Pre-Rolls: Meet Growing Demand with Quality Packaging
November 20, 2023
Across US cannabis sales, numbers have remained relatively the same as last year. One segment of category growth that’s been outpacing the market is pre-rolls, both pre-roll flower packs and infused pre-rolls.
In a study done in collaboration with Custom Cones USA and Headset data, sales show that “recreational” cannabis products are growing in category size, whereas “wellness” products are shrinking. From 2021 to 2022, pre-rolls and infused pre-rolls have seen double and triple-digit growth across the US and Canada.
Price compression is a massive worry for operators across all legal markets, which tends to creep up as a market matures. In most categories, prices tend to trend downward as more brands and products enter the market, creating competition. Investing in pre-rolls is a good way to build a moat to protect your margins.
An increased number of operators have produced infused pre-rolls throughout 2023, with infused pre-rolls making up a majority of the pre-roll category at 52%. Multi-packs of pre-rolls have grown over 400% since 2021, meaning consumers are looking for ready-to-use pre-rolls instead of rolling their own.
All this to say, pre-rolls aren’t going anywhere and are expected to overtake flower as the largest-selling product category by 2030. This is similar to the outpaced growth that disposable vapes have against vape cartridges. Consumers will continue to want more convenience in their consumption experience, and as the quantity and quality of pre-rolls and infused pre-rolls in the market continue to rise, we’ll see more consumers add it to their stash.
What Can You Do?
Understanding the pace of the market and where it’s headed can give you an edge in terms of what your company should invest in. Given all these different insights into pre-rolls and their growth, what should your brand do to capitalize on this growth?
Expand Your Offerings
Typically, a brand with products across multiple categories has limited SKU offerings within those categories but focuses on a main category. A flower brand may focus on eighths, quarters, and ounces but produces pre-rolls, vapes, and extracts with limited variation. Looking at what product segments are growing and investing in those allows you to make the most of your product assortment.
At AssurPack®, we offer many different pre-roll packaging options to diversify your assortment. We have options to satisfy your needs if you’re looking for single or multi-packs. Our SecurSlide® is a perfect solution for any size allowing you a full range of options for multi-packs. Our AssurSeal® solution is tailored for accessibility and multiple pre-rolls while maintaining airtightness and compliance. If you’re looking for creative pre-roll solutions, we recommend using the AssurCard®, cannabis blister packs, that can be customized with your branding, used for single or multi-packs, and have a low carbon footprint.
Invest in Automation
Any investment usually has a high upfront cost, whether time, sweat equity, or capital investment. With automation, you exchange a capital investment to reduce your labor cost so that your pre-rolls are eventually produced at a higher rate and a lower cost per pre-roll pack. With the knowledge that consumers are moving toward pre-rolls for convenience, it may be wise to invest in pre-roll automation so you can scale your operation as needed. AssurPack® packaging is automation-friendly, so you can easily work with an automation partner to streamline your packaging workflows. We are happy to connect you to automation partners to use with our packaging.
Reach out today to see what custom pre-roll solutions we can create for you!