Pre-roll Market: Emerging Trends in Pre-roll Market 2024

Key Takeaways

• The use of infused pre-rolls should help the pre-roll market grow even further.
  
  
  
• Pre rolls also benefit from consumers’ desire for convenience; therefore, they are increasingly popular.
  
  
  
• There is technological innovation in packaging and production, which improves the quality and attractiveness of the products.
  
  
  
• There are regional disparities in shares of the market, with young markets indicating a strong appetite.
  
  
  
• The importance of data analytics is vital in deciphering consumers and the market.
  
  
  

In the cannabis sector, the pre-roll market, one that sells joints that are already rolled for consumers, is growing drastically as trends change and more people consume cannabis. Heading into 2024, there are more than a few channels, from the improvement in packaging designs to the growing number of infused items, that will be driving this market. This article looks into some of those factors that develop within the pre-roll market to suggest how businesses should position themselves in order to be effective.

What is the Preroll Market and Why is it Growing?

The pre roll market is a subsection of the cannabis market that focuses on pre-rolled joints. Consumers appreciate these products because they are quick to use and do not have to be rolled by the user directly. Such joints are the finished flattened ends put in cylindrical form, and usually contain premium flower combined with several types of strains.

Key Factors Driving Consumer Demand for Pre-Roll Market

Several factors are contributing to the growth of the pre-roll market:

• Convenience: Pre-rolls are ready for use and do not need to be prepared beforehand.
  
  
  
• Variety: Customers have different strains and blends from which to select.
  
  
  
• Social Experience: Pre-rolls can be passed around friends, enhancing social aspects.
  
  
  

Why Convenience and Accessibility Matter for Growth

The availability of pre-rolls has also fueled their demand, thereby increasing sales. Pre-rolled cannabis products are ready for consumption and do not require any preparation, which appeals to primary consumers. As a result, these products dominate the market. Infused pre rolls occupied as much as 44.4 percent of the market in the first two quarters of 2024, which means these high-end goods have found a ready market.

How Big is the U.S. Pre Roll Market in 2024?

The state of the pre-roll market is not just growing; it’s evolving, with new consumers and trends shaping its future.

Market Value Projections and Revenue Estimates

The US pre-roll market is on track to achieve $3 billion in sales by 2024. Millenials, who make up 45% of this market, are expected to account for nearly half of this revenue, choosing pre-rolls over other cannabis products.

Growth Patterns in Key U.S. Regions

Pre roll growth is not consistent for all the demographics and varies region wise. Few stats worth mentioning are:

• California: California remains the largest market with $749.3 million in sales from April 2023 to April 2024.
  
  
  
• Michigan: Exhibits constant upward trends in pre roll sales which matches the growth trends of the market.
  
  
  
• Massachusetts: Despite general market losses, pre roll sales were up 2% showing an increase in sales of the products.
  
  
  

The Role of Custom Cones USA in Pre-Roll Packaging

Custom Cones USA takes part in the current market for ready-to-roll cones, leading the new ideas and assisting brands in the competitive market.

Innovations in Pre-Roll Packaging by Custom Cones USA

Custom Cones USA always comes in first when it comes to pre-roll packaging. They have a range of alternatives for manufacturers as well as consumers. Here are some key innovations:

• Cost-effective Multi-packs: These are also very convenient as they combine different strains and the consumer does not have to spend a lot of money.
  
  
  
• Distinctive Packaging: Distinctive packages and labels help the brands to promote themselves.
  
  
  
• Humidity packs: this is a necessity for preserving the freshness of the product, especially in the case of multi-packs that are sold in the open market.
  
  
  

Customizability and Branding Opportunities in Cannabis Industry

The pre-rolls’ packaging ability to be customized is a serious factor for any brand that wants to be visible. Custom Cones USA offers:

1. Branded pre-rolled cones: Companies can order pre-rolled cones that are directly printed with company logos and images.
   
   
   
2. Custom containers including tins and slider boxes: Companies can use appropriate boxes for their products.
   
   
   
3. Labeling options: These labels tell the user which strain type is in the filters; e.g. “indica,” “sativa.”
   
   
   

What is Driving the Popularity of Infused Pre-Rolls?

Infused cannabis pre-roll is becoming a favorite among marijuana users.

Understanding Infused Pre Rolls and Their Appeal

Such products infuse cannabis concentrates into a traditional flower, which makes it stronger. Infused pre-rolls could, however, account for sales of more than 1.75 billion dollars from January 2023 to June 2024, with 44.4% of the market share in the first half of 2024[¹]. 

This growth depicts that a lot of consumers are in search of stronger options that will provide a better experience.

How Infused Products Cater to Premium Consumers

1. Higher Potency: Most people who use infused pre-rolls do so for the reason that most contain high levels of THC, or Tetrahydrocannabinol, the psychoactive chemical found in cannabis plants.
   
   
   
2. Unique Flavors: Flower and concentrates make it possible to create totally new flavor combinations most likely to attract consumers in search of something new.
   
   
   
3. Convenience: One reason why users may buy such products is the fact that pre-rolled cannabis eliminates the need for rolling paper and the hassle that often comes with preparing marijuana for smoking.
   
