As consumer preferences shift toward convenience and ready-to-use products, pre-rolled joints have evolved from a niche offering to a staple on retail shelves and are emerging as one of the fastest-growing segments of the cannabis industry.
Between June 2023 and June 2024, pre-rolls experienced the biggest increase in sales revenue among all categories, jumping 11.89%, according to a recent study.
Pre-rolls accounted for more than $4.1 billion in sales and sold over 394 million units during that time frame, the study shows.
The study was conducted by Renton, Washington-based pre-roll packaging and manufacturing company Custom Cones USA and Seattle-headquartered cannabis industry analytics firm Headset.
“Quality has continued to increase, and prices continue to drop,” said Harrison Bard, co-founder and CEO of Custom Cones USA and DaySavers.
Adam Coates, chief revenue officer of Calgary, Alberta-based Decibel Cannabis Co., maker of Canada’s No. 1-selling pre-roll brand, General Admission, attributed the rising popularity of pre-rolls to consumers looking for instant gratification.
“Convenience formats are starting to take hold,” Coates said.
“That’s why you’re seeing the growth of pre-rolls, but you’re also seeing it in other categories like all-in-one vapes.”
Infused pre-rolls
Infused joints, which became the top-selling pre-roll category in the United States last year, have maintained an average 43.4% share of the segment in the markets Headset tracks.
Infused pre-rolls hit 44.4% market share in the first half of 2024, suggesting a preference for premium goods.
Sales of infused pre-rolls reached more than $1.75 billion in 2023 and the first half of 2024, according to the Custom Cones USA study, overtaking hybrid and single-strain pre-rolls, which saw $1.64 billion in sales during that time.
Sales of General Admission infused pre-rolls took off in 2022, after Health Canada clarified the language in its regulations, Coates said.
The previous interpretation was that you couldn’t combine two classes of cannabis – dried flower and extracts, for example – to create one product, which meant infused pre-rolls were not permitted.
“Our biggest product line – and what put us in the leader position – is distillate-infused pre-rolls,” Coates said.
“We’d seen the success of them in U.S. markets like Colorado, California and Oregon.
“High potency pre-rolls with added terpenes was in line with what the consumer was looking for.”
Jeeter CEO Sebastian Solano said that before the California-based pre-roll brand enters a new market, non-infused pre-rolls tend to dominate with 70%-90% of sales.
But “once Jeeter enters the market, infused pre-rolls increase,” Solano said, “and in some markets, it becomes 70%.”
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