U.S. cannabis consumers spend $4.1B on pre-rolled joints

Over the past year and a half, U.S. consumers have spent more than $4.1 billion on pre-rolled joints, according to a recent industry report. These products now represent a significant 15.9% of the overall cannabis market, driven by an expanding preference for convenience and affordability.

Emerging trends in the pre-roll market

A notable trend in the pre-roll market is the growing popularity of infused pre-rolls. These specialty items contain cannabis concentrate and are often marketed as premium products. Despite their higher price point, infused pre-rolls accounted for 44% of the total pre-roll market in the first half of 2024.

This shift demonstrates a growing demand for high-end, indulgent experiences among cannabis consumers.

Pre-rolls gaining market share

Since 2020, pre-rolls have seen a steady rise in market share. In 2020, these products made up only 9.8% of the cannabis market, but by June 2024, their share had increased to 15.9%. In terms of revenue, the pre-roll market grew from $469 million in 2019 to an impressive $2.7 billion in 2023—a nearly sixfold increase in just five years.

Prices decline as volume surges

The average price for a pre-roll has fallen by about 16.7% since January 2023, from $7.80 to $6.50. However, the decline in price has been offset by a dramatic increase in sales volume. In June 2024, 26 million pre-roll units were sold, compared to 15.9 million in January 2023.

Factors driving consumer choices

According to the report, consumers primarily choose pre-rolls based on price and THC potency, although other factors such as cannabis strain, packaging, and brand loyalty also play a role.

The ongoing growth of infused pre-rolls suggests that many consumers are willing to pay a premium for enhanced products, reflecting a broader shift toward more curated and sophisticated cannabis experiences.

Custom cones USA: Leading the market

Custom Cones USA, a key player in the pre-roll market, has been closely tracking these trends. In collaboration with cannabis intelligence firm Headset, they have released their third annual white paper on the state of the pre-roll market. The report provides in-depth insights into consumer preferences and market dynamics, helping businesses stay ahead of the curve.

Pre-rolls as a symbol of the cannabis industry’s growth

As Harrison Bard, co-founder and CEO of Custom Cones USA, noted, "Pre-rolls remain a potent and profitable symbol of the cannabis industry as a whole." Despite falling prices, the pre-roll market continues to expand, reflecting a growing consumer base that values both convenience and premium offerings.

Shifting consumer preferences

The report indicates that pre-rolls have become the third most popular product form at cannabis retailers, following raw flower and vape pens. This growing preference for pre-rolls may be attributed to their ease of use, availability in various price points, and their evolving status as a premium product.

Personal perspective

Having followed the cannabis industry for several years, it is fascinating to see how pre-rolls have evolved from a niche product into a significant part of the market. The growing demand for infused pre-rolls, in particular, highlights a shift toward more specialised and sophisticated cannabis products.

It’s clear that consumers are seeking not only convenience but also enhanced experiences that align with their preferences for quality and potency. This trend will likely continue as the industry matures and more premium products become available.