3 Unlikely Industries Cashing In On Cannabis

Millennial research, Millennial insight, Millennial marketing, Gen Z research, Gen Z marketing, Gen Z insight, youth research, youth marketing

As weed goes mainstream, brands and products across the spectrum are tapping into the trend to reach young consumers. We’ve highlighted how three industries are getting unexpected weed makeovers...

Since we first wrote about the the burgeoning “marijuanaconomy” a few years ago, the cannabis industry has exploded--and brands are taking the opportunity to ride the weed wave. Recreational marijuana is legal in nine states and Washington D.C., and medical marijuana is legal in 29 states. This year, more states are set to legalize adult-use as public support of the drug soars to record heights—over six in ten Americans now say the use of marijuana should be legalized, according to a Pew Research Center survey, a figure that increases to 70% among Millennials. Young consumers have been leading the charge in the mainstreaming of weed: 52% of the country's 55 million pot users are Millennials.

But we’re not just talking about the illegal stuff. CBD (the non-psychoactive compound in cannabis) and hemp have exploded as trendy ingredients that surprising industries are adding to their products to appeal to young consumers. While it may still be awhile before we see the political overhaul required for national legalization, that’s not stopping brands and products across the spectrum from jumping in on the hype—and targeting young consumers.

Beauty, food and beverage, and wellness are all getting a cannabis infusion with surprising new products and services. Find out which companies are innovating in their respective industries below, and get a glimpse of what’s next:

Millennial research, Millennial insight, Millennial marketing, Gen Z research, Gen Z marketing, Gen Z insight, youth research, youth marketing1. Beauty

Young consumers love a good miracle ingredient when it comes to beauty trends, which set the industry up perfectly for the next wellness phenomenon—cannabis. CBD oil is making its way into makeup, skincare, and even…

 
 

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Quote of the Day: “It's free to walk to work and I get some exercise in.”—Female, 26, NY

Niche beauty brands have blurred gender lines at their core—can large cosmetics companies play catch up without seeming “disingenuous”? Milk Makeup and Fluide have built their brands on being inclusive, but larger brands sometimes strike consumers as hopping on the band wagon when they try to do the same—especially since they created so many of the gender norms they’re now rallying against. The best way for them to get in on the trend? Start by making their hiring process more inclusive both “behind the lens” and in front of it. (Fast Company)

Starbucks thinks the “health and wellness” trend is to blame for declining Frappuccino sales. Despite marketing efforts like the Unicorn Frappuccino, syrupy drink sales are down 3% from last year. However, rivals like McDonald’s and Dunkin' Donuts could be stealing sugary beverage sales from the coffee giant, meaning young consumers’ penchant for healthification isn't necessarily the culprit. In fact, McDonalds recently debuted two new frozen drinks that earning praising on Twitter. (NYPFox News)

Apple is getting into kids’ content, teaming up with Sesame Workshop for a slate of original shows. Live-action, animated, and puppet-based series will be included in the programming, but Sesame Street itself is not part of the deal. There are no details yet on where Apple will release the shows, meaning they could either shop them to another platform or debut them on their own streaming platform. Considering that Apple has several original program deals in the works, they could be looking to bulk up their own bid in the streaming wars. (Kidscreen)

Twitter and Tumblr posts are getting a new lease on life—as screenshots on Instagram. While young users of Twitter and Tumblr have declined, Ypulse’s Social Media Trackerfound that over half of 13-35-year-olds use Instagram daily. Instagram is the preferred place to post memes, despite many accounts creating their content elsewhere. Why do they switch platforms to post? Instagram’s Discover tab allows faster browsing than Twitter, while Instagram images are displayed in full rather than being cut off, like they are on Twitter. (The Verge)

Eggo sales are down in between seasons of Stranger Things. Yes, the sci-fi series has that much influence on the frozen waffle’s revenue. One Eggo executive explains that they “quickly leveraged the [resulting] consumer engagement” from the show, and it paid off: sales jumped 14% in the fourth quarter of 2017 and 9.4% for the first four months of 2018. However, fewer people are binging the Gen Z & Millennial favorite these days, so Kellogg’s frozen pancakes, waffles, and French toast sales have slowed to just 1.3% year-over-year. (CNN)

Quote of the Day: “I fell in love with trance music.”—Male, 23, NY

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