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 5% in May 2022 year-over-year (YoY).*
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The fastest growing brands in each of our key states in May were:
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Sublime Brands (AZ)
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Jeeter (CA)
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Leiffa (CO)
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Primitiv (MI)
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City Trees (NV)
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Grown Rogue (OR)
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In Good Health (MA)
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State View: Massachusetts continues its year-over-year growth again this month, growing the fastest at 43% compared with the same period a year ago.
Categories: Cartridges saw the largest drop in platform market share (-1.5 percentage points) from April 2022 to May 2022.
Buyers and Sellers: During May 2022, average sales per seller fell 19% YoY, and average spend per buyer fell 1% YoY.
KEY STATE FOCUS
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CA
-13%
MA
43%
NV
4%
OR
-7%
AZ
32%
MI
20%
Michigan and Massachsetts continue strong growth in May
For May 2022, wholesale cannabis sales measured by transactions on LeafLink’s marketplace (GMV) grew by 5% YoY.
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To help clients better understand state-level trends, we disclose market-specific information for six key states each month. Arizona, Michigan, Nevada and Massachusetts saw positive year-over-year growth in May, with the latter seeing an 43% increase in GMV.
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CATEGORY ANALYSIS
Flower sales increase; Cartridges and Edibles decline
Flower retained the number one spot this month with 34.6% of GMV during May 2022, with a 1% increase in sales and a 2.2% increase in market share, the latter being the largest growth since June of 2021.
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Conversely, Cartridges saw the largest drop in platform market share (-1.5%) from April 2022 to May 2022. Edibles also saw a decrease of 1% MoM.
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RETAILER SEGMENTATION VIEW
Comparing buyer audiences in Massachusetts vs. Nevada
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 view of competitive trends across states.
For example, although MA retailers in the 4th quintile spend 23% more than those in the same quintile in NV, the difference in order frequency results in this group of retailers generating 42.4% more volume on a monthly basis in Nevada.
MARKET SATURATION
Opportunity-seeking producers should look at Accessories in MA
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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Edibles and Ingestibles in Massachusetts were the most competitive category, sold by 72% of brands and representing 22% of all sales in MA for the month of May. Nevada also saw competition in this category within the month, being sold by 62% of brands and representing 14% of all sales in the state.
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Massachusetts also has the least competitive category for the month in Accessories, being sold by only 13% of brands - yet making up 31% of sales for the state.
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BRAND PERFORMANCE
Transaction volume is down by 19% YoY
In May, we saw a 44/56 split between brands seeing an increase/decrease in sales. Median brand growth was approximately 25% month-over-month (MoM), while those that declined saw a median reduction of 20%. Overall average transaction volume per brand decreased by 8% MoM and 19% compared to the same period last year.
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The fastest growing brands in each core state were Sublime Brands (AZ), Jeeter (CA), Leiffa (CO), Primitiv (MI), City Trees (NV), Grown Rogue (OR), and In Good Health(MA).
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BUYER PERFORMANCE
Retailers spent 1% less in May 2022 vs. May 2021
Buyer spend had a similarly balanced ratio when looking at increase/decrease in spend, with 48% of buyers increasing spend at this time. Buyers who did reduce their spend decreased it by 24%. Average transaction volume per buyer decreased by 4% MoM and 1% compared to the same period last year.
PRICING ANALYSIS
Flower steady; Concentrates prices continue to rise
Average listed Flower prices*** remained steady during May to end the month at $1,059 per pound, 1.3% above the end of April. Massachusetts saw the largest increase once again during this period, ending the month 14% higher than April.
Average listed Concentrates prices** saw a slight increase in May, rising 0.2% each week.
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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.
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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.