Zillenials Opting for ‘Cannabis over Booze’: Implications for the Kenyan Scene

In a trend that is reshaping consumption habits globally, a recent report by a leading multinational investment bank, TD Cowen, suggests that the balance between cannabis and alcohol is undergoing a significant shift. Titled “Cannabis Beats Booze,” the report projects that nearly 20 million more individuals will choose cannabis over alcohol in the next five years. With marijuana sales reaching a staggering $29 billion in 2023, constituting approximately 11 percent of the alcohol industry's revenue, this shift is poised to have far-reaching implications.

Kenya's Unique Situation

Kenya, like many other countries, is experiencing the ripple effects of this changing dynamic. While marijuana remains illegal in the country, there exists a vibrant gray market that caters to the preferences of the younger generation, the so-called Zillenials, who are increasingly opting for cannabis over traditional alcoholic beverages. This shift is notably influenced by the fact that Zillenials have come of age in an era where cannabis is less stigmatized, challenging the longstanding cultural norms associated with its use.

Potential Implications for Local Alcohol Companies

In Kenya, major players in the alcohol industry, such as the East Africa Breweries Limited (EABL) and Keroche, are feeling the impact of this changing trend. Zillenials, and soon the upcoming Generation Z, are steering away from traditional alcohol consumption, leading to potential revenue loss for these companies. To remain relevant and sustain their market share over the years, these companies may need to adapt to the evolving preferences of their target audience.

One plausible strategy for local alcohol companies is to acknowledge the changing landscape and cater to the preferences of the new generation. As Zillenials increasingly opt for cannabis, companies like EABL and Keroche may explore creating cannabis-infused products to appeal to this growing client base. This innovative approach could not only help them retain existing customers but also attract new ones who are inclined towards cannabis consumption.

Alternatively, local alcohol companies might play a proactive role in advocating for the legalization of marijuana. By doing so, they could tap into the emerging cannabis market legally, meeting the evolving needs of consumers while diversifying their product offerings. This strategic move would not only ensure compliance with the law but also position these companies as pioneers in adapting to changing consumer preferences.

Conclusion

As Zillenials increasingly opt for “cannabis over booze,” Kenya's grey market is witnessing a transformative shift. This trend poses challenges for traditional alcohol companies, forcing them to reconsider their strategies to remain competitive. Whether through the development of cannabis-infused products or active participation in the legalization debate, these companies face a critical juncture in adapting to the changing dynamics of consumer preferences. The times are calling for innovation and flexibility, and only those companies that can navigate this new terrain stand to thrive in the evolving landscape of Kenya's consumption habits.