A new report indicates that, of the legal cannabis products on the market, pre-rolls continue to be among the most popular.
According to Headset, year-over-year pre-roll sales have increased 12 percent in the United States and 38 percent in Canada.
On the opposite end of the list, beverages and vape pens were among the categories with the slowest growth.
Headset also says flower prices have dropped dramatically within the past few years, facilitating higher-quality pre-rolls at lower prices.
The company also says production machinery advancements have lowered labor costs and increased productivity—leading to lower retail prices.
According to Headset, the combination is a driving force for the pre-roll market.
Noting pre-reolls’ increased popularity in Canada over the U.S., Headset says it may be cultural, and Canadians simply prefer joints.
But whatever the reason, Headset says further research is necessary to accurately evaluate the specifics of Canada’s cannabis market.
“This white paper demonstrates the continued growth of the pre-roll industry and its potential to become the #1 largest product category within the cannabis industry,” says Custom Cones USE Co-Founder Harrison Bard. “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.”
In Headset’s most recent poll, 57.9 percent of retailers responded that pre-rolls made up 25 percent or less of sales.
Another 25.4 percent said pre-rolls accounted for only 25-50 percent of their business.
Headset says the survey indicates that few companies exclusively rely on pre-rolls for revenue.
But, according to the report, pre-rolls still account for a “big section” of overall sales for companies that produce them.
According to the report, house brands are the biggest sellers, accounting for $277,278,321.04 in sales.
Jeeter is the second-most popular brand on the list at 216,619,808.52 in sales, followed by Lowell ($38,040,046.50) and Kingpin ($32,379,941.96).
The report notes that pre-rolls offer some of the biggest product varieties because of how easy they are to customize.
Headset says its data clearly shows that companies stand to profit from offering a varied selection of pre-roll varieties.
According to Headset, if pre-roll quality continues to rise, they should start to overtake the flower category.