By Harrison Bard Co-Founder and CEO of Custom Cones USA
Pre Rolls are more than just a trend
Pre-rolls are the biggest trend right now in the cannabis market. Pre-rolls, which are growing at 12% YoY and 38% in Canada in the legal cannabis industry, are by far the fastest growing product.
The rise of pre-rolls could be attributed to a sudden surge in popularity, but we think that it is much more than a passing trend. After reviewing the data that we received from Headset we are confident that pre-rolls won’t just continue to grow, but will also become the most popular cannabis product by 2030.
Here’s why!
Prices Fall, Sales Rise, Both Stabilize
In mature markets, wholesale prices of flower have dropped dramatically over the last few years. This has allowed producers to source better quality flower for pre-rolls. Pre-rolls can now be made at lower prices thanks to the advancements in pre-rolling machinery. This has led to a strong growth of the category.
Pre-rolls have been steadily increasing in sales as the prices have declined. However, over the past two years, both the sales and the prices have stabilized. Infused pre-rolls have seen the greatest growth in this segment. Customers are eager to get high THC levels, and producers love that they can now offer them in a pre-roll format.
Pre Rolls with the least Price Compression
Prices are dropping across the board, not just for pre-rolls. Pre-rolls show the least price compression, even though all cannabis prices are falling. If you’re in the cannabis business and are concerned about margins declining, you might want to consider expanding into pre-rolls.
This graph also shows that the average pre-roll price in Canada has increased, but this information is not entirely accurate. It does not mean pre-rolls will be more expensive in Canada. These data show how popular infused flavored pre-rolls have become. These pre-rolls are so popular, people choose to purchase them instead of regular pre-rolls that are more affordable. This change in purchasing habits has led to an increase in the average price for prerolls.
Pre-Roll Multi-Packs
Pre-roll multipacks are also a very popular product. In 2018, pre-roll multi-packs accounted for only 27.7% in Oregon, Washington and Colorado. Multi-packs will make up 47.62% by 2023. This represents a growth rate of around 20% in 5 years. We have also seen a 400% increase in the volume of multi-packs with a 2 or 5 gram size, as well as steady increases across all other sizes, since 2021.
Pre-rolls can be purchased in packs, which is more convenient for the consumer. This means that you don’t have to make a special trip every time you want a pre-roll. Pre-rolls are becoming a popular product among cannabis consumers. They buy more pre-rolls because they know they’ll continue to enjoy them. This is a sign of consumer loyalty.
Pre-rolls are also the most consistent segment of products across all age groups when it comes down to wallet share. Pre-rolls are the only product that shows a consistent increase in popularity across all age groups.
Also, it’s important to note that flower sales are declining among younger generations. This is important because pre-rolls, which are at their core a flower product are not experiencing the same sales decline. Pre-rolls are different from loose flowers because they allow consumers to enjoy the flower without any extras. Pre-rolls are more likely to be a threat to the flower market as they meet the needs of customers better.
Pre Roll Attachment Rates
Pre-rolls are also a great add-on at the point-of-sale. Data shows that when someone walks into a dispensary they add-on pre-rolls 15.5% to 23,3% of the time. Pre-rolls are the most popular product in every segment.
It doesn’t matter what the customer wants to buy, they will be convinced to purchase a pre-roll. The pre-rolls are affordable, made of quality materials and extremely convenient. Pre-rolls are something that flower lovers love to keep on hand, whether they plan to use it immediately or save it for later. This makes it a must-have.
Convenience and Pre-Roll Purchase
Cannabis is making its way into the mainstream of culture. It’s not available in your local supermarket like wine or cigarettes but it is out there. The legalization of cannabis has opened the door to innovation in the cannabis industry, and those innovations are starting to have an impact on everything–especially consumption.
You can’t just enjoy cannabis without paraphernalia. Pre-Rolls offer both the flower and a way to consume. It’s no surprise that pre-rolls could continue to grow, and even start to eat into flower sales.
Cannabis can be compared in this way to tobacco. Although people can purchase loose tobacco to roll their own cigarettes, or use a pipe and cigarette rollers, the majority of people buy pre-rolled products. Although loose tobacco can offer better quality tobacco, a better smoking experience and a lower price, many people choose the convenience of pre-rolled products. As the cannabis market matures, it’s not surprising that this trend is beginning to be observed.
Final thoughts on the pre-roll market
Pre-rolls have been doing a lot of business, and the data also gives us some hints about trends in consumption. The data shows that pre-rolls, which are flower products, are popular with flower consumers. This is not just a trend but a change in consumer preferences. Pre-rolls are becoming more popular as the cannabis market continues to grow.
If you would like to learn more about the pre-roll market, please read the State of the Pre Roll White Paper. You can also contact the Pre Roll Experts at Custom Cones USA if you still have questions.
The post Members Blog: Pre-Roll Industry Trends and Potential Growth appeared on National Cannabis Industry Association.
