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Pre-rolls remain the fastest growing product segment in the cannabis industry, white paper finds

Grow Opportunity, Media Partners

This post is presented by our media partner Grow Opportunity
View the full article here.

(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
  • Since 2021, data shows an almost 400 per cent growth in multi-pre-roll packs that have a volume of two or five grams
Category Growth Trends

The rise of higher quality pre-rolls at lower retail price points

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  • 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

Category 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.

This post was originally published by our media partner here.

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