During my teen years in the 1970s, prominent users of marijuana were long-haired kids at rock concerts. These days, they’re gray-haired seniors in rocking chairs.

New statistics reveal that seniors are by far the fastest-growing pot demographic in the United States. And I don’t mean high school seniors. Grandma and grandpa are flocking to marijuana, both for medicinal and recreational purposes.

Whether Led Zeppelin posters start popping up in nursing homes remains to be seen. But one thing is certain: cannabis companies that target seniors are enjoying powerful demographic tailwinds. The greatest growth opportunities in marijuana lie with the elderly.

The graying are going for the green. According to the most recently available national data, the share of over-65 Americans who have used marijuana nearly tripled in a decade, from 11% in 2009 to 32% in 2019. More than half of the 60-64 demographic reported cannabis use. Additional studies published in August 2023 confirm that a similar pace of senior use has continued into this year.

The spike in use by older Americans underscores a trend that has been unfolding since the movement to legalize marijuana started to gain traction in the mid-1990s.

The trend is especially important for marijuana companies with substantial exposure to Florida.

The Sunshine State, with its growing population of retired baby boomers and easy-going subtropical culture, is a thriving mecca for marijuana companies. Cannabis sales are growing quickly throughout the U.S., but pot demand is especially strong in Florida.

Forget the usual pain remedies. Retirees are clamoring for Mary Jane. The highest number of medical marijuana patients in the country live in Florida, currently numbering more than 781,000, more than double the number in 2020.

Marijuana in Florida remains illegal for recreational use. Medical use was legalized in 2016 via a constitutional amendment. Appearing on the ballot as Amendment 2, the initiative was approved with 71% of the vote.

A constitutional amendment to legalize recreational marijuana will appear on the Florida ballot in the November 2024 election; polls show that a majority of voters would vote yes.

As marijuana investors have learned, actions on the federal and state levels have the power to dramatically move pot stocks up or down.

The medical marijuana industry in Florida is currently valued at $1.8 billion, one of the largest in the nation. Statista forecasts that Florida’s medical marijuana sales will reach $2.5 billion in 2025.

Read This Story: 10 Reasons to be Bullish on Marijuana Stocks in 2024

Florida’s marijuana jobs market grew 93% in 2019, the year state law allowed the sale of smokable flower. Cannabis now employs more than 29,000 people in the Sunshine State. More than 500 legal dispensaries have sprouted up there.

Graying baby boomers…

As laws legalizing marijuana proliferate throughout the U.S., the perception of marijuana as risky is diminishing, especially among the older adult population who came of age during the rebellious 1960s and 1970s. As they retire, many of these senior citizens will either continue, restart, or initiate marijuana use.

The annual National Survey on Drug Use and Health this year found large increases in cannabis use among several demographic subgroups of older Americans including women, people of color, those who reported receiving mental health treatment, individuals with diabetes, and those with higher family incomes.

The increase in cannabis use by seniors is linked to changing policies and social attitudes. The legalization of medical and recreational cannabis has spawned “destigmatization” (see chart, compiled with the most recently available data):

What’s more, medical evidence increasingly shows the efficacy of cannabis-based treatments for chronic illnesses. Doctors around the country are reporting an increase in marijuana use by seniors in their geriatric practices.

Patients with spasticity related to multiple sclerosis or nausea associated with chemotherapy have been shown to benefit from medical use of specific cannabinoids. Substantial evidence demonstrates that cannabis helps to reduce pain. The most consistent benefit of cannabis is witnessed in nerve pain among the elderly.

Weeding out the best stocks…

When looking for suitable marijuana investments, my strategy is to find companies that apply a unique value-add, whether in the recreational or medicinal sector. Another consideration is whether it’s effectively targeting a desirable sub-group of consumers, such as the elderly.

I look for pot companies with patents, proprietary technology or special managerial know-how. I also prefer companies with solid balance sheets, branded products and extensive supply chains. These are the marijuana investments that will survive and thrive, whereas it’s no great feat to simply grow a plant or squeeze oil out of a leaf.

Some cannabis stocks are stellar investments. Many others are not. You need to conduct due diligence.

That’s where my publication, Marijuana Profit Alert, comes in. By applying my proprietary screening methodologies, I pinpoint for subscribers the most attractive plays on the “green rush.” To learn more, click here.

John Persinos is the chief investment strategist of Marijuana Profit Alert.

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