Point of Sale Software in the Cannabis Industry – 2020 Report
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Cannabiz Media’s research team has completed its third straight year tracking the market share of point-of-sale software for primary and secondary research in the cannabis industry.
The 2020 Point of Sale software in the Cannabis Industry Report is now available for free download here.
As in previous point of sale (POS) software research, Cannabiz Media used a convenience sampling method to collect 2020 data from 2,146 of the country’s 7,081 active pharmacies and retailers, which we estimate represents 34% of the market.
In total, Cannabiz Media made 14,232 phone calls to interview pharmacies and retailers across the country. In addition, email questionnaires were sent to collect additional data.
The 2020 POS software in the cannabis industry report contains all the detailed results of the extensive research effort. Cannabiz Media will continue its research and update the POS data available in the advanced data feature in the Cannabiz Media license database.
Main results for 2020
After a significant increase in the number of providers in 2019, the number of point-of-sale software providers in the cannabis industry remained unchanged in 2020. There are still 68 unique point-of-sale vendors selling software used by licensees in the U.S. active licensees we surveyed.
However, some of the players have changed. For example, 13 new POS vendors came in while 13 others left the market.
Top 5 point of sale software providers
In 2019, the five largest POS providers accounted for 68% of the total market. In 2020 that percentage dropped to 66%.
Green Bits has climbed to the top of the market share rankings, moving from second place in 2019 behind BioTrack to first place in 2020. BioTrack slipped to second place, while Flowhub, MJ Freeway and Indica Online were third, fourth and fifth. in 2019 and 2020.
- Green bits: 21%
- BioTrack: 20%
- Flowhub: 11%
- MJ Freeway: 9%
- Indica Online: 5%
The top 10 POS vendors lost collective market share to smaller businesses over the past year. In 2019, the top 10 vendors accounted for 84% of the market (up from 93% in 2018), and in 2020, the top 10 vendors accounted for 80% of the market.
Top 3 Point Of Sale Vendors In States For Medical Use Only Or Adults Only
Another interesting finding from the research uncovered is the difference in market share between medical-only states and adult-only states. In medicine-only states, BioTrack is the market leader (21.1%), followed by MJ Freeway (18.2%) and Indica Online (8.5%).
In terms of states with adult use, Green Bits is the market leader with a market share of 29.5% in 2020 (down from 28% in 2019), followed by BioTrack (19.5%; down from 20.8% in 2019) and Flowhub (13.3%)).
POS Vendor Switching in 2020
That year, Cannabiz Media began tracking which licensees had switched their POS vendors since the previous year. We cannot judge whether the changes compared to previous years are positive or negative, but we think it is interesting to see which providers have won and lost and in which countries they have switched.
All of this information is detailed in the whitepaper report based on which states the provider switched and which POS providers gained and lost customers. For example, the highest number of licensees switched to green bits (21), but 15 licensees switched away from green bits, bringing a net gain from the move of six.
The largest net gain from customers from the move was at Leaflogix. A total of 13 licensees moved to LeafLogix and three moved away from Leaflogix to generate net income of 10 customers. On the other hand, the highest number of licensees who participated in our study switched from BioTrack (29), while none of the licensees reported switching to BioTrack.
Please see the full whitepaper for more information
Download the full point of sale software for the Cannabis Industry: 2020 Report for all the data and insights including:
- The full list of all 68 point of sale providers used by active pharmacy and retail licensees in the U.S. cannabis industry
- General information on market share
- Market share information for medical purposes only
- Information on the state market share for adults
- Changes in market share 2018-2019 for major providers
- Key market data for Oklahoma, California and Michigan
- Software switching data by manufacturer and state
- Inactive license data by state and provider
- Data charts and tables
Listen to the report’s author, Ed Keating, and discuss the data and insights with Amanda Guerrero, a member of the Cannabiz Media team, and NCIA at the Industry Essentials webinar.
If you have any questions about the whitepaper, point of sale software vendor details, or cannabis license holder details, please contact the Cannabiz Media Team.
And don’t forget that all of the data in this report (and more) is available to subscribers in the Cannabiz Media License Database. Schedule a free demo to see them in action.