A new study is shedding light on how racial identity labels impact consumer behavior in the cannabis industry. Researchers found that labeling marijuana products as “Black-owned” significantly increased interest among white consumers—but had little or no effect on interest among Black consumers.
The study, conducted by researchers from Yale University and published in the journal Social Psychological and Personality Science, surveyed more than 950 adults. Participants were asked about their willingness to purchase cannabis products based on whether or not the products were identified as being from a Black-owned company.
The results revealed a surprising dynamic. White consumers showed a noticeable increase in interest when a product carried a Black-owned label, possibly because it signaled support for diversity, social justice, or ethical buying practices. However, Black consumers did not respond with the same increased enthusiasm, suggesting that simply highlighting ownership status is not enough to build trust or appeal within the Black community.
Researchers theorize that Black consumers may view such labels with skepticism if they are not backed by real efforts to ensure quality, authenticity, and long-term investment in Black communities. Many also cited concerns about tokenism—where businesses use diversity labels as marketing tools without addressing deeper issues of equity and representation in the cannabis industry.
This study is important because it highlights the complexities of marketing cannabis products in a racially diverse industry. While many companies have launched “equity brands” or promoted minority ownership as a selling point, the research shows that genuine connection and community support matter more than surface-level labeling.
The cannabis industry has long faced criticism for excluding Black entrepreneurs, even as Black Americans were disproportionately targeted during the War on Drugs. Efforts to correct those imbalances, such as social equity programs, are essential. However, this new research suggests that building real trust and support among Black consumers will require more than marketing—it will require systemic change, investment, and sincere commitment to equity.
As the cannabis market continues to grow, brands must be mindful about how they approach diversity—not just as a selling point, but as a core value backed by action.
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