Cannabis Pre-Roll Industry Insights | 2021
As more states legalize cannabis for adults, the pre-roll industry will become a playground for activities that attract more players, more investment, and more automation. The industry is evolving to meet the new world of rising demand from smart and savvy consumers educated about what they want.
In 2020, pre-roll sales in the US recreational cannabis delivery market increased by 5.9% year-on-year from $70.4 million in 2019 to $11.2 billion in 2020. This surpassed the overall market, which grew 5.42% over the same period, according to data from cannabis data firm Headset. A report by Custom Cone USA surveyed more than 130 pre-rolled companies to understand the industry’s current state better and consulted with Cannabis data company Headset to collect data from the industry’s cash registers to understand better.
Cannabis Industry Deemed “Most Compeitive in 2021”
According to surveys, less than 40% of the 711 companies surveyed who have been in business for at least three years describe themselves as brand new. 95.7% of the pre-roll companies surveyed stated that they plan to expand their business in the future. While some are still in the early stages of legalizing cannabis in their state, the broader picture is that new and energetic businesses are being encouraged by the new state legalization. This energy and enthusiasm is reflected in the hunger for larger plants, product diversity, industrial partnerships and general expansion plans.
Although the top three companies are large compared to the rest of the industry, they are also among the youngest. Lowell Herb Co., for example, was founded in 2017.
The majority of respondents represented companies with fewer than 25 employees and multi-purpose facilities under 5,000 square meters. According to the survey by Custom Cone USA, pre-roll companies tend to sell pre-roll products alongside other cannabis products such as flowers and concentrates. Most of the respondents produce on average less than 5000 rolls per month.
Compared to a year ago, headsets began tracking sales data, the top product segments in the pre-roll category are hybrids and single strains. The segment to watch is the connoisseur-infused segment, which, according to the headset, includes pre-rollers infused with cannabis concentrates for added effectiveness. This segment is rising, with 12.7% of pre-roll sales in 2018 and 31.9% of pre-roll sales in 2021 (YTD).
Mary Daze Enter the Pre-roll World
In the world of pre-rolls, one rules. Despite the growth of small-format dog handlers, hemp, unrefined brown roll paper, and custom cones, the USA Survey indicates that most pre-rolled one-gram cones are made from fine white paper. There is also a shift in the category of pre-rollers towards multipack products that contain more than a single pre-roll. For example, sales of multipack rolls increased by 69.4% from February 2020 to February 2021, while sales of single pre-roll rolls increased over the same period by 18.1%, according to those reports.
When respondents were asked to talk about their production processes before the roll, it became clear that automation had increased and producers were expanding their production to meet demand. The survey also paints the same picture: respondents are evenly distributed among single-pre-roll and multipack, although individual pre-roll is still used to dominate. The increasing variety of packaging indicates an increase in multipack production.
The rest is packaging, which is becoming more critical than in the past. A surprising number of companies using hand-held screening machines and mixers need to start automating their processes. Cone filling machines are also becoming mandatory. Industrial mills are the key to breaking down cannabis products and packaging. Companies that want to switch to pre-roll scale need industrial grinding machines.
Mary Daze, founded in 2020, is excited to announce its first line of products this coming holiday season. As they already provide third-party brands, their licenses allow them to produce and distribute their bulk items and products. Their Mini Mary’s line comes with multiple top-shelf fresh flower pre-rolls encased in an old-fashioned cigarette packet. They are releasing multiple types to cater to all, for example, their BLACK and RED EDITION exotic line/ infused line, and more. Seeing the demand for packs of pre-rolls, they took to the drawing boards and created a line that captures a retro vibe and a bit of familiarity. As they begin to announce their products to the world of cannabis, they want to focus a lot on supporting the “Extreme Sport” lifestyle by providing a fun and lively community, removing the stigma of cannabis, and capturing those worldwide that love sports marijuana. The team plans to release them before the new year! For more, visit the best Orange County cannabis delivery service at www.MaryDaze.com.
