Pre-Roll Industry Sees 13.4% Surge in Sales Growth in US, 36% in Canada

Unrolling Success that Fuels the Pre-Roll Revolution in Cannabis Consumption

In the vast realm of cannabis consumption, pre-rolls stand tall as a favored and convenient choice. Whether seeking a swift and uncomplicated smoke, a discreet and portable option, or a premium, flavorful experience, pre-rolls cater to a diverse audience. The staggering numbers affirm this trend: pre-roll sales have experienced a remarkable surge in both the US and Canada, surpassing the overall cannabis market.

A recent report by Headset, a leading cannabis data and analytics company, reveals a compelling narrative. Pre-roll sales witnessed a remarkable 13.4% growth in the US and an astonishing 36.5% surge in Canada from 2022 to 2023. In comparison, total cannabis sales increased by 9.8% and 25.6%, respectively. This substantiates the notion that pre-rolls are not merely gaining traction but are evolving into a substantial product category in both countries.

Notably, pre-rolls commanded a substantial share, constituting 15.3% of total cannabis sales in the US and an impressive 33.3% in Canada in August 2023. This establishes them as the third largest product category in the US and the second largest in Canada. Particularly in Canada, pre-rolls account for nearly a quarter of all cannabis sales.

What fuels this impressive growth, and what nuances and opportunities characterize the pre-roll industry? Let's delve into the key factors and insights driving the pre-roll boom.

The Ascent of Connoisseur/Infused Pre-Rolls

A standout trend in the pre-roll landscape is the burgeoning prominence of connoisseur/infused pre-rolls. These pre-rolls feature high-quality flower, often blended with other cannabis products like kief, hash, oil, or distillate, creating a more potent and flavorful smoking experience.

The segment of connoisseur/infused pre-rolls is rapidly gaining ground, increasing market share in both the US and Canada from 2022 to 2023. In the US, they constituted 18.7% of pre-roll sales in August 2023, up from 15.9% in August 2022. In Canada, the figure rose to 11.9% in August 2023, from 8.5% in August 2022.

The popularity of connoisseur/infused pre-rolls can be attributed to various factors:

- Growing demand for premium and artisanal products among cannabis consumers, particularly those seeking elevated quality, potency, and terpene profiles.

- Continuous innovation and differentiation by pre-roll brands, crafting novel blends and formulations to captivate and retain customers.

- The inherent appeal and convenience of pre-rolls, offering a ready-to-use and hassle-free way to indulge in cannabis without the need for rolling papers, grinders, or additional accessories.

The Dynamics of Consolidation and Competition Among Pre-Roll Brands

Another compelling trend in the pre-roll arena is the ebb and flow of consolidation and competition among pre-roll brands. As the pre-roll market matures and expands, the landscape of brands undergoes transformations.

In the US, the count of pre-roll brands decreased by 7.4% from 2022 to 2023, following a peak in 2022. This suggests a maturing and intensifying US pre-roll market, where some brands exit or merge, while others vie for a larger slice of the pie.

Conversely, Canada presents a different picture, with the pre-roll brand count witnessing a 26.8% increase from 2020 to 2021. This hints at the Canadian pre-roll market still being in its early stages of development and growth, as new brands enter the market, offering more choices and diversity to consumers.

The implications of the consolidation and competition of pre-roll brands are noteworthy:

- The paramount importance of brand loyalty and awareness, as pre-roll brands strive to establish and sustain robust relationships with their customers, differentiating themselves from competitors.

- Opportunities for cross-border expansion, enabling pre-roll brands to leverage their success and reputation in one market to enter and capture another, especially in the US and Canada, where cannabis enjoys federal legality.

- The potential for collaboration and partnership, as pre-roll brands explore avenues to work together, creating distinctive products or accessing new channels and markets.

The Pinnacle: Envisioning the Future of Pre-Rolls

Pre-rolls are not ephemeral or confined to a niche; they have become a formidable force in the cannabis industry, asserting their permanence. Demonstrating their appeal and value to consumers, pre-rolls exhibit resilience and adaptability to market changes.

As the pre-roll industry continues its upward trajectory, anticipate witnessing more innovation and diversification in the pre-roll category, including:

- The advent of new and enhanced pre-roll formats, such as mini pre-rolls, multi-packs, filtered pre-rolls, or pre-rolls infused with CBD or other cannabinoids.

- The emergence of new and niche pre-roll segments, encompassing wellness pre-rolls, social pre-rolls, or occasion-based pre-rolls.

- Integration of cutting-edge technologies, giving rise to smart pre-rolls, biodegradable pre-rolls, or personalized pre-rolls.

Pre-rolls extend beyond being a product; they encapsulate an experience and mirror the cannabis culture and community. They serve as a conduit to celebrate and relish cannabis, fostering connections and shared experiences. The future of cannabis is intertwined with pre-rolls, and we embrace the journey with enthusiasm. 🌿