   
   

How is Pre-Roll Market Share Changing Across the U.S.?

The state of the pre roll market continues to change.  There is an increase in sales revenue of pre-roll products. Understanding such changes is important for brands.

Regional Market Share Variations in the U.S.

Sales in Michigan are quite good and the other states follow with such mixed results as California and Massachusetts. Here’s a brief look at how pre-roll sales are changing trends:

• California: The poor cannabis sales turned into rather favorable pre-roll business, registering a 2% rise in revenue between Q2 and Q3 in June 2023.
  
  
  
• Massachusetts: The trend was rather the same with Massachusetts which also recorded a 2% increase in pre-roll sales even if the general market performance fell flat.
  
  
  
• Michigan: The state achieved almost $54.9 million units in July 2024 and reported the sales to be at an all-time high, expectations were that demand should be of high level[²].
  
  
  

New Markets and Their Impact on Pre-Roll Demand

New markets are also shaking things up in the pre-roll segment. The new markets impact the cannabis industry as a whole since growth in sales lead to more supplies and demand of the products. For example, in Missouri, the pre-roll sales went from selling $11.3 million to $25.1 million worth in February 2023. This means that new pre-roll consumers that joined the market had an easier time using the product as they were not forced to commit a lot when trying out different strains.

Established Markets Like California and Their Trends

California is still the largest pre-rolls market and achieved $749.3 million in pre-roll sales from April 2023 to April 2024[³]. However, the sales were down 4% in the previous year which is an indication of the broad market challenges. This situation underlines the need for the brands to evolve and think out of the box so as to be relevant to the consumers in what is a very competitive environment.

Trends in Pre-Roll Manufacturing and Packaging

The pre-roll market is seeing a shift towards efficiency and sustainability in production.

Efficiency and Sustainability in Pre-Roll Production

There is a paradigm shift in the pre-roll industry whereby manufacturers are now focused on increasing efficiency in production while also ensuring that the environment remains protected. Waste elimination within the company’s processes enables them to create pre-rolls at a lower cost and at a faster rate than traditional processes allow.

Advancements in Pre-Roll Machines and Technology

It is easy for producers to create quality products owing to the advancements in pre roll machines. Some of these enhancements are:

• Automated filling machines with the ability to rapidly infuse pre-rolls with concentrates.
  
  
  
• Mixed-strains packaged with multiple flavor variations.
  
  
  
• Humidity control systems that extend the shelf life of pre-rolls.
  
  
  

The Rise of the Pre Roll Eco-Friendly Packaging Solutions

Eco-friendly packaging is becoming popular among consumers, hence the rise in demand for it. Companies are now considering:

• Biodegradable packaging.
  
  
  
• Reusable containers that can keep their contents fresh over and over again.
  
  
  
• Unique packaging that promotes the goodness of brands and is eco-friendly.
  
  
  

How Does Pre-Roll Sales Revenue Compare to Other Cannabis Products?

Revenue Comparisons: Pre-Rolls vs. Flower and Vape Pens

The pre-roll market has shown impressive growth, making it a significant player in the cannabis industry. By 2024, it’s predicted that the pre-roll market should exceed $ 4.1 billion in sales. Thus making pre-rolls one of the leading sales of cannabis products. 

Factors Contributing to High Sales Revenue in Pre-Rolls

Several reasons explain why pre-rolls are leading in sales:

• Convenience: Pre-rolls are easy to smoke, and do not require the consumer to do anything, making them attractive to busy people.
  
  
  
• Variety: There are many strains and blends available, making them very appealing to many demographics.
  
  
  
• Affordability: Affordability has gone up and the price is better so they are available to many people.
  
  
  

Consumer Trends Favoring Pre-Roll Products

The popularity of pre-rolls is driven by changing consumer habits:

• Instant Gratification: Some, if not most, of the consumers love pre-rolls because of their prime simplicity and quick use.
  
  
  
• Social Experience: People love sharing pre-rolls thereby fostering interactions.
  
  
  
• Quality improvements: customers are willing to try new modifications as quality increases.
  
  
  

How Do Pre-Roll Prices Affect Sales and Consumer Choices?

The price of pre-rolls plays a big role in how many people buy them. As the price gets lower, the majority of the target market would be willing to try out pre-rolls. A few points should be kept in mind regarding the pricing of the items:

• Market Saturation: More licenses as well as flower stocks almost always will decrease costs because supply increases.
  
  
  
• Consumer Preferences: Due to convenience, many of the customers prefer using pre-rolled joints to traditional flowers.
  
  
  

Influence of Price Sensitivity on Market Reach

Price sensitivity affects how different groups of people buy pre-rolls. Here are some factors to consider:

1. New Consumers: The great majority of new consumers find pre-rolled joints much simpler to use than traditional flowers.
   
   
   
2. Quality vs. Price: Many consumers are natural bargain hunters, always willing to get the better quality with the lower price, especially when it comes to infused pre-rolled cones.
   
