Cannabis Consumers Increasingly Prefer Edibles & Extracts Over Flower
By Pat Beggan – July 26, 2018 featured in Ganjapreneur
Data from several cannabis market research and analysis firms continues to confirm the trend among consumers away from cannabis flower and towards vape cartridges, extracts and edibles, according to a USA Today report. Only recognizable brands with a diverse range of offerings are holding steady in this buyer’s market.
“Just growing flower is basically a knife fight to the bottom on price. The brands have the power. That’s what consumers expect in every industry, and this is no different.” — Ryan Smith, CEO of LeafLink, via USA Today
According to BDS Analytics and New Frontier Data, wholesale prices for flower in all markets continue to fall, some steeply. In the last 15 months in Oregon, the price of flower fell more than 41%. In Colorado, cannabis flower has gone from 67% of consumer purchases to 44% since legalization took effect, with the slack being picked up by a doubling in sales of concentrates. In California, it took just four months from the market’s launch for flower sales to drop 3%.
Meanwhile, cannabis analytics company Headset has studied the Washingtonmarketplace meticulously since its launch — their data also reinforces the anti-flower trend.
“We track about nine categories of products right now and that’s everything from flower to pre-roll, concentrates, vapor pens, capsules, tinctures, topicals. It’s a wide variety of products. I think that what we’re seeing is certain categories like flower continuing to lose market share.” — Cy Scott, co-founder and CEO of Headset, via the Ganjapreneur.com Podcast
The price of flower has become so competitive that many large growers are bringing in traditional agricultural experts to help manage their electricity and fertilizer costs so they can eke profits from the smallest of margins. This trend is expected to continue as the industry matures and companies continue to innovate to meet consumer demands.