A deep dive into the Arizona cannabis market
March 7, 2023
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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.
Year over year growth of sales (For example, November 2022 compared to November 2021).
The average price of a cannabis item in the most recently completed month.
The average size (in sales $) of a retail basket in the most recently completed month.
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.
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.
In Canada, Capsules are a relatively small category making up just 0.9% of total sales in December. Ontario was the only Canadian province able to crest the $1M mark last month for category sales. While a small category compared to kings such as Flower and Pre-Rolls, Capsules, a product typically associated with wellness, beat out other products of its kind such as Topicals as well as Tinctures & Sublinguals.
Florida, the largest medical market in the US, showed the strongest sales performance for the Capsules category in December bringing in ~$1.8M last month. Capsules in Florida also captured the largest share of total sales of any emerging market with 1.1% of total sales coming from Capsules. Comparing this figure with that of Michigan’s (0.2%), Florida shows a clear preference for this category compared to similar markets.
California is the clear leader within the legacy market not only for total sales, but also popularity of the category. Capsules make up 1.8% of total sales in the Golden State closely followed by Colorado (1.6%), before dropping off in Washington (0.5%) and Nevada (0.5%).
Canadian markets have found a way to grow in 2022 during a period of demand correction, pricing compression, and sales fluctuation month to month.
Massachusetts, along with other emerging markets such as Michigan and Illinois, have experienced double digit growth in 2022. However, that doesn’t mean they have been spared of the pricing compression woes of the industry as large. As their new market converges on pent up demand, diving wholesale and retail prices could spell the same trouble for emerging markets that currently plague US legacy markets.
Washington cannabis sales decline for first time in the decade since legalization. The post-pandemic market correction and pricing compression has had a lot to do with Washington posting their first full year of a shrinking market. This is a shared experience among other legacy markets such as California, Oregon, Colorado, and Nevada.
