Cannabis sales in Canada dropped last year, but pre-roll sales continued to rise and are on the verge of becoming the top sales category in the country.
Flower sales dropped 9.3% in 2024 and edibles plunged 12.4% last year, contributing to a total cannabis revenue decline of 3.27%, according to a Custom Cones USA report based on Headset data.
Total cannabis revenue refers to the total sales value of finished products at stores across all categories.
At the same time, pre-roll sales rose 1.24% and units sold increased 1%.
In Canada, flower is the sales leader by 0.25%, beating pre-roll sales by $11.4 million, said James Valentine, content marketing manager for Renton, Washington-based Custom Cones USA.
“There is heavy producer investment in Canada in pre-rolls,” Valentine said.
“Of new products released last year, 40% were pre-rolls, followed by flower.”
U.S. pre-roll sales jumped nearly 12% between June 2023 and June 2024 as new markets opened.
“In the American market, pre-rolls rank No. 3 behind vape pens and flower,” Valentine said.
Cannabis pre-rolls outsell flower by $33 million
Canadian cannabis consumers seem to prefer the convenience of pre-rolls during the warmer months, Valentine said.
For the six months between May and October, pre-rolls outsold flower by $33 million, peaking in July with a 3% sales lead.
General Admission is the clear leader in the Canadian pre-roll market, outselling No. 2 brand Shred by 250%, according to the Custom Cones USA/Headset report.
In 2023, General Admission products held five of the top 10 spots on the most popular products list and three of the top five. Of those, all were infused and four were multipacks.
California-based Jeeter, a newcomer to the Canadian market, landed in the No. 4 spot in terms of market share.
Adam Coates, chief revenue officer of Calgary, Alberta-based Decibel Cannabis Co., maker of General Admission, said pre-rolls are on the verge of overtaking flower as the dominant cannabis products in the market.
“You already see – especially in the summer months – where pre-rolls spike,” he said.
“Ready-to-consume products are on trend for consumers. They don’t want to play around with it a lot to consume it.”
Pre-roll preferences change province to province
But the pre-roll market differs between provinces, Coates said.
British Columbia, for example, has a 20% incremental tax on vape products, Coates said.
Even so, British Columbia experienced only a 0.45% growth in pre-roll sales year-over-year, while smaller markets such as neighboring Alberta jumped 5.6% year-over-year and Saskatchewan rose 3.5%.
Quebec, which is not tracked by Seattle-headquartered cannabis analytics firm Headset, caps the THC content of all cannabis products sold at 30% so infused pre-rolls aren’t an option in the province.
Quebec also doesn’t permit vape products, although the ban will be lifted this fall, so they’re not competing with pre-rolls.
“We’re seeing pre-roll growth in Quebec, but it’s a different market,” Coates said.
“You don’t get the same product assortment that you do in other provinces.”
Growth has slowed overall, Coates said, and pricing has flattened.
“Flower is still the biggest category, and because of a step-down of production, flower pricing is starting to come up,” Coates said.
“That hasn’t happened in a long time.”
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Pre-rolls poised for sales, innovation supremacy
Chris Jones, president of Toronto-headquartered Cannabis Xpress, said pre-rolls rank among the retailer’s top-selling products at its 14 stores in Ontario – especially with increasingly popular infused joints that appeal to experienced consumers who want something more potent.
“The demand extends beyond just the summer months, though many consumers appreciate the ability to try different strains in smaller quantities without committing to larger flower purchases,” Jones said.
In New Brunswick, where Cannabis Xpress operates four stores, pre-rolls also have demonstrated steady growth.
But flower continues to dominate the market, which Jones attributes to “the more traditional purchasing habits of many cannabis consumers in the region.”
“The (pre-roll) category benefits from strong local brands and a customer base that values high-quality, well-rolled products,” Jones said.
“The resilience of pre-rolls suggests a shift in consumer preferences.
“If this trend continues, we may see pre-rolls not only become Canada’s top-selling cannabis product but also drive further innovation in formats, sizes and potency levels.”
Margaret Jackson can be reached at margaret.jackson@mjbizdaily.com.
