Smoke Signals: Why Pre-Rolls Are Set to Dominate Canada's Cannabis Market
Pre rolls have muscled their way to commanding 39% of total cannabis product sales in 2024, moving a staggering 68.6 million units.
For half of 2024, from May to October, pre-rolls outsold flower, peaking with a 3% lead in July/2024.
The Pre-Roll Revolution: Canada's Cannabis Crown Jewel
In the ever-evolving competitive landscape of Canada's cannabis industry, a new monarch is poised to ascend the throne. Pre-roll cones, once the humble servants of convenience, are now staging a coup d'état against the long-reigning flower. As we stand on the precipice of this green revolution, it's clear that pre-rolls have become the leading revenue-producing segment in the world-leading federally legal Canadian cannabis market.
From Underdog to Top Dog
Once upon a time, in the not-so-distant past of 2022, pre-rolls were the friendly sidekicks of the cannabis world, holding a modest 20.7% market share [2]. Fast forward to the present day, and these paper wonders have muscled their way to commanding 39% of total cannabis product sales in 2024, moving a staggering 68.6 million units [1].
The secret to this meteoric rise? It's a potent blend of convenience, consistency, and innovation. Canadian consumers, it seems, have developed a taste for the finer things in life—namely, not having to roll their own joints. Canadian consumers are choosing speed, convenience, and quality. Who can blame them? In a world where we can have our groceries delivered with the tap of a finger, why should rolling a joint be any different?
The Numbers
While the overall Canadian cannabis market took a bit of a tumble in 2024, dropping 3.27%, pre-rolls stood tall, managing a modest but telling 1.24% increase [1]. This resilience in the face of a slowing market is nothing short of impressive. Flower sales, meanwhile, wilted by 9.3%, losing 2.2% of market share [1]. It seems the times, they are a-changin', and pre-rolls are leading the charge.
For half of 2024, from May to October, pre-rolls outsold flower, peaking with a 3% lead in July [1]. This seasonal surge suggests that when the weather heats up, Canadians prefer their cannabis pre-rolled and BBQ ready!
The ‘roll your own’ motto of past Canadian cannabis generations is no longer at the forefront of the culture.
In 2022 alone, nearly 27% of new cannabis products introduced in Canada were pre-rolls
The Secret: Infusion and Innovation
If pre-rolls are the new cannabis top shotta, then infused pre-rolls are next up. These potent powerhouses have seen growth that can only be described as explosive, expanding from a mere 6.2% of total sales in January 2022 to a whopping 29.8% by February 2023—a mind-boggling 606% growth rate [1]. It's as if someone took the industry, shook it up like a snow globe, and when the glitter settled a minute later, infused pre-rolls were on top.
The ‘roll your own’ motto of past Canadian cannabis generations is no longer at the forefront of the culture. The industry has responded to this consumer love affair with pre rolled convenience. In 2022 alone, nearly 27% of new cannabis products introduced in Canada were pre-rolls [2]. It's a veritable arms race of innovation, with producers constantly refreshing packaging and launching new strains with greater velocity.
High End, or Low End?
As the cannabis industry matures, discerning consumers are increasingly seeking premium products that deliver superior quality and experience. While pre-rolled cones have become a popular choice for convenience, not all are deliver the same levels of QA. Many growers, in an effort to cut costs, source their pre roll paper from countries like China, where cheaper, and contaminated paper with faked COC and COA products are often produced. This cost-cutting measure can significantly impact the overall quality of the pre-roll.
We recently caught up with Mike Pacchini, the Founder of Northern Canna. Mike told us that, ‘some producers are taking shortcuts by using cheap synthetic terpenes in their pre roll products. These fake terps mimick the aroma and flavor profiles of natural terpenes, and could potentially have unknown long-term effects. The use of synthetic terpenes is a serious issue in the industry. There are experts warning consumers now about the potential risks with inhaling these artificial compounds when heated.’
In contrast, brands like Northern Canna [4] are positioning themselves as premium options in the market. Christopher Ward, the President of North American Operations of Mary Jane Cones stated that, ‘by focusing on higher quality materials and natural ingredients, we’re catering to a growing segment of elite pre roll producers who are willing to pay a premium for superior QA. This shift shows the industry's evolution, with producers becoming more educated about pre roll cone QA.’
We're seeing a rise in knowledgeable consumers who understand the nuances of cannabis products, from the quality of the flower to the importance of natural terpenes and even the paper used in pre-rolls. These buyers are driving demand for higher-quality, more authentic and natural cannabis experiences, pushing brands to elevate their standards and transparency.
The Crystal Ball: 2025 and Beyond
As we peer into the future of 2025, all signs point to pre-rolls finally usurping flower as the reigning monarch of Canadian cannabis. The 2024 Canadian Pre-Roll Market Report predicts that 2025 will mark the first full year of pre-roll dominance. This isn't just a flash in the pan trend, either. The cannabis pre-roll category is projected to generate $5 billion in revenue by 2030 .
As we watch cannabis culture spread to new markets across the world, one can't help but marvel at the ingenuity of the cannabis industry. From humble black and grey market beginnings, to market dominance, the pre-roll's journey is a testament to the power of innovation, consumer preference, and consumer-oriented convenience.
In the end, the rise of pre-rolls in Canada is more than just a story of market shares and revenue streams. It's a tale of an industry adapting to meet the needs of its consumers, rolling with the punches, and coming out on top. As we look to the future, one thing is clear: in the high-stakes world of Canadian cannabis, pre-rolls are no longer just along for the ride—they're driving the future of the entire industry!
- Authored by Steven Grabenheimer & Co-authored by Perplexity AI
[1] https://honeysucklemag.com/pre-roll-revolution-custom-cones-usa-tracking-canada-cannabis/
[2] https://www.marijuanaventure.com/pre-rolls-at-no-2-in-canadian-market/
[3] https://cannacon.org/the-pre-roll-revolution-driving-cannabis-industry-growth-in-2024-and-beyond/
