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.
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OCTOBER 2020 FLASH
National View: The wholesale cannabis industry, as measured by LeafLink’s GMV (Gross Merchandise Value), grew 118% in September 2020 year-over-year (YoY).*
On a same store sales basis, GMV grew 26% YoY in September 2020. The top performing brands in September were:
Timeless Vapes (AZ)
Pacific Stone (CA)
Peregrine Manufacturing (MI)
State View: Michigan grew the fastest at 342% compared with the same period a year ago.
Categories: Flower gained the most share nationally (+1.82 percentage points) from August to September 2020.
Buyers and Sellers: During September 2020, average sales per seller grew 57% YoY, and average spend per buyer grew 49% YoY.
KEY STATE FOCUS
Michigan market growth accelerates
For the month of September 2020, wholesale cannabis sales as measured by transactions on LeafLink’s marketplace (GMV) increased by 118% YoY.
To help clients gain a better understanding of state-level trends, we share market-specific information for six key states each month. Out of those featured this month, Michigan experienced the largest YoY increase of 342%. The increase in GMV was driven by an increase in order volume and average order value from existing brands. This follows Michigan’s 112% YoY growth in August propelled by the addition of adult-use sales beginning in December 2019. Nevada was flat YoY vs. a decline of 8% YoY in August. Oregon saw the largest increase in overall transaction volume, experiencing month-over-month (MoM) growth of 4%.
More retailers are ordering Flower
Flower led the market again during September 2020, with the Packaged Flower subcategory maintaining 20% of all marketplace sales. Second to Flower, Pre-Rolls saw the largest growth in total sales, increasing 7% MoM, while Edibles & Ingestibles saw the largest drop MoM in market share (-1.7 percentage points). This decline was led by Gummies, which saw a 20% MoM decrease in sales.
Arizona’s Edibles & Ingestibles market is highly competitive
Each month, we visualize the relative competitiveness of 7 categories in key states to help cannabis brands best position themselves for the future and take advantage of opportunities to capture market share.
In September 2020, Edibles & Ingestibles in Arizona was the most competitive category, with 54% of brands selling the category while only making up 26% of sales. Conversely, in Oregon, Flower was the least saturated, with only 36% of brands selling the category while making up 39% of sales in the market.
Transaction volume is up by over 57% YoY
In September, we saw a 45/55 split between brands seeing an increase in sales, with the majority seeing a decrease during the month. Median brand growth was approximately 25% MoM, while those that declined saw a median decrease of 20%. Overall average transaction volume per brand increased by 2% MoM during this month and increased 57% when compared to the same period last year.
The top brands in terms of same-store sales growth in each of the key states we focused on this month were Timeless Vapes (AZ), Pacific Stone (CA), TasteBudz (CO), Peregrine Manufacturing (MI), Cannavative (NV), and oreKron (OR).
Retailers spent 49% more in September 2020 vs September 2019
We observed a similar distribution when analyzing September 2020 buyer spend. 47% of buyers increased spend at this time, and the median growth in spending of 28% MoM. Those buyers who did reduce their spend decreased it by 25%. Average transaction volume per buyer increased by 1% MoM, and grew over 49% when compared to the same period last year.
Flower prices are stabilizing
Average listed Flower prices*** peaked at $1,226 during September 2020, down from a 2020 high of $1,291 during the month leading up to 4/20. In California specifically, Flower pricing peaked in August and began to decline through September.
Average listed Concentrates prices** dropped consistently in September, decreasing nearly 2% per week during the month. At the end of September, the average price of Concentrates was $43.95, a 15% dip from the 2020 high seen in June.
*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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