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.
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JANUARY 2022 FLASH
Highlights
National View: The wholesale cannabis industry, as measured by LeafLink’s GMV (Gross Merchandise Value), grew 44% in December 2021 year-over-year (YoY).*
When analyzing brands on LeafLink starting prior to January 1, 2020, GMV fell 4% YoY in December 2021. The top-performing brands for each of our seven key states in December were:
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DRIP Oils + Extracts (AZ)
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Jeeter (CA)
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Colorado Cannabis Company (CO)
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CHOICE (MI)
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Cannapunch (NV)
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Higher Cultures (OR)
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Cultivate (MA)
State View: Massachusetts grew the fastest at 812% compared with the same period a year ago.
Categories: Cartridges saw the largest drop in platform market share (-1.6 percentage points) from November 2021 to December 2021.
Buyers and Sellers: During December 2021, average sales per seller grew 1% YoY, and average spend per buyer grew 6% YoY.
KEY STATE FOCUS
CA
-26%
MA
812%
NV
23%
CO
-9.9%
OR
-29%
AZ
3%
MI
-6.8%
Massachusetts continues strong year-over-year growth
For December 2021, wholesale cannabis sales measured by transactions on LeafLink’s marketplace (GMV) increased by 44% 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, Colorado, Nevada, and Massachusetts saw positive year-over-year growth, with the latter seeing 812% growth over these periods.
CATEGORY ANALYSIS
Concentrates gain market share month-over-month
Flower retained its number 1 spot this month with 31.8% of GMV during December 2021, thanks to a 7.4% increase in sales. Concentrates saw the largest increase in market share this month, gaining 2.2 percentage points month over month, the second month in a row this category led market share increase. The 16.6% overall market share marks a 3 percentage point decrease over the same period last year.
Conversely, Cartridges saw the largest drop in platform market share, dropping -1.6 percentage points MoM to finish at 23.5% market share.
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 5th quintile spend 32% more than those in the same quintile in MO, the difference in order frequency ends up making this group of retailers worth 610% more on a monthly basis in Missouri.
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.
December 2021 was the 5th month in a row that Missouri contained the most and least competitive categories, with Edibles & Ingestibles and Flower ranking as the most and least competitive categories, respectively. Edibles & Ingestibles were sold by 67% of brands but only comprised 19% of sales and Flower was sold by 30% of brands but accounted for 58% of sales."
In Massachusetts, Edibles & Ingestibles and Flower were the most and least competitive categories respectively. Edibles & Ingestibles in Massachusetts was the second most competitive category across all regions, as they were sold by 68% of brands but only accounted for 24% of sales. By contrast, Flower was the second least competitive category throughout all states, being sold by 24% of brands but accounting for 45% of sales.
BRAND PERFORMANCE
Transaction volume per brand is flat YoY
In December, we saw a 45/55 split between brands seeing an increase in sales. Median brand growth was approximately 23% month-over-month (MoM), while those that declined saw a median reduction of 20%. Overall average transaction volume per brand increased by 2% MoM during this month and decreased by .5% compared to the same period last year.
The top brands in each core state were DRIP Oils + Extracts (AZ), Jeeter (CA), Colorado Cannabis Company (CO), CHOICE (MI), CannaPunch (NV), Higher Cultures (OR), and Cultivate (MA).
BUYER PERFORMANCE
Retailers spent 20% more in December 2021 vs. December 2020
Buyer spend had a similarly 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 25%. Average transaction volume per buyer increased by 9% MoM and 20% compared to the same period last year.
PRICING ANALYSIS
Price growth for concentrates slows
Average listed Flower prices*** remained steady during December, averaging a .4% increase each week to finish the month at $1,093, 1.6% below where they ended in November. Arizona saw the largest increase during this period, ending the month 2% higher than November.
Average listed Concentrates prices** saw a slight decrease this month, averaging a .4% decrease each week, the first average price decrease since June 2021.
*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.
**Same store sales refers to the comparison of GMV for the same brands in the 2020 period to GMV for the same brands in the 2021 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.