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LEAFLINK INSIGHTS FLASH

July 2021

Top takeaways from the wholesale cannabis industry’s data engine

ABOUT THE FLASH

Each month, LeafLink Insights will share data-driven insights into some key topics like category sales, state by state performance, and pricing analysis. These takeaways are meant to help you better understand where the industry is headed and what kinds of opportunities exist for your business.

For a deep dive into our customizable, single-source analytics products, please request a demo.

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JULY 2021 FLASH

Highlights

National View: The wholesale cannabis industry, as measured by LeafLink’s GMV (Gross Merchandise Value), grew 61% in June 2021 year-over-year (YoY).* 

On a same-store sales basis, GMV grew 7% YoY in June 2021. The top-performing brands in June were:

  • Item 9 Labs (AZ)

  • Jeeter (CA)

  • Spectra (CO)

  • Redbud Roots (MI)

  • CannaPunch (NV)

  • Million Elephants (OR)

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State View: Nevada grew the fastest at 68% compared with the same period a year ago. 

Categories: Concentrates saw the largest drop in platform market share (-2 percentage point) from May 2021 to June 2021

Buyers and Sellers: During June 2021, average sales per seller grew 13% YoY, and average spend per buyer grew 16% YoY. 

KEY STATE FOCUS

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CA

-23%

MI

-10%

NV

68%

CO

-6%

OR

-14%

AZ

22%

Nevada sees largest year-over-year growth 

For June 2021, wholesale cannabis sales measured by transactions on LeafLink’s marketplace  (GMV) increased by 61% YoY. 

To help clients better understand state-level trends, we disclose market-specific information for six key states each month. Out of those disclosed this month, only Arizona and Nevada saw positive year-over-year growth, with the latter seeing 68% growth over these periods.

CATEGORY ANALYSIS

Flower continues to see market share growth

Flower kept its number 1 spot this month with close to 37% of GMV during June 2021, while also seeing a 2.7  percentage point increase in market share, continuing the upward trajectory seen over the previous four months.

Conversely, Concentrates saw the largest dip this month, losing 2.3 percentage points of market share. This was led by the Shatter subcategory, which alone lost just over a full percentage point in market share.

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RETAILER SEGMENTATION VIEW

Comparing Buyer Audiences in Nevada vs. Oklahoma

Using the same states highlighted in the competition section also gives us a good view into how a more holistic understanding of a brand’s retailers can impact their business. While there are multiple groups that highlight this, the greatest relative difference comes when looking at retailers in the 3rd quintile in our example. While retailers in this quintile in the state of OK see a 14% larger AOV on average, the difference in order frequency makes the retailers in MI in this quintile nearly 96% more valuable to brands.

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MARKET SATURATION

Opportunity-seeking producers should look at Flower in Oklahoma

Each month, we visualize the relative competitiveness (as measured by the distance from the trendline in the charts below) of 7 categories in key states to help clients best position themselves for the future and take advantage of opportunities to capture market share.

June 2021 saw Edibles & Ingestibles continuing to be the most heavily over-indexed, the 11th time it has been so over the last 12 months viewed, with 55% of brands selling the category that makes up 14% of sales in the state. 

 

In contrast, Flower in Oklahoma was the most under-indexed, making up 30% of sales in the state while only being sold by 24% of brands operating. This marked the first time the state showed up as top-ranked in either of the metrics reported.
 

BRAND PERFORMANCE

Transaction volume is up by over 13% YoY

In June, we saw a 60/40 split between brands seeing an increase in sales. Median brand growth was approximately 33% month-over-month (MoM), while those that declined saw a median reduction of 18%. Overall average transaction volume per brand increased by 7% MoM during this month and increased 13% compared to the same period last year.


The top brands in terms of same-store sales growth in each core state were Item 9 Labs (AZ), Jeeter (CA), Spectra (CO), Redbud Roots (MI), CannaPunch (NV), and Million Elephants (OR). 

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BUYER PERFORMANCE

Retailers spent 16% more in June 2021 vs. June 2020

Buyer spend had the same ratio of 60/40 when looking at increase/decrease in spend. 60% of buyers increased spend at this time, with a median growth of 31% in MoM spending. Those buyers who did reduce their spend decreased it by 19%. Average transaction volume per buyer increased by 8% MoM and 16% compared to the same period last year.

PRICING ANALYSIS

Flower prices fall slightly

Average listed Flower prices***  fell slightly during June, averaging a 0.6% decline each week to end the month at $1,186, 2.6% below where it ended in May.  This decline was mostly led by Oregon, which ended the month 18% below the final price seen in May.

Average listed Concentrates prices** remained within historical norms during the month, averaging a 0.9% decline each week. This marks the fifth consecutive month of steady decline for the category.

*In each of 2019 and 2020, we lock the number of brands on January 1st of each year and measure GMV for these brands only.

**Same store sales refers to the comparison of GMV for the same brands in the 2019 period to GMV for the same brands in the 2020 period.

***Flower pricing is in lbs and concentrates is in grams.

Gross Merchandise Value (GMV) is defined as unit price times quantity sold. This is a barometer for overall volume of activity on our marketplace.  

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About LeafLink Insights

LeafLink Insights is the intelligence engine of the cannabis industry. By connecting brands, retailers, investors, and other industry participants to real-time first-party data, LeafLink powers smart and rapid industry growth. To learn how our suite of customizable analytics products can help your business optimize sales performance, request a demo.

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