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Canada’s Fastest Growing Cannabis Product

Canada's cannabis industry is seeing interesting shifts in consumer favourites. Read more about the product that's ruling dispensaries!

Rolling Into a New Era: Canada Favourite Cannabis Product

In Canada’s cannabis market, one product unexpectedly outshined all others with a massive 37% increase in sales from 2022 to 2023. 

Pre-rolls shot into second place trailing just behind dry flower as the most sold cannabis product in Canadian retail dispensaries. Adapting to this new trend is crucial for cannabis business owners to meet the demands of consumers and build a foundation of long-term success in Canada’s cannabis industry. 2024 marks year six of legal cannabis in Canada. Each year brings a variety of new trends that subsequently shape the cannabis landscape for the following year, and it’s no doubt that 2024 will be shaped by the takeover of pre-roll sales.

With that in mind, here’s everything you need to know about Canada’s fastest growing cannabis product.

The Cannabis Cake on the page about pre-rolls in Canada

Why Pre-Rolls?

While Canada’s cannabis market has slowed down, there is still plenty of opportunity to start a successful cannabis business in Canada. Recreational cannabis sales exceeded 5 billion Canadian dollars in 2023, marking an increase of over 12% from 2022. Pre-rolls have played a significant part in this increase, as they now account for about one-third of all cannabis sales in Canada.

As a result, the Canadian cannabis market has also seen a 38% increase in pre-roll brands. This shows that businesses are adapting to the consumer demand, but there is still a need for product innovation.

As a product ages, the demand may lessen, and brands will be left in the dust. To avoid this, cannabis brands need to find ways to continue adding to the product by redefining what is considered a pre-roll. Infused pre-rolls are an instance of successful innovation that has since been a massive contributor to the product’s overall success. In fact, infused pre-rolls are accounting for over one-third of the total amount of pre-rolls sold in Canada.

Innovation sparks new trends that will keep the cannabis market healthy and profitable for cannabis businesses and brands. However, there is also a lot of value in understanding what shouldn’t be changed.

Although there aren’t any statistics for why consumers have taken a liking to pre-rolls in Canada, it’s fair to assume that convenience is a significant factor. This is a trend that’s been mirrored across a variety of industries like online shopping, streaming services, and many others.

Often, convenience can be chalked up as ‘getting more for doing less’. This phenomenon has resonated with Canadian cannabis consumers, as data shows that 83% of consumers purchasing pre-rolls in Canada are opting to buy multi-packs over singles, and 36% of consumers want to buy products containing at least 1.5 grams of cannabis. In other words, consumers are buying multiple pre-rolls packaged together to save time that would be spent rolling their own flower, while also saving trips to their local dispensary, and even saving money.

In Canada, pre-rolls are currently holding the third lowest average item price, just above edibles, and just below capsules. The average item price for pre-rolls is heavily influenced by Canadian consumers’ admiration for multi-packs, raising it to $18.43, while the equivalized quantity price per gram stands at $8.98. As a result, the average item price of flower sold in Canadian dispensaries is $41.80, making pre-rolls a much more desirable option. Even though it’s hard to measure the value of pre-rolls in comparison to dry flower, a few concrete conclusions can be made:

  1. Consumers are paying less on average per purchase by opting to buy pre-roll(s) instead of flower.

  2. Consumers are saving time by purchasing a product that is immediately ready for use.

  3. Consumers would rather buy multiple pre-rolls in a pack, instead of buying multiple single pre-rolls.

This is great information for cannabis business owners looking to stay on-top of consumer trends in Canada’s cannabis market. This is especially true considering how well pre-rolls are maintaining their value in the market.

Pre-rolls have hardly been impacted by price compression. The product has seen minimal annual fluctuations when it comes to pricing. This suggests that they’ve been relatively immune to pricing compression compared to other products. This means that pre-rolls are seeing a huge increase in sales, and they’re maintaining their value while other cannabis products are gradually depreciating in value.

What now?

All in all, there is still a lot of opportunity in Canada’s cannabis industry for those that are willing to strategically adapt to trends and capitalize on consumer demand. Canada’s cannabis market is expected to continue growing well into the future, especially as the illicit market fizzles out. Nonetheless, starting a cannabis business in Canada will be more advantageous now than it will be anytime in the future since the market is only growing more competitive.

CannDelta is equipped with all the tools and expertise you’ll need for your cannabis business. Our background in Canada’s cannabis sector drives our services from application support to operational planning. Working with CannDelta is the best way to guarantee your success in Canada’s evolving cannabis landscape.

Frequently Asked Questions

The best cannabis products to sell in Canada are dry flower and pre-rolls. These two products make-up over two thirds of all cannabis product sales from cannabis businesses in Canada. Other popular products cannabis businesses in Canada should sell include, edibles, vapor pens, beverages, concentrates, and more.

There are numerous advantages of selling cannabis pre-rolls in Canada. Firstly, pre-rolls are currently the fastest growing cannabis product sold in Canada, making up about one third of cannabis product sales. Secondly, there are a lot of new brands and developments centered around pre-rolls. Consumers will continue to be engaged with the product as it continues to evolve. Thirdly, there are different varieties and styles, making it a product that can be enjoyed by all types of cannabis consumers. They offer a convenience factor that cannot be matched by purchasing dry flower. Finally, pre-rolls have seen minimal negative impacts on their pricing and value.

Cannabis businesses can cost anywhere from $50,000 to $5 million Canadian dollars depending on the type of business you plan to operate and your budget.