Who Buys White-Label Cannabis? A Look at Demographics and Consumer Trends

The rise of white-label cannabis products—store-owned or retailer-branded lines—has raised an important question: which demographic groups are most likely to buy them, and why? Market evidence suggests that Millennials and Gen Z consumers over-index in this category, driven by value-seeking behavior, generational comfort with private labels, and trust in retailer quality assurance.

Generational Comfort with Store Brands

White-label is no longer viewed as a second-tier choice. In mainstream retail, Millennials and Gen Z have proven far more receptive to private-label products than older cohorts. Research shows that these groups are not only more willing to buy store brands, but they are also more likely to view them as high-quality alternatives rather than “cheap substitutes.” This normalization stems from broader retail shifts where private label has gained premium positioning in food, beverages, and wellness products. For younger consumers, value now translates to “quality at a fair price” rather than simply “the lowest cost.”

Record Growth in Private Label

White-label products have reached record levels across U.S. retail, with sales exceeding hundreds of billions in 2024. Nearly all U.S. households purchase private-label goods, and younger shoppers in particular are accustomed to “dupes” and smart swaps marketed heavily on social media. These behaviors have carried into cannabis. For Millennials and Gen Z, trying a dispensary’s house brand feels no different from choosing a retailer’s private-label beverage or snack. The stigma has faded, and instead, store brands are seen as savvy choices.

Cannabis Consumer Base Skews Young

The cannabis industry’s demographic mix naturally favors Millennials and Gen Z. Together, these groups account for the majority of sales nationwide, with Millennials representing the largest spending cohort and Gen Z growing fastest year-over-year. Since younger buyers dominate the marketplace, their purchasing behaviors set the tone for emerging trends, including the adoption of white-label cannabis. When house brands gain traction, it tends to show first in these baskets simply because these demographics make up the majority of transactions.

Price Sensitivity Meets Potency Expectations

Economic pressures have also influenced buying habits. Millennials and Gen Z are highly price-conscious but remain focused on potency, consistency, and presentation. White-label cannabis offers an appealing balance: products priced lower than national brands while still backed by the retailer’s quality standards and return policies. This combination has resonated most strongly in categories like pre-rolls, where Millennials already account for a large share of demand. The format is affordable, familiar, and often serves as the entry point into white-label experimentation.

Digital Behavior and Loyalty Programs

Psychographics reinforce these patterns. Younger cannabis consumers are digital-first, responsive to promotions, and enrolled in loyalty programs at higher rates than older demographics. Retailers leverage purchase data from these programs to design house-brand assortments that align with consumer preferences, offering tiered options in flower, vapes, and edibles. Additionally, younger shoppers are more likely to view retailer-backed lab testing, certificates of analysis, and curated product drops as sufficient reassurance to buy house products confidently.

Beyond Budget Shoppers

It is also worth noting that white-label appeal extends beyond budget-conscious demographics. High-income shoppers are increasingly willing to see private label as a smart alternative, further signaling that the trend is not confined to lower-cost segments. However, younger generations remain the strongest drivers because of their dominant presence in cannabis sales, their comfort with retailer exclusives, and their embrace of value-for-quality purchasing.

The Clear Demographic Leaders

In cannabis retail today, Millennials and Gen Z stand out as the demographic groups most likely to purchase white-label products. They are conditioned by broader retail experiences, incentivized by loyalty discounts, and motivated by value-to-potency ratios. Their behaviors continue to shape cannabis product trends, positioning white-label lines as a core growth channel for retailers seeking stronger margins and deeper consumer loyalty.