U.S. Consumers Have Spent More Than $4.1 Billion On Pre-Rolled Joints In The Past 18 Months and Packaged Flower is still #1 Above even Pre-Rolled Flower Joints!
Flower reigns supreme, whether buying it as buds and flowers or having those buds and flowers pre-rolled into joints for you, smoking cannabis is still the king according to a new industry study!
With customer tastes changing toward convenience and ready-to-use products, pre-rolled joints have transformed from a niche product to a retail mainstay, quickly becoming one of the cannabis industry's fastest-growing segments.
According to a recent study, pre-rolls witnessed the greatest rise in sales income across all product categories from June 2023 to June 2024, growing by 11.89%.
This analysis discovered that pre-rolls produced more than $4.1 billion in sales, with over 394 million units sold during that time period.
Custom Cones USA, a Renton, Washington-based pre-roll packaging and production company, and Headset, a cannabis industry analytics organization headquartered in Seattle, conducted the research.
“Quality has continued to increase, and prices continue to drop,” said Harrison Bard, co-founder and CEO of Custom Cones USA and DaySavers.
Adam Coates, chief revenue officer at Decibel Cannabis Co., based in Calgary, Alberta, and producer of Canada’s top-selling pre-roll brand, General Admission, credited pre-rolls’ growing popularity to consumers’ desire for instant gratification.
“Convenience formats are starting to take hold,” Coates noted. “That’s why pre-rolls are growing, and you’re also seeing similar trends in other categories like all-in-one vapes.”
Leading the Pack in Popularity and Sales with Infused Pre-rolls
Infused joints, which became the leading pre-roll category in the U.S. last year, have consistently held an average 43.4% share of the market in areas tracked by Headset.
In the first half of 2024, infused pre-rolls captured a 44.4% market share, indicating a growing consumer preference for premium products.
According to the Custom Cones USA study, infused pre-roll sales exceeded $1.75 billion in 2023 and the first half of 2024, surpassing hybrid and single-strain pre-rolls, which generated $1.64 billion in sales during the same period.
Sales of General Admission infused pre-rolls surged in 2022 after Health Canada clarified regulatory language. Previously, regulations were interpreted to prohibit combining two cannabis classes, like dried flower and extracts, into a single product, which restricted infused pre-rolls.
“Our leading product line – and what established our market position – is distillate-infused pre-rolls,” said Adam Coates, chief revenue officer of Decibel Cannabis Co. “We observed their success in U.S. markets like Colorado, California, and Oregon. High-potency pre-rolls with added terpenes match what consumers want.”
According to Jeeter CEO Sebastian Solano, non-infused pre-rolls typically dominate new markets, accounting for 70%-90% of sales. However, “once Jeeter enters the market, infused pre-roll sales increase,” Solano said. “In some markets, they grow to 70%.”
Custom Cones USA’s Harrison Bard noted that while many consumers seek the highest potency possible, factors like freshness, terpene profile, and cannabinoid content also play a role, especially for those managing anxiety. “Potency isn’t everything,” Bard explained. “It’s just one of many factors.”
Some consumers prioritize price, a space where Michigan-based Dragonfly excels. “As states open up and prices fall, quality cannabis becomes more accessible,” said Ching Ho, founder of Dragonfly, which claims a 90% share of Michigan’s wholesale pre-roll market. “We move more pre-rolls monthly in Michigan than the New York market does in a year.”
With plans to enter the New York market, Ho emphasized Dragonfly’s value-driven approach: “We offer a high-value product at one of the lowest prices,” Ho said. Dragonfly’s non-infused pre-rolls sell for $1, and infused options for $3, thanks to in-house cannabis production. “It’s like Costco’s rotisserie chickens,” Ho noted. “Owning our production enables those prices.”
Multipack Pre-Rolls: Affordable, Convenient, and Increasingly Popular
Pre-packaged multipacks of pre-rolls, containing two or more joints, are gaining traction due to their affordability and convenience. They offer cost savings for both manufacturers, who reduce packaging and labor expenses, and consumers, who benefit from purchasing multiple joints at once.
According to the Custom Cones USA-Headset study, multipacks held a 27.7% share of the pre-roll market in 2018, a figure that has surged to nearly 50% as of June.
Multipack revenue rose by 43% in just 18 months, increasing from $89.1 million in January 2023 to $127.4 million in June.
“Joints used to be more of an add-on,” said Harrison Bard of Custom Cones USA. “Now consumers are shopping specifically for pre-rolls.”
Bard noted that multipacks reflect brand loyalty, with many consumers opting to stick with the same product throughout the week. Some brands even offer multipacks with various strains or targeted effects.
While the 1-gram pre-roll remains the most popular option, smaller quarter-gram “dog-walker” joints are also on the rise in popularity.
Pre-Rolls Make Cannabis More Accessible… Appealing to New Consumers
According to the study, pre-rolls rank as the third-largest category, following flower and vape pens, both of which saw modest growth of under 3.5%.
Pre-rolls are likely to keep gaining market share because they’re easier to consume than flower, which requires grinding and either rolling into a joint or using a separate smoking device, noted Adam Coates.
Pre-rolls also attract newer consumers who may be unfamiliar with marijuana but are curious to try it.
“Breaking up flower and rolling a joint isn’t very approachable,” said Jeeter’s Sebastian Solano. “True enthusiasts love seeing the flower they’re smoking and enjoy the ritual involved.”
Quality and Freshness Drive Evolution in the Pre-Roll Market
In the early days of marijuana legalization, consumers often avoided pre-rolls due to the low-quality cannabis used to fill them. However, as pre-roll quality has improved, consumers are now prioritizing freshness, explained Harrison Bard.
Although eco-friendly paper and cardboard packaging were initially common, they are increasingly being replaced by containers designed to keep cannabis from drying out. Manufacturers are even starting to use humidors to maintain freshness, and Bard predicts that humidors could soon become a fixture in the homes of frequent cannabis users.
While cigar humidors typically have angled shelves for display, cannabis humidors require flat shelves, noted Bard, adding that Custom Cones USA recently began offering humidors specifically designed for pre-rolls.
Bard also anticipates that manufacturers will start adding “best-by” dates to pre-roll packaging and may offer to take back unsold pre-rolls past this date or sell them at discounted stores.
To meet consumer demand for freshness, pre-roll companies will need to improve supply chain management and demand forecasting. In a competitive market, companies may produce thousands of pre-rolls daily without selling them quickly, Bard noted.
“Cannabis isn’t as risky as gas station sushi, but consumer expectations are high, and so is competition,” Bard said. “Brands that can guarantee freshness by marking production dates and taking back older products will stand out in the market.”
Bottom Line
The pre-roll cannabis market has become a dominant force in the industry, fueled by consumer demand for convenience, variety, and premium options like infused joints. With sales driven by innovations in quality, affordability, and multipack offerings, pre-rolls now stand as a top-selling product segment. As brands enhance freshness and shelf-life management, pre-rolls are poised to maintain robust growth, appealing to both new and experienced cannabis consumers seeking accessible, ready-to-use products.
A BUYERS' GUIDE TO PRE-ROLLS, READ BELOW...
