The pre-roll market is exploding - an expert explains why | GreenState

Lifestyle

This weed product is exploding in popularity – find out why

September 17, 2024

Harrison Bard

The cannabis pre-roll market continues to experience rapid growth and innovation in 2024, cementing itself as a key category in the broader cannabis industry. As consumer preferences shift and new markets emerge, pre-rolls have become a preferred product for both casual users and connoisseurs alike. From 2023 to 2024, the pre-roll category saw substantial sales growth, driven by the increasing popularity of infused pre-rolls and multi-pack options. But why, precisely, are they so popular?

Pre-rolls: a booming category

According to a recent white paper published by Custom Cones USA, pre-roll sales have surged and solidly remain the third-largest cannabis category in the U.S., trailing only flower and vapor pens. Between June 2023 and June 2024, pre-rolls generated the highest year-over-year sales increase of any cannabis category, with an 11.89 percent jump. This growth far outpaced other rising categories, like beverages, which saw a 10.97 percent increase, though pre-roll revenue remains 12 times higher.

This explosive growth has been fueled by several factors. The convenience and affordability of pre-rolls make them an attractive option for consumers, while the increasing availability of new product types—such as infused pre-rolls—caters to users seeking more potent experiences. In fact, infused pre-rolls became the top-selling segment in 2023 and continue to dominate in 2024, accounting for nearly 45 percent of overall pre-roll sales.

Expanding markets and increasing sales

As cannabis legalization spreads to new states, the pre-roll market is reaping the benefits. Arizona, Maryland, Missouri, and New York all recently opened their doors to recreational cannabis, adding to the momentum of pre-roll sales nationwide. Newly legalized states are seeing rapid market adoption, with pre-rolls becoming a staple product for both new and experienced cannabis consumers.

From January 2023 to June 2024, pre-rolls generated more than $4.1 billion in sales across 12 tracked U.S. states, with market share climbing from 13.2 percent to 15.9 percent. These figures highlight the growing consumer preference for pre-rolls, driven by their ease of use and availability in both single and multi-pack formats. The market shows no signs of slowing down, with some states just now beginning to allow pre-roll sales as medical cannabis markets mature.

The rise of infused pre-rolls and multi-packs

The rise of the Connoisseur/Infused segment, which combines a concentrate with the flower used in the pre-roll, is a standout trend in the 2024 pre-roll market. From January 2023 to June 2024, the Connoisseur/Infused segment grew by an impressive 61 percent, with sales topping $1.75 billion in this period.

In fact, when pre-roll businesses were asked to rank in order of importance the factors that weighed into consumers’ buying decisions around pre-rolls, they ranked price, potency, and strain as the top three factors, respectively, which may be part of the reason why infused pre-rolls, which have a higher potency than other pre-roll options, are gaining popularity.

At the same time, multi-pack pre-rolls have gained significant traction. Representing nearly 50 percent of the pre-roll market by mid-2024, multi-packs offer both value and convenience to consumers and producers. Pre-roll multi-packs have seen a 43 percent sales revenue increase, with 5-packs of half-gram pre-rolls emerging as the most popular choice.

Looking ahead

As markets get more mature, supply increases, and prices drop for every product type. With cheaper prices for both the raw materials and the final products, the overall quality continues to rise. Consumers are able to get better and better products for cheaper prices, which is driving innovation, and the next big trend is freshness.

Right now, companies are producing as many pre-rolls at a time for as cheaply as possible. But consumers and budtenders realize when those pre-rolls sit on the shelf too long, so brands are starting to better forecast demand and produce products that will sell in a reasonable amount of time.

Brands and dispensaries are also starting to adopt cannabis humidors to keep pre-rolls fresh both before they leave the manufacturing facility and as they sit on dispensary shelves. Just as you see refrigerators a staple in dispensaries to keep hash rosin and other premium concentrates fresh, the next big trend is seeing humidors in dispensaries to keep pre-rolls, especially infused pre-rolls, fresh.

The future of the cannabis industry may be unknown, but pre-rolled cones will continue to be a major component of every new market that opens. As new markets open and consumer preferences evolve, we can expect ongoing innovation in both product offerings and pre-roll machines to help manufacturers. Infused pre-rolls, premium strains, and the move from the traditional “doob tube” to eco-friendly and more premium packaging options are likely to remain major drivers of growth.

With the pre-roll category already a significant contributor to cannabis industry revenues, it’s clear that this market segment will continue to thrive in the years ahead.

*This article was submitted by a guest contributor. The author is solely responsible for its contents.

Harrison Bard Harrison Bard is Co-Founder and CEO of Custom Cones USA, the leading ancillary company in the pre-roll space. Through Custom Cones USA, Harrison has worked with publicly traded LPs and MSOs, leading U.S brands, and companies of every size in between. His expertise in every facet of the Pre-Roll sector, from paper science, to pre-roll manufacturing technology and techniques, to a deep understanding of packaging and compliance regulations, has allowed Custom Cones USA to help create new products, scale brands, and bring more consistency to the pre-roll sector of the industry.