(Globe Newswire) Kent, Washington — Customer Cones USA, the cannabis industry experts in pre-rolls packaging, and manufacturing solutions, today published a white paper in partnership with Headset to find that pre-rolls remain the fastest growing product segment in the cannabis industry, growing 12 per cent year-over-year in the US and a blistering 38 per cent year-over-year in Canada.
The Custom Cones USA team polled over 300 companies from every corner of the pre-roll industry and analyzed retail POS data from Headset, as well as their own B2B sales data to illustrate why the pre-roll category is one of the leading product categories for cannabis companies. Notable findings include:
Infused pre-rolls are the largest growing segment in the pre-roll industry
- In both the US and Canada, pre-roll segments were two of the top three highest growing individual product segments
- Infused/connoisseur pre-rolls
- +1,426 per cent YoY in Canada
- +22 per cent YoY in USA
- Mixed strain pre-rolls
- +440 per cent YoY in Canada
- +63 per cent YoY in USA
- Disposable vape pens
- +160 per cent YoY in Canada
- +60 per cent YoY in USA
- Infused/connoisseur pre-rolls
- Since 2021, data shows an almost 400 per cent growth in multi-pre-roll packs that have a volume of two or five grams
The rise of higher quality pre-rolls at lower retail price points
- Over the past few years, the wholesale price of flower has dropped dramatically, making high-quality flower pre-rolls more affordable.
- Advancements in both table-top cone filling machines and automated pre-roll machines have allowed manufacturers to produce more pre-rolls with lower labor costs. All these factors combined led to higher quality pre-rolls at lower retail price points, which has driven strong growth for the category.
- Producers no longer have to infuse each pre-roll by hand, as they now have access to machinery that can efficiently automate infused pre-roll production at scale.
In the US and Canada, pre-rolls show the least amount of price compression
- In Canada, infused pre-rolls have become so popular that it is driving up the average cost of a pre-roll. Our research shows that people are willing to pay more for potency, which is a common theme across the cannabis industry.
- The most important takeaway from this graph is that, even though prices for all cannabis products decline over time, pre-rolls are showing the least amount of price compression. In other words, if you are in the business of selling cannabis, and you are worried about declining margins, pre-rolls are a category you should be expanding into to maintain and boost profitability.
The Custom Cones USA white paper provides qualitative and quantitative data to support the claims of pre-rolls becoming the No.1 largest product segment by 2030. The team offers insights into the business of pre-rolls, the importance of selecting the right materials for pre-rolls, the importance of machinery to enhance the profitability of the products, as well as the different types of pre-rolls that the market has available.
“This white paper demonstrates the continued growth of the pre-roll industry and its potential to become the No.1 largest product category within the cannabis industry. We thank our partners at Headset for collaborating on the white paper to provide a wealth of information that people can trust to make informed business decisions in our evolving marketplace.” — Harrison Bard, co-founder and CEO, Custom Cones USA
For the full white paper, find it HERE.