Hashish gross sales in Canada dropped final 12 months, however pre-roll gross sales continued to rise and are on the verge of turning into the highest gross sales class within the nation.
Flower gross sales dropped 9.3% in 2024 and edibles plunged 12.4% final 12 months, contributing to a complete hashish income decline of three.27%, in accordance with a Customized Cones USA report primarily based on Headset information.
Whole hashish income refers back to the whole gross sales worth of completed merchandise at shops throughout all classes.
On the identical time, pre-roll gross sales rose 1.24% and items bought elevated 1%.
In Canada, flower is the gross sales chief by 0.25% beating pre-roll gross sales by $11.4 million, stated James Valentine, content material advertising supervisor for Renton, Washington-based Customized Cones USA.
“There may be heavy producer funding in Canada in pre-rolls,” Valentine stated.
“Of recent merchandise launched final 12 months, 40% had been pre-rolls, adopted by flower.”
U.S. pre-roll gross sales jumped practically 12% between June 2023 and June 2024 as new markets opened.
“Within the American market, pre-rolls rank No. 3 behind vape pens and flower,” Valentine stated.
Hashish pre-rolls outsell flower by $33 million
Canadian hashish shoppers appear to want the comfort of pre-rolls in the course of the hotter months, Valentine stated.
For the six months between Might and October, pre-rolls outsold flower by $33 million, peaking in July with a 3% gross sales lead.
Common Admission is the clear chief within the Canadian pre-roll market, outselling No. 2 model Shred by 250%, in accordance with the Customized Cones USA/Headset report.
In 2023, Common Admission merchandise held 5 of the highest 10 spots on the most well-liked merchandise record and three of the highest 5. Of these, all had been infused and 4 had been multipacks.
California-based Jeeter, a newcomer to the Canadian market, landed within the No. 4 spot by way of market share.
Adam Coates, chief income officer of Calgary, Alberta-based Decibel Hashish Co., maker of Common Admission, stated pre-rolls are on the verge of overtaking flower because the dominant hashish merchandise available in the market.
“You already see – particularly in the summertime months – the place pre-rolls spike,” he stated.
“Prepared-to-consume merchandise are on pattern for shoppers. They don’t wish to mess around with it so much to eat it.”
Pre-roll preferences change province to province
However the pre-roll market differs between provinces, Coates stated.
British Columbia, for instance, has a 20% incremental tax on vape merchandise, Coates stated.
Even so, British Columbia skilled solely a 0.45% progress in pre-roll gross sales year-over-year, whereas smaller markets similar to neighboring Alberta jumped 5.6% year-over-year and Saskatchewan rose 3.5%.
Quebec, which isn’t tracked by Seattle-headquartered hashish analytics agency Headset, caps the THC content material of all hashish merchandise bought at 30% so infused pre-rolls aren’t an choice within the province.
Quebec additionally doesn’t allow vape merchandise, though the ban can be lifted this fall, so that they’re not competing with pre-rolls.
“We’re seeing pre-roll progress in Quebec, nevertheless it’s a distinct market,” Coates stated.
“You don’t get the identical product assortment that you just do in different provinces.”
Progress has slowed total, Coates stated, and pricing has flattened.
“Flower remains to be the most important class, and due to a step-down of manufacturing, flower pricing is beginning to come up,” Coates stated.
“That hasn’t occurred in a very long time.”
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Pre-rolls poised for gross sales, innovation supremacy
Chris Jones, president of Toronto-headquartered Hashish Xpress, stated pre-rolls rank among the many retailer’s top-selling merchandise at its 14 shops in Ontario – particularly with more and more well-liked infused joints that enchantment to skilled shoppers who need one thing stronger.
“The demand extends past simply the summer season months, although many shoppers respect the flexibility to strive completely different strains in smaller portions with out committing to bigger flower purchases,” Jones stated.
In New Brunswick, the place Hashish Categorical operates 4 shops, pre-rolls even have demonstrated regular progress.
However flower continues to dominate the market, which Jones attributes to “the extra conventional buying habits of many hashish shoppers within the area.”
“The (pre-roll) class advantages from sturdy native manufacturers and a buyer base that values high-quality, well-rolled merchandise,” Jones stated.
“The resilience of pre-rolls suggests a shift in client preferences.
“If this pattern continues, we might even see pre-rolls not solely develop into Canada’s top-selling hashish product but additionally drive additional innovation in codecs, sizes and efficiency ranges.”
Margaret Jackson could be reached at margaret.jackson@mjbizdaily.com.
