RollPros just released its Colorado Pre-Roll Market Report, which takes a close look at how pre-rolls are the silver lining in the state’s flatlining cannabis market growth. While the overall state sales growth is 0.2%, the pre-roll category experienced a 4.3% increase over the same period.
According to the report, the reason for this increase is most likely the competition between 94 active pre-roll brands in the region — driving innovation and quality in the market. Pre-roll sales are also forecasted to reach $133.8 million by the end of 2024.
Pre-Roll Market Revenue
The report states that standard pre-roll sales reached $10.91 million from January to March, 2024. This is an increase of 6.3% compared to October to December, 2023. On the other hand, infused pre-roll sales reached $13.28 million from January to March, increasing 2.6% compared to October and December.
Overall revenue of both standard and infused pre-rolls totaled $24.19 million, increasing 4.3% during the same time frames.
The Colorado Market Compared to Other States
RollPros’ founder and CEO Kyle Loucks says one of the most obvious comparisons between Colorado and other markets is its maturity. The state legalized adult-use marijuana back in 2014, making it the one of the first states to do so.
“From our perspective, this maturity is represented by a number of factors including increased brand representation as businesses navigate specific and often convoluted regulatory environments, product specification as businesses tap into available demand and the solidification of consumer preferences as brand loyalty increases and innovation dies down,” notes Loucks.
New Jersey for example, has very few competing brands largely due to licensing and cultivation timelines, according to Loucks. It also has a low volume of infused or specialized pre-roll SKUs as consumers are likely still getting used to walking into a dispensary itself.
“That being said, one of the more interesting comparisons we’ve been teasing is the cultural differences between these markets,” he says. “We scratch our heads a bit when we see classic (uninfused) pre-rolls garner an uptick in Colorado — until we sit down with market leaders from states like Mississippi and are reminded that fluctuations in household economics or even the historical prevalence of tobacco consumption are very real factors that impact a consumer’s tendency to pick up a joint.”
The Future of Colorado’s Pre-Roll Market
Loucks states that he sees Colorado as a hotbed for careful and calculated innovation. “It’s likely shifted toward a consumer’s market, where there just isn’t enough space for all new or upcoming brands to enter the market and win,” he says.
“It’s still exciting though,” he continues. “As we see with the popular brands today, there’s plenty of opportunity to build up loyalty, add value for consumers and market some very cool (and popular) products that you just can’t find anywhere else yet.”
