Marijuana Business Factbook 2019

213 © 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 CHART 4.07: Washington State’s Recreational Marijuana Market: Percentage of Sales To Top Five Brands By Category & Year Source: Headset © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Washington State's Recreational Marijuana Market: Percentage Of Sales To Top Five Brands By Category & Year Dabbable Concentrates Vapor Pens Edibles Beverages Capsules Tinctures & Sublinguals Topicals 20% 40% 60% 80% 100% Share Of Sales To Top Five Brands 45% 28% 38% 57% 54% 46% 59% 54% 52% 89% 84% 80% 88% 91% 86% 93% 86% 75% 85% 78% 74% 2016 2017 2018 Tinctures & Between 2016 and 2018, sales going to the top five brands ― those that account for the most sales ― has diminished among almost all product categories. This shift coincides with the rise in the number of brands in each category, but a small percentage of top-performing brands dominate the landscape, even with the decline. The sole standout is the concentrates category, where share of sales to the top five brands decreased from 2016 to 2017 but recovered somewhat from 2017 to 2018. This could signal that, while concentrates are often viewed as commodities, some manufacturers are beginning to make a name for themselves among consumers through brand recognition and building loyalty. Generally speaking, the smaller the category, the more concentrated sales are among the top five brands. This includes beverages, capsules, tinctures and sublinguals and topicals. These categories feature fewer brands than the other categories, meaning fewer brands are competing for a share of total sales. But there may be more of an opening for new competitors to enter the market than in the already saturated categories. For example, entering Washington state’s market as a concentrate producer competing against more than 600 other companies could prove significantly more challenging than entering the beverages segment and competing against just 35 producers.