It is no secret that cannabis is one of the fastest-growing industries in the marketplace today. Each day, new brands are being launched and new products are being designed. When consumers walk into a nearby dispensary, they are welcome with a wide array of pre-rolls, edibles, etc. At times, it can be exciting to witness the evolution of the marketplace, but it is important to note that humans are often creatures of habit. Customers will stop by the usual storefront for their morning coffee, visit the restaurant that makes them feel at home for lunch and return to their favorite recipes while cooking dinner. As the cannabis industry continues to grow, it is incumbent upon brands and industry leaders to understand who and what continues to pull customers back in time after time.
Popular Strains In The Evergreen State
The expansive medicinal and recreational cannabis markets within the state of Washington provide valuable insights into the repeat purchase trends of pre-roll customers. Data accumulated over 12 months in The Evergreen State highlights customers’ tendency to purchase similar strain types time and time again. Specifically, Sativa pre-rolls enjoyed a 26.4% repeat purchase rate, while Hybrid pre-rolls earned a 21.6% purchase rate and Indica pre-rolls achieved a 20.8% repeat purchase rate. The 27% dropoff in repeated purchases of Sativa to Indica highlights the loyalty and liking that many customers have developed toward the energizing strain. There are many reasons why this may be the case. Consumers may be able to find Sativas more easily online or in their nearest dispensary. Sativas are also characterized by the energetic, creative feeling that they often deliver, which is welcomed in the fast-paced environment that many people operate within.
Digging deeper, important insights can be gained from examining the top pre-roll strains by repeat purchase rate. As expected, five of the top ten strains with the highest repeat purchase rate are Sativa pre-rolls. However, Hybrid strains are more well-represented than one might initially expect. Chronic, a Hybrid strain, leads all strains with a repeat purchase rate 7.2% higher than that of DD, a Sativa strain, in second place. Not far behind, SMC, a Hybrid strain, sits in third with a repeat purchase rate of 44.5%. While the popularity of Hybrid strains may be somewhat surprising, it is expected that there is only one Indica strain, Blueberry, among the list of ten strains.
When compared to data found across the country, recent research in Washington highlights the unique nature of the state’s market. Nationwide, data from the first eight months of 2021 showed that Single Strain Hybrid products made up 40% of pre-roll sales. In comparison, Single Strain Sativa products made up only 10.30% of pre-roll sales during the same period. While Washington’s market may differ from other states, it does highlight the loyalty that consumers across the state have toward Sativa pre-rolls.
Identifying Top Pre-Roll Brands In Washington
Having identified which strains attract repeat sales, additional data is able to identify which brands are attracting repeat customers. In comparison to the disparity observed between preferred strains, there is more parity between preferred brands. Stingers is the most repeatedly purchased Pre-Roll brand at 52.5% and Stone Age Pre-Rolls are the tenth most repeatedly purchased at 44.6%, a difference of approximately 18%. While there are a number of pre-roll brands on the market, it does appear that customers are likely to return to the brand that they’ve purchased from previously. Ultimately, brands that break into the market with unique identities and build strong bonds with consumers can attract a solid core of repeat customers.
Gaining a deeper understanding of the pre-roll market in Washington can be extremely valuable to a growing cannabis market. Not only is Washington home to a thriving cannabis marketplace, but the pre-roll industry is snowballing across North America. Pre-Roll market share in the US reached a new high in August 2021 at 10.9%, while the pre-roll market share in Canada nearly matched a record-high of approximately 23% in August 2021. As this industry sector continues to evolve, it will be imperative for brands to monitor consumers’ preferences and repeat purchase tendencies. If you’d like to learn more about the strain data in the Pre-Roll category in Washington or other legal markets or find opportunities in different product categories, please read the full report here.
Cy Scott is co-founder and chief executive officer at Headset Inc., which turns retail data into real-time market insights. Previously, he co-founded cannabis information network Leafly, obtained Kelly Blue Book’s first patent, and assisted TEN: The Enthusiast network in transitioning publications including MotorTrend and Automobile from print to digital.