Launching a cannabis product in today’s market can be a challenging adventure. Especially when you’re spending all your energy, and money, on developing a product that might fail. It might sometimes even feel like you’re on a sinking ship! As of late June 2022, only 14% of all products in the US that were launched since January 2020 are still on the market. This varies by category. The median lifespan of a US Flower product is only 100 days, while the median lifespan of a Beverage is 315 days. Strain-focused categories like Flower, Pre-Rolls, Concentrates, and Vapor Pens tend to have significantly shorter product lifespans due to the cyclical nature of harvests and strain popularity.
When we focus our analysis on non-inhalable categories like Edibles, Beverages, Topicals, Capsules, and Tinctures & Sublingual products, we find that 43% of products launched since the beginning of 2020 are still on the market. That means that more than half of these products have failed at some point in the past 2.5 years. A full third of products from these categories never sold for more than 180 days.
Make sure any new product you bring into the market is backed by a strategy driven by data. It could be the lifesaver your product needs to survive the industry. Reach out today to unlock your survival kit to identify strategies to improve your product performance.
Track cannabis sales and market performance
Key metrics defined
These six key metrics from the previous month will provide you with a pulse check on legal cannabis markets. Below, you'll find data on year over year growth, basket size, and more.
Total monthly sales for the previously completed month.
YoY Sales Growth.
Year over year growth of sales (For example, November 2022 compared to November 2021).
Avg Item Price
The average price of a cannabis item in the most recently completed month.
Avg Basket Size
The average size (in sales $) of a retail basket in the most recently completed month.
Median Store SKU Counts
The number of distinct SKUs sold in the median store in the most recently completed month. Median was used instead of an average to remove the effects of outlier stores.
Median store Like-Store-Sales-Growth MoM - The month over month growth in sales for the median sample store (for example, January 2022 vs. December 2021). “Like stores” are filtered to exclude any newly opened stores or recently disconnected stores.