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LEAFLINK FLASH

Top takeaways from the cannabis industry's wholesale data engine

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June 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.

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).* 

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

  • Sublime Brands (AZ) 

  • Jeeter (CA)

  • Leiffa (CO)

  • Primitiv (MI)

  • City Trees (NV)

  • Grown Rogue (OR)

  • 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. 

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.

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.

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. 

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.

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.

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.

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.