Missouri's Cannabis Market: What's Fueling The Cannabis Boom? A Headset Analysis

In a recent report, the analytics firm Headset delved into Missouri's flourishing cannabis market. With a staggering $953 million in sales between February and September 2023, Missouri surged to the sixth-largest market in Headset's US tracking, surpassing Colorado and nipping at the heels of Massachusetts.

What's fueling this emerging market's success?

Market Landscape and Product Categories

Missouri's cannabis market showcases a unique product category landscape. Notably, cannabis flower dominates with a market share 7.6% higher than the national average, while pre-rolls lag behind by 5.2%.

This underrepresentation of pre-rolls in Missouri presents a substantial opportunity for brands. As this promising category gains momentum, it's expected to chip away at Flower's dominance, aligning the state with national averages.

Brand And Product Count

Missouri emerges as a market with one of the lowest brand and product counts in the US. With just 199 unique brands, it shares the company with other new markets like Illinois and Maryland.

In contrast, mature markets like Washington State boast over 1,100 brands, highlighting Missouri's scarcity of competition and its impact on pricing dynamics.

Pricing and Discounts

Missouri's cannabis prices are among the highest in the country, 57.2% higher than average item price compared to other markets. This is partly due to low brand and product counts. However, as the market evolves, Headset’s report states prices are expected to normalize.

Despite high sales, Missouri's retailers offer minimal discounts at an average of 10%, well below the national average of 20%, ensuring healthy profit margins for potential expansion.

Photo by Jason Dent on Unsplash.