Exclusive news and research on the wine, spirits and beer business

Pre-Rolls Taking Share In North American Cannabis Markets

November 1, 2022

While flower remains by far the dominant category in the North American cannabis market, other form factors continue to make inroads, including pre-rolls, which boosted their share in both the U.S. and Canada over the first six months of this year. According to cannabis market tracker Headset, the U.S. market for pre-rolls reached $752 million from January through June, representing the third-largest product format and accounting for 12.6% of the total cannabis category. In Canada, pre-rolls’ market share is even larger at nearly 25%. Moreover, the pre-roll segment’s share expanded by double-digits in both countries in the first half, with its slice of the pie growing by 12% in the U.S. and 31% north of the border.

While market share is on the rise across North America, consumer preferences in pre-rolls are slightly different in the U.S. and Canada. In the former, consumers reach most frequently for what Headset calls the Connoisseur/Infused segment, which accounts for 42% of pre-roll sales. By contrast, Canadian consumers gravitate to Single Strain Hybrid pre-rolls, although Connoisseur/Infused products have made strong headway over the past year, with their share jumping from 0.1% to 11.2%.

Pricing in the pre-roll segment is higher in Canada than in the U.S., where the average unit price is just under $14. In Canada, by contrast, pre-rolls average about C$21 ($16) per unit. The higher-end Connoisseur/Infused segment veers higher in both markets, averaging just under $17 in the U.S. and C$27 ($21) in Canada.

In the U.S., pre-rolls are especially prevalent in the California market, where they account for nearly 15% of sales. Colorado has the lowest pre-roll share among markets in the U.S., with only 8% of sales going to the category. As Headset notes, Colorado instead favors the edibles and concentrates categories more than other adult-use markets in the U.S., with those formats taking 15% and 12% shares of its sales respectively.—Daniel Marsteller

Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.

Tagged : , ,

GET YOUR FIRST LOOK AT 2021 DATA AND 2022 PROJECTIONS FOR THE WINE AND SPIRITS INDUSTRIES. ORDER YOUR 2022 IMPACT DATABANK REPORTS. CLICK HERE.

Previous :  Next :