ABOUT THE FLASH
Each month, LeafLink will share data-driven insights into key topics like category sales, state-by-state performance, and pricing analysis. These takeaways, from our suite of real-time data and analytics tools, are meant to help you better understand where the industry is headed and capitalize on the most effective opportunities to accelerate your business growth.
For a deep dive into our customizable, single-source analytics products, please request a demo.
Highlights
National View: The wholesale cannabis industry, as measured by LeafLink’s GMV (Gross Merchandise Value), grew 20% in March 2022 year-over-year (YoY).*
The fastest growing brands in each of our seven key states in March were:
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Sublime Brands (AZ)
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Jeeter (CA)
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Colorado Cannabis Company (CO)
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STIIIZY (MI)
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CannaPunch (NV)
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Grown Rogue (OR)
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Cultivate (MA)
State View: Massachusetts grew the fastest at 133% compared with the same period a year ago.
Categories: Edibles & Ingestibles saw the largest drop in platform market share (-1.22 percentage points) from February 2022 to March 2022.
Buyers and Sellers: During March 2022, average sales per seller fell 5% YoY and average spend per buyer grew 11% YoY.
KEY STATE FOCUS
CA
-10.7%
MA
133%
NV
9.5%
CO
1.5%
OR
-4.4%
AZ
5%
MI
53%
Massachusetts continues strong year-over-year growth
For March 2022, wholesale cannabis sales measured by transactions on LeafLink’s marketplace (GMV) increased by 20% YoY.
To help clients better understand state-level trends, we disclose market-specific information for seven key states each month. Out of those disclosed this month, Arizona, Colorado, Michigan, Nevada and Massachusetts saw positive year-over-year growth, with the last expanding 133%.
CATEGORY ANALYSIS
Increased market share for Cartridges
Flower retained its number 1 spot with 33% of GMV during March 2022 thanks to a 32% increase in sales, despite a 0.43 percentage point dip in market share, the latter being the largest drop in share since the start of the year.
Conversely, Cartridges saw the largest increase this month, gaining 1.4 percentage points month over month, the first time the category led in share growth since September 2021. The 24.6% overall market share marks a 1.5 percentage point increase over last month.
RETAILER SEGMENTATION VIEW
Comparing Buyer Audiences in Missouri vs. Alaska
Comparing states by their average order value quintile provides a more holistic understanding of a brand’s wholesale purchasers.
When combined with Average Orders per Month, we obtain an even stronger view of competitive trends across states.
For example, although MA retailers in the 4th quintile spend 19% more than those in the same quintile in MO, the difference in order frequency makes this group of retailers worth 368% more on a monthly basis in Missouri.
MARKET SATURATION
Opportunity-seeking producers should avoid Edibles & Ingestibles in Massachusetts
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.
Edibles & Ingestibles in Massachusetts was the most competitive category overall, making up 24% of all sales while being sold by 77% of all brands. This is the fourth month in a row that Edibles & Ingestibles were the most competitive category in Massachusetts.
Flower in Missouri was once again the least competitive category overall, for the 8th month in a row. In fact, every other category in Missouri has been competitive except for Flower. Flower in Missouri makes up 60 percent of the sales but only sold by 28 percent of brands.
BRAND PERFORMANCE
Transaction volume is down by 5% YoY
In March, we saw a 75/25 split between brands seeing an increase in sales. Median brand growth was approximately 39% month-over-month (MoM), while those that declined saw a median reduction of 18%. Overall average transaction volume per brand increased by 33% MoM during this month and decreased 5% compared to the same period last year.
The fastest growing brands in each core state were Sublime Brands (AZ), Jeeter (CA), Colorado Cannabis Company (CO), STIIZY (MI), CannaPunch (NV), Grown Rogue (OR) and Cultivate (MA).
BUYER PERFORMANCE
Retailers spent 11% more in March 2022 vs. March 2021
Buyer spend had a similar ratio when looking at increase/decrease in spend. 71% of buyers increased spend at this time. Buyers who reduced their spend decreased it by 17%. Average transaction volume per buyer increased by 33% MoM and 11% compared to the same period last year.
PRICING ANALYSIS
Concentrates prices reach new high
Average listed Flower prices*** remained steady during March, averaging a 0.2% decrease each week to end the month at $1,081, 0.74% below the price at the end of February. Michigan saw the largest increase during this period, finishing the month .01% higher than February.
Average listed Concentrates prices** saw a more pronounced increase this month, growing 4.6% on average each week. This growth erased dips seen in previous months, with the average price ending 12% higher than the previous high.
*In each of 2020, and 2021, we lock the number of brands on January 1st of each year and measure GMV for these brands only.
***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.