   
   
3. Multipack Ordering Beneficials: Pre-roll multipacks are cost-effective, therefore appealing to the users.
   
   
   

What Role Do Analytics Firms Like Headset Play in Tracking Pre-Roll Trends?

Cannabis industry analytics firm Headset plays a fundamental role in pre rolled markets as they make it easier to comprehend complex data. They are the ones responsible for collecting and interpreting data on behalf of the various businesses[⁴].

The Role of Data Analytics in Cannabis Market Insights

• Market Analysis: They help in predicting which goods may sell due to identified sales trends.
  
  
  
• Consumer Behavior Tracking: Such patterns assist brands in recognizing the demands and preferences of consumers.
  
  
  
• Forecasting: They help in making changes in the business to fit the trends of the market.
  
  
  

How Headset Tracks and Reports on Pre-Roll Sales

Headset uses various methods to track pre-roll sales, including:

1. Sales Data Collection: retailers provide them with relevant data.
   
   
   
2. Market Reports: Such reports are compiled with information gathered from different sales regions.
   
   
   
3. Real-Time Analytics: Companies have the capacity to provide business information quickly.
   
   
   

Impact of Data-Driven Decisions on the Pre-Roll Market

The pre-roll market can be greatly improved with the use of data analytics. Companies that understand why their products are important and use companies like Headset can:

• Increase Inventory Efficiency: Businesses are able to identify the best selling items.
  
  
  
• Enhance Marketing Strategies: Idata makes it easy to target the right audience for the products.
  
  
  
• Boost Sales Revenue: The right decisions bring a better offering and thus increase sales.
  
  
  

What’s Next for the Pre-Roll Market as it Evolves?

New lines of product innovations are expected in the pre-roll market when the calendars flip to 2024.

Predictions for New Product Innovations in Pre-Rolls

Here are some key areas to watch:

• Infused pre-rolls would continue to spearhead innovation for those who want higher potency in the products.
  
  
  
• The emergence of mixed strain pre-rolls would create the option of exposure to different strands for consumers.
  
  
  
• Physical integration into the processes will create a for efficient and consistent pre roll manufacture since automation will be key.
  
  
  

Future Opportunities in Emerging Recreational Markets

Emerging markets are set to play a significant role in the growth of the pre-roll sector. Key opportunities include:

1. Opening markets in states that have just permitted marijuana use.
   
   
   
2. Designing products focusing on and targeting local customers’ interests.
   
   
   
3. Associating with local brands for better market penetration.
   
   
   

Conclusion

More people are getting exposed and accustomed to marijuana; hence the need for pre-rolls increases. Pre-rolls infused have developed quite an appetite, showing that the clientele base seems to demand stronger alternatives. Furthermore, mixed-strain pre-rolls find a favorable position as new innovations render easy ways of producing them. As much as the prices are falling, it presents opportunities for companies to pull more clients. In general, pre-roll is not only about sales but about shared experiences and making sure that using cannabis is not a privilege but certainly everyone’s choice.

Frequently Asked Questions

What is a pre-roll in the cannabis market?

A pre-roll is basically a cigarette with cannabis flower stuffed inside it but it is specifically made for smokers. Some people may prefer this option over making their own joints.

Why are pre-rolls becoming more popular?

Pre-rolls are becoming better because most customers who smoke are always on the go, and it gives you the ability to sample different kinds of strains without having to buy more than a grams worth.

How much is the pre-roll market expected to grow in 2024?

The pre-roll industry is expected to grow at a higher rate as more units will be sold. Customers are looking for the easiest forms of cannabis to consume.

What are infused pre-rolls?

Infused pre-rolls are what you call cannabis cigars that mix concentrates and normal cannabis buds. It is used by people who want a strong effect.

How do pre-roll prices compare to other cannabis products?

The cost of pre-rolls has been going down slowly and this is helping them to become cheaper than flower or vape pens for joints which will increase their sales even further.

What role do analytics firms play in the pre-roll market?

Data analytics firms measure and evaluate pre rolls mainly their sales. This information is useful to the industries for timely and accurate decision making in regards to their products.

References

1. Adlin, B. (2024, September 4). U.S. marijuana consumers have spent more than $4.1 billion on pre-rolled joints in the past year and a half, industry report finds. Marijuana Moment. https://www.marijuanamoment.net/u-s-marijuana-consumers-have-spent-more-than-4-1-billion-on-pre-rolled-joints-in-the-past-year-and-a-half-industry-report-finds/
2. NCIA. (2024, September 10). Member blog: Understanding Michigan’s booming pre-roll market and cannabis testing requirements |. The National Cannabis Industry Association. https://thecannabisindustry.org/member-blog-understanding-michigans-booming-pre-roll-market-and-cannabis-testing-requirements/
3. Custom Cones USA. (2024, November 21). The state of the pre roll market 2024. https://customconesusa.com/pre-roll-expert-knowledge-center/cannabis-preroll-industry-insights/
4. Headset. (2024, November 13). Pre-rolls: An analysis of category trends & performance. Headset: Cannabis Market Data and Supply Chain Software. https://www.headset.io/industry-reports/pre-rolls-an-analysis-of-category-trends-performance