Kent, WA--Custom Cones USA, experts in cannabis pre-rolls, packaging, and manufacturing, published a white paper in collaboration with Headset today. The report finds pre-rolls are the fastest-growing product segment in the cannabis industry, with 12% year-over-year growth in the U.S. and a staggering 38% growth in Canada.
According to a Globe Newswire release, the Custom Cones USA team surveyed over 300 companies in the pre-roll industry to compile the report. It examined retail POS data from Headset and their B2B sales data. The study explains why the pre-roll category has become a leading product category for cannabis businesses.
As per the release, significant findings include:
Infused Pre-Rolls are the Largest Growing Segment in the Pre-Roll Industry
In the U.S. and Canada, two of the three fastest-growing individual product segments were pre-rolls, specifically infused/connoisseur pre-rolls, and mixed strain pre-rolls. Infused pre-rolls showed a 1,426% YoY growth in Canada and a 22% YoY growth in the U.S., while hybrid strain pre-rolls saw a 440% YoY growth in Canada and a 63% YoY growth in the U.S.
The Rise of Higher Quality Pre-Rolls at Lower Retail Price Points
The wholesale price of flowers has significantly dropped in recent years, making high-quality flower pre-rolls more affordable. Technological advancements in tabletop cone filling machines and automated pre-roll machines have enabled manufacturers to produce more pre-rolls at lower labor costs, leading to high-quality, affordable pre-rolls driving the category's growth.
Pre-Rolls Show the Least Amount of Price Compression
In Canada, the popularity of infused pre-rolls drives up the average cost of a pre-roll, indicating people's willingness to pay more for potency. The study finds that even though prices for all cannabis products decline over time, pre-rolls show the least price compression, suggesting an opportunity for businesses worried about declining margins.
The release noted that the white paper also predicts pre-rolls could become the largest product segment by 2030, providing qualitative and quantitative data to support this forecast. The research explores various aspects of the pre-roll business, such as the importance of selecting suitable materials, the role of machinery in enhancing profitability, and the diverse types of pre-rolls available on the 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,” said Harrison Bard, Co-Founder, and CEO of Custom Cones USA, as per the release. “We thank our partners at Headset for collaborating on the white paper to provide a wealth of information people can trust to make informed business decisions in our evolving marketplace.”
Learn more in the full Globe Newswire release.