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LEAFLINK FLASH

Top takeaways from the cannabis industry's wholesale data engine

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February 2022

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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.

FEBRUARY 2022 FLASH

Highlights

National View: The wholesale cannabis industry, as measured by LeafLink’s GMV (Gross Merchandise Value), grew 28% in January 2022 year-over-year (YoY).* 

The fastest growing brands in each of our seven key states in January were:

  • High Grade (AZ) 

  • Jeeter (CA)

  • Wana Brands (CO) 

  • CHOICE (MI)

  • Cannapunch (NV)

  • Growth Rogue (OR)

  • Cultivate (MA)

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State View: Massachusetts grew the fastest at 178.5% compared with the same period a year ago. 

Categories: Concentrates saw the largest drop in platform market share (-2.84 percentage points) from December 2021 to January 2022.

Buyers and Sellers: During January 2022, average sales per seller fell 5.9% YoY, and average spend per buyer grew 4.2% YoY. 

KEY STATE FOCUS

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CA

3.3%

MA

178.5%

NV

9.8%

CO

-2.9%

OR

0.0%

AZ

-6.8%

MI

77%

Massachusetts continues strong year-over-year growth

For January 2022, wholesale cannabis sales measured by transactions on LeafLink’s marketplace (GMV) increased by 28% 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, Nevada, Michigan, California, and  Massachusetts saw positive year-over-year growth, with the latter seeing 178.5% growth over these periods.

CATEGORY ANALYSIS

Edibles & Ingestibles increase market share

Flower retained its number 1 spot this month with just over 33% of sales during January 2022, helped by a 0.3% increase in sales and a 1 percentage point increase in market share.

Edibles & Ingestibles saw the largest increase this month, gaining 1.84 percentage points month over month, the first time the category led in share growth since October 2021. The 18.7% overall market share marks a 0.3 percentage point decrease over the same period last year.
 

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RETAILER SEGMENTATION VIEW

Comparing Buyer Audiences in Missouri vs. Massachusetts

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 understanding of competitive trends across states. 

 

For example, although MA retailers in the 4th quintile spend 26% more than those in the same quintile in MO, the difference in order frequency ends up making this group of retailers worth a third of retailers in the same quintile in MO.

MARKET SATURATION

Opportunity-seeking producers should look at Flower in Missouri

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. 

January 2022 marked the second month in a row that either Missouri or Massachusetts contained the most or least competitive categories. In Massachusetts, Edibles & Ingestibles was the most competitive category making up only 28% of sales but sold by 74% of brands.

In Missouri, for the 6th month in a row, Flower was the least competitive category, being sold by 33% of brands but making up 55% of sales. Flower was the least competitive category in both Missouri and Massachusetts for January 2022.
 

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BRAND PERFORMANCE

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Transaction volume is down 5.9% YoY

In January, we saw a 40/60 split between brands seeing an increase in sales. Median brand growth was approximately 28% month-over-month (MoM), while those that declined saw a median reduction of 20%. Overall average transaction volume per brand decreased by 4% MoM during this month and decreased 5.9% compared to the same period last year.

The fastest growing brands in terms of same-store sales in each core state were High Grade (AZ), Jeeter (CA), Wana Brands (CO), CHOICE (MI), CannaPunch (NV), Grown Rogue (OR), and Cultivate (MA). 

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BUYER PERFORMANCE

Retailers spent 4.2% more in January 2022 vs. January 2021

Buyer spend had a balanced ratio when looking at increase/decrease in spend. 50% of buyers increased spend at this time. Those buyers who did reduce their spend decreased it by 24%. Average transaction volume per buyer decreased by 8.4% MoM and increased by 4.2% compared to the same period last year.

PRICING ANALYSIS

Prices for Concentrates  continue to decrease

Average listed Flower prices***  remained steady during January, averaging a 0.75% increase each week to end the month at $1,129.12, 3% higher than at the end of December. Oregon saw the largest increase during this period, ending the month 7% higher than December.

Average listed Concentrates prices** saw a more pronounced decline this month, averaging a 3% decrease each week. This decline erased growth seen in previous months, with the average price ending 8.7% lower than the previous high.
 

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*In each of 2019, 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.  

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About LeafLink

LeafLink is the unified B2B cannabis platform, connecting thousands of leading brands and retailers for streamlined cannabis commerce. Our suite of real-time data and analytics tools empower cannabis businesses to stay ahead of the competition and grow with speed. To learn how our customizable analytics products can help your business optimize sales performance, request a demo.