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LEAFLINK FLASH

Top takeaways from the cannabis industry's wholesale data engine

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July 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. These insights are an important function in the full LeafLink platform, also including LeafLink Payments and LeafLink Logistics. 

To learn more about the value of the full LeafLink platform for your business, request a Brand Demo below. Sellers, get started for free by creating your retailer account in just a few steps.

Highlights

National View: The wholesale cannabis industry, as measured by LeafLink’s GMV (Gross Merchandise Value), declined  4% in June 2022 year-over-year (YoY).* 

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

  • Ogeez (AZ)

  • Jeeter (CA)

  • CHOICE (MI)

  • City Trees (NV)

  • Colorado Cannabis Company (CO)

  • Higher Cultures (OR)

  • In Good Health (MA)

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State View:  Massachusetts continued its YoY growth in June, expanding the fastest at 37% compared with the same period a year ago. 

Categories: Flower saw the largest drop in platform market share (-1.9 percentage points) from May 2022 to June 2022.

Buyers and Sellers: During June 2022, average sales per seller fell 19% YoY, and average spend per buyer fell 1% YoY. 

KEY STATE FOCUS

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CA

-32%

MA

37%

NV

-25%

OR

-16%

AZ

15%

MI

20%

Massachusetts growth continues at slower pace

For June 2022, wholesale cannabis sales measured by transactions on LeafLink’s marketplace (GMV) increased by 2% MoM. 

To help clients better understand state-level trends, we disclose market-specific information for six key states each month. Arizona, Colorado, Michigan and Massachusetts saw positive year-over-year growth in June, with the latter seeing a 37% increase in GMV.

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CATEGORY ANALYSIS

Flower sales decrease; Cartridges rise month-over-month

Flower retained its number 1 category spot this month with 32% of GMV during June 2022; however, it took a 3% decrease in sales and a 1.9% decrease versus the prior month in market share, the latter also being the largest decrease in platform share among all LeafLink categories for the month of June.

Conversely, Cartridges  saw the largest growth in platform market share at 1.3% month over month. 510 Thread Cartridges had the largest subcategory share percentage of all LeafLink sales, at 16.4%.

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RETAILER SEGMENTATION VIEW

Comparing buyer audiences in Nevada vs. Oregon

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 NV retailers in the 2nd quintile spend 8% more than those in the same quintile in OR, the difference in order frequency ends up making this group of retailers worth 82% more on a monthly basis in Oregon.

MARKET SATURATION

Opportunity-seeking producers should look at Cartridges in Oregon and Pre-Rolls in Nevada

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 and Ingestibles in Nevada were the most competitive category, sold by 58% of brands and representing 18% of all sales in NV for the month of June. The least competitive category was Topicals in Oregon, only being sold by 6% of brands and representing 1% of sales volume.

Cartridges take the lead in both Nevada and Oregon in respect to share sale, at 32% and 25%, respectively. In Oregon, only 23% of brands sold cartridges during the month of June, representing an opportunity for brands looking to expand their product line. Similarly within Nevada, Pre-Rolls account for 20% of all sales within the state, yet only 33% of brands actively sold them in June.
 

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BRAND PERFORMANCE

Transaction volume is up by .3% MoM

In June, we saw a 58/42 split between brands seeing an increase/decrease 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 increased by 0.3% MoM.

The fastest growing brands in each core state were Ogeez (AZ), Jeeter (CA), Colorado Cannabis Company (CO), CHOICE (MI), City Trees (NV), Higher Cultures (OR), and In Good Health(MA). 

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BUYER PERFORMANCE

Retailers spent 7% less in June 2022 vs. June 2021

51% of buyers increased spend at this time. Buyers who did reduce their spend decreased it by 22%. Average transaction volume per buyer decreased by 1% MoM and 7% compared to the same period last year.

PRICING ANALYSIS

Concentrates reach all time highs

Average listed Flower prices*** increased in June, averaging a 2% increase each week to end the month at $1,143 per pound, 8.1% above where it ended in May, and down 3% relative to June 2021. Michigan and Arizona saw the largest increases state-wise, both increasing 2% on average weekly during the month of June compared to May.

Average listed Concentrates prices** saw an increase in June, reaching an all time high of $63.38 per gram (43% higher than June 2021), rising 1.4% each week in June. 
 

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*In each year, 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.