Even with innovative, regulated cannabis products on the market in both the US and Canada like vape pens and drinks, flower is still undeniably the most popular product among consumers, according to a report on product category sales by Headset.
(Note: Headset is the Official Insights Partner of Business of Cannabis.)
Long-time buds
In the last three years, flower has maintained a market share between 40 and 50 per cent in the US. In Canada, market share has dropped from 78.4 per cent to 49.3 (likely because edibles, pens and concentrates were introduced in 2019). But in 2021, market share has stayed fairly consistent, with bud enjoying the largest product category sales by far when compared to others like edibles.
“In both the US and Canada, 3.5 grams is the most successful package size, which makes up more than half of each flower segments’ sales,” adds the report. “When we look at demographic groups, we find that the older the male customer, the more likely they are to spend their money on flower.”
Drilling down on discrepancies
While flower is undeniably popular, the data on the smaller categories is worth looking at when comparing markets in the US vs. Canada. For example, vape pens, edibles and concentrates are all far more popular in the US than in Canada — but why?
“It’s a reflection of how Canada overtaxes and over-regulates those categories to the point of absurdity,” tweeted industry insider Adam Greenblatt — although taxes are high in US jurisdictions like California, too.
Future planning
The love for flower could also present more business opportunities down the line, too — if policymakers grasp the appetite for smoking, that is.
“Data points like this should offer guidance to jurisdictions thinking about cannabis use lounges,” commented lawyer and entrepreneur Kirk Tousaw. “They must include smoking/vaping. That ingestion method dominates all others and it’s not even close. Also canna-drinks should be sold everywhere booze is sold (bars/restaurants/etc).”
