Cannabis consumers now purchase enough items that use marijuana extracts that, taken together, they account for more than half of all cannabis product sales. That number is expected to grow as the cannabis curious continue to try new products.
Flower still remains the No. 1 individual product, according to research by cannabis analytics firms BDSA, Brightfield Group and New Frontier Data. Flower accounts for 37% of all cannabis sales. However, the combined sales of products using extracts, including concentrates, vapes, edibles, topicals and tinctures, account for 57% of sales.
Individually, vapes (32%), edibles (13%) and extracts (10%) rank as the biggest sellers behind cannabis flower.
The analysts project that extracts will make up about $10.2 billion of the expected $18 billion in legal cannabis sales in 2020.
Rapid Growth Since 2014
The combined sales of extract products are much higher than when legal cannabis sales first began in Colorado and Washington in 2014. Just six years ago, extracts accounted for just 28.9% of all sales.
Edibles and topicals account for two of the biggest areas of growth, according to data from the new research. Both areas have grown about 28% annually since legal sales began. However, in 2020, sales in those two categories increased by 37% in comparison to 2019 sales.
Andy Seeger, a research manager with Brightfield Group, told Marijuana Venture that recreational markets that opened his year in Illinois and Michigan have helped to drive concentrate sales. Governments in both states allowed cannabis companies to start immediately selling extracts, leading to consumers in those two states having a wide range of choices.
Market Expansion, Diverse Offerings Expected to Continue
Ten states now offer recreational marijuana sales while Vermont allows possession. Voters in Arizona and New Jersey will consider making recreational sales legal in the November election.
In addition to this expansion into new markets, Seeger said that consumer interest also has driven expansion of available products. Cannabis companies have worked to meet consumer demand, which has translated into innovative products, pricing and packaging.
Many of these products appeal to cannabis consumers, especially new ones, because they do not require accessories and are easy to use, Seeger said. He specifically mentioned edibles and vape pens.
Ultimately, the consumer is the winner, with more choices than ever. “This mix of market model conditions and consumer interest is forcing an evolution of products that come to market and will continue to drive the industry,” Seeker said.
These trends, along with more people shopping for CBD products, has led to a cannabis market that appears ready to continue growing beyond 2020. That’s good news for cannabis consumers looking for a variety in what they purchase and benefiting from healthy competition between cannabis companies.