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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SEPTEMBER 2020 FLASH
National View: The wholesale cannabis industry, as measured by LeafLink’s GMV (Gross Merchandise Value), grew 163% in August 2020 year-over-year (YoY).*
On a same store sales basis, GMV grew 49% YoY in August 2020. The top performing brands in August were:
Timeless Vapes (AZ)
Raw Garden (CA)
Wana Brands (CO)
Terpene Tanks (MI)
State View: Michigan grew the fastest at 112% compared with the same period a year ago.
Categories: Flower gained the most share nationally (+0.3 percentage points) from July to August 2020.
Buyers and Sellers: During August 2020, average sales per seller grew 55% YoY, and average spend per buyer grew 53% YoY.
KEY STATE FOCUS
Michigan market doubles in size
For the month of August 2020, wholesale cannabis sales as measured by transactions on LeafLink’s marketplace (GMV) increased by 163% YoY.
To help clients gain a better understanding of both national and local opportunities and trends, we disclose market-specific information for six key states each month. Out of those disclosed this month, Michigan experienced the largest YoY increase. This market’s 112% increase in GMV was driven by the addition of adult-use sales beginning in December 2019. Nevada, however, saw a decline of 8% YoY as tourism in the state continued to lag due to COVID-19. Colorado saw the largest increase in overall transaction volume, experiencing month-over-month (MoM) growth of 5%.
Flower dominates marketplace sales
For the seventh month in a row this year, Flower led in market share in August 2020. Packaged Flower leads within the category, making up 20% of all marketplace sales. Second to Flower, Cartridges saw the largest growth in total sales, increasing 6% MoM, while Edibles & Ingestibles saw the largest drop MoM in market share (-0.6 percentage points). This decline was led by Tinctures, which fell by 5% in MoM.
Nevada’s Edibles & Ingestibles market is highly competitive
Each month, we visualize the relative competitiveness of 7 categories in key states to help clients best position themselves for the future and take advantage of opportunities to capture market share.
In August 2020, Edibles & Ingestibles in Nevada were the most competitive category, with 58% of brands selling the category but only making up 17% of sales. The least competitive category was Cartridges in Michigan, where 21% of brands in the state made up 30% of the market’s Cartridge sales.
Transaction volume is up by over 55% YoY
In August, we observed a nearly 50/50 split between brands that saw an increase in sales during the month and brands that saw a decline. Median brand growth was approximately 24% MoM, while those that declined saw a median decrease of 21%. Overall average transaction volume per brand fell by 1% MoM during this month, but increased by 55% when compared to the same period last year.
The top brands in terms of same-store sales growth in each core state were Timeless Vapes (AZ), Raw Garden (CA), Wana Brands (CO), Terpene Tanks (MI), Remedy (NV), and Hush (OR).
Retailers spent 53% more In August 2020 vs August 2019
We observed a similar distribution when analyzing August 2020 buyer spend. 51% of buyers increased spend at this time, and the median growth in spending of 30% MoM. Those buyers who did reduce their spend decreased it by 21%. Average transaction volume per buyer increased by 1% MoM, and grew over 53% when compared to the same period last year.
Concentrates are getting more expensive
Average listed Flower prices*** peaked at $1,257 during August 2020, down from a 2020 high of $1,291 during the month leading up to 4/20.
Average listed Concentrates prices** rose consistently in August, increasing nearly 2% per week during the month. At the end of August, the average price of Concentrates was $51.07, a 2% 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.
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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