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).*
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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.
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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.
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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.
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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."
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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.
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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.
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Gross Merchandise Value (GMV) is defined as unit price times quantity sold. This is a barometer for overall volume of activity on our marketplace.