Flower is king in the cannabis world. It is the dominant category in every market, requiring little-to-no processing; it is often the cheapest category of cannabis. And flower is versatile. It can be smoked, vaped or used to make edibles or oil. From a business standpoint, flower is also susceptible to price fluctuations. The price of flower has been decreasing over time.
From January 2021 to March 2022, the price of flower dropped by 22% in the US and 17% in Canada. And from March 2019 to April 2022, flower market share dropped from 78.8% to 42.5% in Canada and 41% to 40.4% in the US. However, that is part of an industry-wide downward trend. Flower is king compared to the sales of pre-rolls and vape pens.
Flower is King Compared to Edibles & Vapes
Flower is king in terms of sales and market share. By total sales volume in all cannabis markets, flower comes out on top. Flower captures nearly twice as many sales as the next category.
The market share of flower has been declining since 2019. In Canada, this began in the early months of legal sales. The flower marker surged briefly during the COVID pandemic in the US but has been decreasing since early 2021. Market share in the US is now lower than pre-pandemic levels.
Per States and Provinces
Is flower king in the legal states and provinces?
Ontario has a higher proportion of total sales in the flower category than other Canadian provinces. There is a wide distribution in the US, with Maryland and Michigan taking the top spots. Ironically, Colorado and California have the lowest proportion of total sales to the flower category.
A lot has changed in a year. Last year, Nevada held the top spot for the largest flower market share. Their share was at 56.3%; this year, it’s down to 46%. And this isn’t unique. Every flower market has seen a decline in market share since last year.
What Kind of Flower is King? Canada vs. the USA
What kind of flower is king? Looking at Canada and the US, we see some similarities and differences. For similarities, hybrid flower is the most popular in both countries. Indica is more prevalent in Canada than sativa strains. At the same time, both indica and sativa flowers reach the same sales volume in the US.
A significant portion of sales in the US are from “popcorn” flower. A trend that has not yet caught on in Canada. Ground flower is popular in Canada but doesn’t yield a lot of sales in the US.
Pricing Flower: Canada vs. the USA
If flower is king, it’s because of its price. The average price per gram of flower has dropped in both the US and Canada. In Canada, the price decreased steadily throughout 2021, whereas the US saw a slight increase in prices in September.
The average price of flower in the US dropped by 22% from January 2021 to March 2022. In Canada, the flower price dropped by 17% over the same period.
Type of Buyer
The demographic data tells us about different consumer groups that shop for cannabis flower. Males spend proportionally more on flower than female customers. At the same time, baby boomers tend to spend the most on flower, followed by Millennials.
Generation Z customers only spent 1/3 of their potential cannabis income on flower in Canada.
Flower is king despite its decreasing sales. Its versatile nature will likely mean it remains the dominant category. Cannabis flower can be quickly grown and requires little to no processing. However, as customers branch out and try new products, the market share for cannabis flower may decrease even further.