By Mrinalika Roy and Sourasis Bose

Oct 22 (Reuters) - Young women are consuming more pot

than men for the first time in a historic shift in the $30

billion U.S. cannabis industry, prompting companies to revamp

products and step up investments.

Top cannabis retailers told Reuters they've started

refocusing shelf space toward products that have proved popular

with women, including edibles, tinctures, topicals, and

beverages, in the hopes that any resulting rise in costs will

pay off in the longer term.

"Creating new products or rebranding may seem like sunk

cost, but with women making over 80% of purchasing decisions in

the U.S., it's not just smart, it's necessary," said Lauren

Carpenter, CEO of cannabis dispensary chain Embarc.

Women now make up 55% of the user base on Jointly, a

cannabis product discovery app, and are even surpassing men in

spending in certain areas. In September, the average purchase

size of female buyers exceeded $91 at Housing Works Cannabis Co,

New York's first legal dispensary, compared with $89 by male

buyers.

Updated branding, market study and women-focused research

and development could be needed to capitalize on the growing

market potential - a "short-term impact on capex with the

long-term benefit of capturing female consumers who are not

going anywhere", said Embarc's Carpenter said.

Women aged 19 to 30 surpassed men of the same age in

cannabis consumption for the first time in 2023, according to a

survey by the U.S. National Institute on Drug Abuse (NIDA).

The rise could be partly attributed to medical reasons like

stress and anxiety, said NIDA director Nora Volkow, one of the

study authors.

Out of a dozen regular female cannabis consumers interviewed

by Reuters, the majority cited mental health concerns such as

anxiety and depression as their primary reason for usage. To be

sure, there is little evidence to suggest cannabis can help with

those issues.

The ongoing legalization of cannabis across more U.S. states

and growing social acceptance have also fueled the shift.

"Women are more likely to purchase from the industry's legal

market than their male counterparts, making them practical

targets with long-term capital benefits," said Tatiyana Brooks,

co-founder of cannabis data firm GetCannaFacts.

New York-based Tilray, a retailer with a market cap

exceeding $1 billion, said it was increasing investments in its

brands favored by female patrons, such as Solei Cannabis.

The firm, which holds a 45% market share in the cannabis

beverage market, said its range of offerings, including its XMG

brand's lemon iced tea that is sold for around $6, has been a

big hit with women.

Similarly, Calgary-headquartered High Tide partly

credited its recent acquisition of Queen of Bud to the Canadian

brand's designed-for-women products featuring higher

concentrations of THC, the main active ingredient in cannabis.

The companies did not divulge the increased costs that this

shift may entail, as the trend remains relatively nascent.

A generational shift is also evident. Several retailers and

dispensary owners have reported that their younger customers, or

Gen Z, are consuming less alcohol and tobacco, and more

cannabis.

"Businesses that take the buying power of female cannabis

consumers more seriously will stay ahead of the curve among

competitors," said Brooks from GetCannaFacts.