Amid industry consolidation, identifying emerging brands in key markets is crucial for acquisitions and collaborations. While wholesale prices have risen, retailer margins have tightened, reducing profitability. Cannabis concentrates offer a way to premiumize offerings and improve margins in this context. This raises the question: which strong-growth concentrate brands are leading the market with premium offers?
The Appeal Of Concentrates
In oversaturated markets, consumers seek standout products with refined tastes that command higher prices due to their potency, sophisticated flavors and premium packaging. According to BDSA data, cannabis concentrates have gained popularity, with sales rising significantly, making them a lucrative option for companies looking to enhance profit margins.
Smaller local brands with loyal customer bases in emerging markets like the east coast and Midwest, are well-positioned for strong sales and are attractive acquisition targets during industry consolidation.
Regional Highlights In Key Markets
Michigan has emerged as a significant market for several brands, including Goodlyfe Farms, Galactic and Society C, each exceeding $5 million in sales. These brands demonstrate strong growth in concentrates alongside other product categories.
Massachusetts is another key state, hosting high-performing brands like LivWell and Happy Valley, both showing strong sales trends. Additionally, Sauce Essentials has seen over $1 million in sales, operating in Massachusetts among other states.
Market Insights Snapshot Of The Top 4
- According to Headset data, Ozone has shown notable performance in Illinois across multiple cannabis categories. It consistently held the second position in Concentrates from April to June 2024, improving from third in March.
- Rythm experienced fluctuations in various categories across states. In Illinois, it held fourth in Concentrates from March to May 2024 but dropped out of the top 30 by June.
- Good Chemistry Nurseries showed consistent performance reaching over $2 million in sales by June 2024. In Massachusetts, it climbed to the top spot in Concentrates in June, while Flower and Pre-Roll categories remained stable in the top four and top two, respectively.
- Goodlyfe Farms demonstrated strong performance in Michigan, climbing to third in Pre-Rolls by June 2024, after starting from sixth in March. However, its entry into the Concentrates category in May at 32nd and climbing to 22nd by June indicates potential growth but highlights challenges in this market.
Emerging Players
Several brands, including Distro 10, Mischief, The Limit, and Traphouse Cannabis Co., are gaining traction with sales surpassing $1 million. These brands are predominantly concentrated in Michigan, highlighting the state's robust market growth.
Top 15 Cannabis Concentrate Brands By Sales And Locations
- Ozone AAWH - Illinois, Massachusetts, Maryland, Michigan, Ohio
- Rythm - Illinois, Massachusetts, Maryland, Nevada, New York, Ohio
- Good Chemistry Nurseries - Colorado, Massachusetts
- (the) Essence VRNOF - Illinois, Massachusetts, Maryland, Nevada, Ohio
- Goodlyfe Farms - Michigan
- Galactic (fka Galactic Meds) - Massachusetts, Michigan, Missouri
- LivWell - Maryland, Michigan, New York
- Society C - Michigan
- Distro 10 - Michigan
- Happy Valley - Massachusetts
- Sauce Essentials - Arizona, California, Michigan, Nevada, Ohio, Oregon
- Muha Meds - California, Michigan
- Mischief - Michigan
- The Limit - Michigan
- Traphouse Cannabis Co. - Michigan
These issues will be a hot topic at the upcoming Benzinga Cannabis Capital Conference in Chicago this Oct. 8-9. Join us to get more insight into what the wave of weed legalization means for the future of investing in the industry. Hear directly from top executives, investors, advocates, and policymakers. Get your tickets now before prices go up by following this link.
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