Point of Sale Software in the Cannabis Industry – Report 2021
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The fourth annual report on point of sale software in the cannabis industry is now available for free download here. The 2021 report provides a comprehensive update on Point of Sale Software (POS) market share across the cannabis industry using primary research from the Cannabiz Media research team.
For the 2021 POS report, Cannabiz Media researchers used a convenience sampling method to collect data from 3,132 of the 8,875 active pharmacies, retailers, and delivery license holders in the United States, which represent an estimated 35% of the market. The research team made a total of 23,000 outbound calls to interview these licensees in late spring and summer 2021.
The 2021 Point of Sale Software report in the Cannabis Industry Report contains key insights on vendors, market shares, growth trends, switching behavior and more.
Key findings for 2021
In 2021, the point of sale software category in the cannabis industry grew from 68 to 78 vendors, with 11 new vendors entering the market. This year, the top 5 vendors account for 61% of the market and the top 10 vendors account for 79% of the market. Two companies bought other vendors in 2021, which significantly increased their two market shares (Dutchie bought Green Bits and Leaflogix and Akerna bought Viridian and 365 Cannabis).
Top 5 point-of-sale software providers
The top five POS software providers in 2021 dominate 61% of the market, up from 66% in 2020 and 68% in 2019.
The four largest providers by market share in 2021 are the same as in 2020, but the provider with the fifth largest market share switched from Indica Online (down to 6th in 2021) to Leaflogix (from 6th in 2020). Here is the top 5 breakdown:
- Green bits: 19% (compared to 21% in 2020)
- BioTrack: 16% (compared to 20% in 2020)
- Flowhub: 13% (from 11% in 2020)
- MJ highway: 7% (compared to 9% in 2020)
- Blattlogix: 6% (from 3% in 2020)
Industry growth trends and consolidation
Since Cannabiz Media’s first report of point-of-sale software in the cannabis industry in 2018, several vendors have seen significant growth. For example, Green Bits’ market share has increased 56% since 2018, and BioTrack has increased 24% while Flowhub has increased 97%. However, growth trends become even more interesting as companies begin to consolidate.
Dutchie’s acquisition of Green Bits and Leaflogix consolidates two brands that are ranked number one and number five in POS software market share, according to a survey by Cannabiz Media. This consolidation gives Dutchie a huge market share. In addition, Akerna’s acquisition of Viridian and 365 Cannabis complements MJ Freeway’s previous offering.
Change of POS provider in 2021
As reported in previous years, cannabis licensees keep switching POS vendors. In the Point-of-Sale in the Cannabis Industry Report 2021, the Cannabiz Media research team reports 298 changes of supplier, compared to 120 changes of supplier last year. Flowhub, Leaflogix and Growflow have added more customers than they lost. BioTrack, on the other hand, lost most of the accounts but took on a few new ones as a small compensation.
The states with the most brand changes in 2021 include Colorado (83), Oklahoma (64) and Oregon (49). Given the consolidation tendencies among providers of POS software in the cannabis industry, the switching behavior is likely to continue and the number of providers is likely to decline in the future.
CRM software in 2021
Cannabiz Media’s research team also surveyed pharmacies about the customer relationship management (CRM) tools they used. The most common answer about which CRM they used was “none” (64%). Among the 1,900 respondents who shared the CRM they used, Dutchie (9.7%) and SpringBig (7.6%) were named the most frequently.
Looking at the CRM tools combined with the point of sale software, Cannabiz Media researchers found that 49% of the reported Blackbird CRM installations used Green Bits as a POS provider. Dutchie was paired with Green Bits in 29% of the reported installations and with Leaflogix in 15% of the reported installations. SpringBig has partnered with many providers.
Find out more in the full whitepaper
Download the Complete Point Of Sale Software In The Cannabis Industry: Report 2021 for all the data and insights including:
- The complete list of all 78 active pharmacy, retailer and delivery license holders in use nationwide
- Details on the total market share of POS software
- Key POS software market data for Oklahoma, California and Montana
- POS software data for medical states versus states with adult programs
- Data on the change behavior of the POS software by provider and country
- CRM brands used by active cannabis pharmacy licensees
- Coupling data from CRM and POS software
- Inactive license data by state and POS software provider
- Data charts and tables
If you have any questions about the 2021 report, point of sale software provider data, or cannabis license holder data, 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 how you can use it for sales and marketing so you can grow your business and achieve your goals.
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