Concentrate Market Trends – Cannabis News, Lifestyle

Cannabis concentrates are probably the best bang for your buck, and trends in the concentrate market suggest that. Concentrates rank fifth in the largest product category. While not nearly as popular as cannabis flower among young consumers, concentrates are three times more common than among older adults. Also, men tend to buy more concentrates than women.

The market share of concentrates in Canada has increased from 2.9% to 3.8% of total cannabis sales. As of June 2021, the opposite has happened in the United States. In the same period, the market share of concentrates fell from 9.5% to 8.3%.

Hash is the most popular concentrate in Canada, capturing 30% of the market compared to 2% in the US. Live Resin is more prevalent in the US with 34% of concentrate sales compared to 22% in Canada.

In Canada, the price of concentrates has fallen significantly, from an average of $48.88 in January 2020 to $25.97 in May 2022. That’s a 49% drop. Compared to the US, the price fell by 18% from $21.86 in August 2020 to $17.85 in May 2022.

total market share

Concentrate market share has increased in Canada (from 2.9%) and the US (from 9.5%).

The Canadians have made concentrates a top-selling category behind vape pens and edibles. In the US and Canada, concentrates are the fifth best-selling product behind flower, pre-rolls, vape pens, and edibles.

The concentrate market typically accounts for about 10% of total cannabis sales in the U.S. However, the peak was in late 2020. Since then, concentrates’ market share in the U.S. has declined, stabilizing at around eight and nine percent.

In Canada, the concentrate market has grown steadily since the government legalized more cannabis products in 2019. Concentrates’ market share has leveled off at around 4% of sales, but it’s too early to see long-term trends. It remains to be seen whether the slight decline in the concentrate market for both countries is due to short-term trends or longer-term structural problems.

Given this data, it is clear that the market share of the US concentrates is higher than in the Canadian markets. The US states where concentrates have a significant market share are also the states that legalized cannabis early. They are Oregon, Colorado and Washington.

Alberta has the highest market share in Canada at 4.5%, while Ontario is at the bottom end at 3.6%.

Concentrate Market Demographics

Concentrates are more popular with younger consumers than older ones. The Generation Z age group is focused on purchasing at three times the rate of consumers in the Baby Boomer generation.

Men also contribute more to the concentrate market share than women.

Pricing in the concentrate market

In the first year of legal concentrate sales in Canada, the concentrate market was very volatile. The average price started at $50 before dropping below $30. And then it climbed back up to the $40 mark by the end of the summer of 2020. Since then, the price of concentrates in Canada has steadily fallen to its current average price of $25.97. Between January 2020 and May 2022, a price drop of 49%.

In the US, concentrate prices have remained relatively stable. But here, too, concentrate prices have been falling since the summer of 2020. The average price in August 2020 was $21.86 compared to $17.85 in May 2022, a decrease of 18%.

Pack Sizes of Concentrates

The 1 gram pack size is the most popular in both the US and Canadian markets. In the US, 1 gram concentrates account for 95% of all concentrate sales. In Canada, one-third of concentrate sales come from two-gram packaged products. However, these two-gram products are made up almost entirely of hash.

Hashish isn’t nearly as popular in the US.

Consumer Preferences in the Concentrate Market

As previously mentioned, hashish is far more common among Canadians than among Americans. In Canada, hash dominates concentrate sales. Compared to the US, hash accounts for just 2% of all concentrate sales.

Shatter is also popular with Canadians, accounting for 25% of all concentrate sales. In the US, shatter accounts for just 7% of concentrated sales. In the US, live resin and rosin are far more popular than in Canada.

It remains to be seen whether these trends will continue. The concentrate market in Canada is relatively new, and federal regulations keep THC levels artificially low. However, it is not possible to calculate how this affects the consumer’s decision to buy or not.