In the USA, pre-rolls are the fastest-growing segment of the cannabis market

The madness of pre-rolled joints never dries ups. They are emerging as one of the fastest-growing segments. With convenience becoming a driving force in consumer behavior, pre-rolls have gone from a niche product to a mainstay on retailers' shelves.

This increase in power is underlined by a increase outstanding by 11.89 % in sales between June 2023 and June 2024, according to a study by Custom Cones USA and Headset, a cannabis industry analysis company based in Seattle, and relayed by MJBizDaily.

Explosive growth in pre-rolled sales

Pre-rolls represented more than 4.1 billion dollars sales, with over 394 million units sold in the space of a year. This growth is not limited to sales volume, but also reflects the evolution of product variety and quality.

According to Harrison Bard, co-founder and CEO of Custom Cones USA, quality has continued to rise and prices continue to fall«, making it easier for more accessible and attractive pre-rolls for a wider audience.

Adam Coates, revenue manager of Decibel Cannabis Co, Coates, one of Canada's leading cannabis brands, attributes the rise to consumers« desire for instant gratification. »Convenient formats are starting to catch on," notes Coates, who points to pre-rolls as an excellent example of this trend.

One of the most notable trends in the pre-roll category is the growing preference for infused pre-rolled. These products, which combine cannabis flower with extracts such as distillates or kief, have become the best-selling pre-rolled category in the United States. In the first half of 2024 infused joints held a market share of 44.4 %.

Sales of infused pre-rolls surpassed 1.75 billion dollars in 2023 and early 2024, overtaking hybrid and single-variety pre-rolls. Sebastian Solano,

CEO of the Californian brand Jeeter, has observed that in markets where Jeeter-infused pre-rolls are introduced, they quickly become the dominant product, often accounting for as much as 70% sales.

Consumer preferences and pricing strategies

If power and practicality are at the root of the popularity of pre-rolls, the price remains a key factor for many consumers.

Ching Ho, founder of Dragonfly, a Michigan-based pre-roll company, explained the importance of striking a balance between price and quality. Dragonfly's strategy of offering uninfused pre-rolls at only 1 dollar and versions infused with 3 dollars, has made the company a market leader in Michigan, with plans for expansion in New York.

Dragonfly's success is due in part to its ability to control costs by producing its own cannabis, a strategy that Mr. Ho compares to Costco rotisserie chickens - a high-quality, low-cost offering made possible by mastery of the production process. This approach has enabled Dragonfly to dominate the wholesale pre-roll market in Michigan, selling more products in one month than the entire New York market does in a year.

The rise of multi-pack pre-rolls

Another trend that is reshaping the pre-rolls is the growing popularity of pre-rolled in multipack. These pre-packed containers, which include two or more seals, are both practical and economical for consumers. By June 2024, multipacks will account for almost 50 % of the pre-rolled market, a significant increase over the previous year. 27,7 % recorded in 2018.

Multipack sales are also an indicator of brand loyalty, with many consumers choosing to buy the same product again and again. This trend is particularly prevalent among those who prefer to buy their pre-rolls in bulk, saving money while ensuring a consistent product experience throughout the week.

Pre-rolls have also proved to be an effective way of attracting new consumers. Unlike traditional cannabis flower, which needs to be grinded and then rolled, pre-rolls offer a more accessible ready-to-use option for beginners. This convenience factor should continue to drive the growth of pre-rolls, which are now the third largest category in the cannabis industry, behind flower and vape pen.

«Buying flower and trying to grind it to roll a joint is not very accessible,» said Jeeter's Solano, explaining why pre-rolled is attracting new consumers. The evolution of the market reflects this change, with a growing number of products designed to meet the needs of experienced users and novices alike.

The importance of freshness and packaging

As the pre-roll market continues to grow, the freshness and packaging are becoming increasingly important to consumers. In the early days of legalization, pre-rolls were often associated with poor-quality cannabis, but today the emphasis is on product freshness. To meet this demand, companies are starting to use humidifiers - a practice borrowed from the cigar industry - to preserve the freshness of their pre-rolls.

Bard, of Custom Cones USA, predicts that humidifiers will become a common feature in the homes of frequent cannabis users, and that manufacturers may start adding expiry dates on their packaging. These innovations are part of a wider trend to improve the overall quality and consistency of pre-rolled products, which will be crucial as competition in the sector intensifies.