Marijuana Business Factbook 2019

211 © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. Financial & Operational Data: Cannabis Product Manufacturers | Chapter 4 MJBIZDAILY.COM TRENDS CHART 4.05: Share Of Adult-Use Cannabis Sales In Colorado & Washington State By Category & Year Source: Headset © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Share Of Adult-Use Cannabis Sales In Colorado & Washington State By Category & Year Flower Dabbable Concentrates Vape Pens Edibles Pre-Rolls Capsules, Tinctures & Sublinguals Topicals Beverages 62.2% 57.9% 49.5% 13.0% 14.7% 9.1% 10.0% 8.5% 7.3% 7.0% 1.5% 2.5% 0.9% 1.6% 1.3% 1.3% 2016 2017 2018 Flower remains the dominant form of cannabis purchased by consumers ― but flower’s share of the market is rapidly eroding. Vape pens and concentrates have been the beneficiaries of declining flower sales. Vape pens, in particular, have seen their market share grow substantially year over year. These products have broad consumer appeal and are preferred by casual marijuana users who are opposed to traditional smoking and more regular users who want to take advantage of the portable and discrete delivery. The share of the market going to pre-rolls has declined slightly after holding fairly steady in prior years. This is notable because the share of sales on pre-rolls has not decreased as rapidly as flower’s share of the market despite the commonalities between the products. The markets in Colorado and Washington state are relatively mature, meaning any new consumers entering those markets are likely new to cannabis in general ― making edibles an attractive category and explaining the uptick in market share from 2017 to 2018. Infused beverages have garnered some significant headlines recently. Mainstream alcohol giants, including Moosehead and Molson Coors, have entered the space to conduct research and develop nonalcoholic infused beverages. Craft brewers have entered the space as well, including Colorado’s Avery Brewing, California’s 21st Amendment Brewery and Wyoming’s Melvin Brewing. Despite mainstream interest and increased focus on research and development, beverages as a segment capture a very small share of total sales, meaning competition within this segment is likely to be fierce ― especially as more established, global brands decide to come on board.