Pre-Rolls - A Rapidly Growing Category - By Custom Cones USA

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Pre-Rolls - A Rapidly Growing Category

Posted Originally on 1/7/2018


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The humble pre-roll. For many of us, the first time we smoked was by someone handing us a joint. Not much about the joint has changed from those times, except that most of us in the industry now call them pre-rolls. The Pre-Roll segment is one of the most exciting and least dynamic categories in the industry. In the edibles and concentrates categories we see hundreds of new products every quarter. The pre-roll category seems stale in comparison and yet, the CEO Marc Lustig, has called the pre-roll category "One of the fastest growing, most sizable market opportunities..."

Pre-Rolls Overall

We agree wholeheartedly with Marc and so do the numbers. As you can see in the chart above as of 2016 the Pre-Roll market makes up around 7.7% of the total market and has been outpacing growth in the edibles market. The chart is taken from a 2016 Frontier Analytics report.

The growth in individual states has been nothing but outstanding. In Q4 2017 Oregon hit 44% Year-Over-Year growth, Washington did the same in Q3 2017. In California between Q2 2017 and Q4 2017 Pre-Roll sales grew 30.9%.

This growth is despite the fact that in most states prices are dropping dramatically. So not only is revenue growing but consumers are purchasing many more pre-rolls. 

Seasonality of Pre-Roll

Pre-rolls are also a seasonal product with a large lift during the summer months (June-Sep). This is because joints are a convenient and disposable way to consume your flower which is perfect for day trips. You can see this in the chart above with the dip in sales post-summer months. 

Infused Pre-Roll Joints

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A great growth category for joints has been the infused pre-roll. Many states have seen this subset of pre-roll grow from less than 1% of the pre-roll market to over 10-15% of the market. During Q3 2017, Washington saw 103% YoY growth. Colorado experienced 193% year-over-year growth. Oregon saw the largest growth YoY with Q4 2017 clocking in at an incredible 587%. As the price for pre-rolls has fallen due to the lower flower prices, pre-roll companies are focusing on differentiation by adding oil to increase potency and adding kief to the outside to create a visually different pre-roll.

Cody Ziering