New York City’s Fifth Avenue, known for its high-end retailers, has now become home to a luxury cannabis dispensary. The Travel Agency, an adult-use recreational marijuana dispensary, offers a sleek and sophisticated shopping experience. With its white interiors, glass cabinetry, and knowledgeable “budtenders,” the dispensary fits right in with its chic neighbors. The Travel Agency is one of 166 licensed dispensaries in New York state, with over 50 in New York City alone.
Since the legalization of adult-use marijuana in New York state three and a half years ago, the cannabis market has seen significant growth. In 2020, licensed cannabis sales exceeded $100 million. As the state cracks down on illicit shops, legal avenues for cannabis consumption are gaining traction, especially in the luxury market. The Travel Agency’s founder, Paul Yau, plans to open a fourth location in one of the city’s other high-end shopping districts, SoHo.
While the dispensary’s elevated interiors attract both new and legacy customers, its ethical mission is what keeps them coming back. The Travel Agency’s Union Square location donates 51% of its proceeds to the Doe Fund, supporting formerly incarcerated individuals transitioning to life outside of prison. Housing Works Cannabis Co., New York City’s first licensed dispensary, also supports a nonprofit organization. All of its proceeds go to the Housing Works nonprofit.
The Travel Agency and similar dispensaries are not only attracting customers who were already familiar with marijuana, but also those who are new to the legal market. Yau refers to these new customers as the “canna-curious.” The Travel Agency’s curated product offerings and architecturally inspired space help ease these customers into the legal cannabis world. Yau specifically designed the stores with a 40-year-old female demographic in mind, creating an atmosphere that is far from the illicit image associated with marijuana.
To appeal to the canna-curious, marketing plays a crucial role. THC seltzer company Cann aims to communicate approachability to consumers who may have had negative experiences with marijuana in the past. Cann’s founders, Jake Bullock and Luke Anderson, designed their seltzer cans to be small, pastel-colored, and inviting. They want consumers to feel comfortable drinking the entire can, assuring them that the THC content is just 2 milligrams. While Cann’s seltzers are priced higher than regular alcoholic seltzers, the company believes its target audience, largely millennial consumers, will appreciate the premium and exclusive experience.
The luxury cannabis industry goes beyond THC products. Home designer Jonathan Adler offers marijuana-themed home decor items like storage canisters and bowls, while lifestyle brand Edie Parker sells smoker-friendly handbags and other accessories. Actor Seth Rogen’s lifestyle brand Houseplant caters to luxury cannabis users with marble rolling trays and ash trays.
Luxury cannabis brands are finding unique ways to reach their target audience. Cann, for example, has partnered with the Montauk Surf Lodge, where guests pay a minimum of $3,000 for a one-night table. The hemp-derived version of Cann’s seltzers can now be purchased alongside other high-end beverages. By targeting premium consumers in exclusive locations, brands like Cann hope to make cannabis a part of their customers’ luxurious lifestyles.
Overall, the luxury cannabis market in New York is still in its early stages. Dispensaries like The Travel Agency offer promising partnerships for fashion brands looking to tap into the “coolness” of the cannabis industry. With the continued growth of the legal cannabis market and the increasing acceptance of marijuana, luxury cannabis brands have the potential to thrive and attract a wide range of consumers.
