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 29% in February 2022 year-over-year (YoY).*
The fastest growing brands in each of our seven key states in February were:
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Timeless NOIR (AZ)
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Jeeter (CA)
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Colorado Cannabis Company (CO)
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STIIIZY (MI)
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Aether (NV)
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Higher Cultures (OR)
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Cultivate (MA)
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State View: Massachusetts grew the fastest at 121% compared with the same period a year ago.
Categories: Concentrates saw the largest drop in platform market share (-0.22 percentage points) from January 2022 to February 2022.
Buyers and Sellers: During February 2022, average sales per seller fell 6.3% YoY, and average spend per buyer grew 4.6% YoY.
KEY STATE FOCUS
CA
1%
MA
121%
NV
33%
CO
1.5%
OR
14.6%
AZ
-9.2%
MI
69%
Massachusetts continues strong year-over-year growth
For February 2022, wholesale cannabis sales measured by transactions on LeafLink’s marketplace (GMV) increased by 29% YoY.
To help clients better understand state-level trends, we disclose market-specific information for seven key states each month. Out of those disclosed this month, only Arizona did not see year-over-year growth, and Massachusetts saw the most growth at 121% year-over-year
CATEGORY ANALYSIS
Edibles & Ingestibles increase market share
Flower retained its number 1 spot with 33% of GMV during February 2022, despite a 7.5% decrease in sales and a 0.21 percentage point decrease in market share compared to January.
Edibles & Ingestibles saw the largest share change this month compared to January, with a .34 percentage point increase. The category also saw the least sales change, decreasing by 5% while other categories experienced more significant declines.
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RETAILER SEGMENTATION VIEW
Comparing Buyer Audiences in Missouri vs. Alaska
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 MO retailers in the 4th quintile spend 42% more than those in the same quintile in AK, the difference in order frequency ends up making this group of retailers worth 68% more on a monthly basis in Alaska.
MARKET SATURATION
Opportunity-seeking producers should continue to look at Flower in Missouri
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.
February 2022 marked the seventh month in a row that Flower in Missouri was the least competitive category overall. Flower made up 58% of the sales in Missouri during February, but were only sold by 34% of the brands in the state.
For the first time since May 2021, Alaska had the most competitive category: Pre-Rolls. All categories in Alaska are relatively competitive, but Pre-Rolls made up 56% of sales while only being sold by 11% of Alaska brands in February.
BRAND PERFORMANCE
Transaction volume is down by 6% YoY
In February, we saw a 40/60 split between brands seeing an increase in sales. Median brand growth was approximately 23% month-over-month (MoM), while those that declined saw a median reduction of 22%. Overall average transaction volume per brand decreased by 8% MoM during this month and 6% compared to the same period last year.
The fastest growing brands in each core state were Timeless NOIR (AZ), Jeeter (CA), Colorado Cannabis Company (CO), STIIZY (MI), Aether (NV), Higher Cultures (OR) and Cultivate (MA).
BUYER PERFORMANCE
Retailers spent 4.6% more in February 2022 vs. February 2021
Buyer spend had a similarly balanced ratio when looking at increase/decrease in spend. 43% of buyers increased spend at this time. Buyers who did reduce their spend decreased it by 24.5%. Average transaction volume per buyer decreased by 4% MoM and grew 4.6% compared to the same period last year.
PRICING ANALYSIS
Flower prices decreased slightly in February
Average listed Flower prices*** averaged a 0.54% decrease each week to end the month at $1,097, 2.2% lower than at the end of January. Oklahoma and Michigan saw the largest increase during this period, ending the month 7.3% higher than January.
Average listed Concentrates prices*** saw a slight decline in February, averaging a .9% decrease each week. This continued the trend seen in recent months, with the average price ending 8.8% lower than the previous high.
*In each of 2020, and 2021, 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.