LeafLink Releases Annual Wholesale Cannabis Pricing Guide
Click here to get your free copy of the guide
LeafLink, a tech-enabled wholesale marketplace for the cannabis industry, today released its Wholesale Cannabis Pricing Guide 2020. The comprehensive report analyzes a full year of pricing data from LeafLink’s marketplace and aims to provide guidance for cannabis businesses on how to strategically price their products to increase sales.
LeafLink analyzed data across its 7,500 brands, distributors, and retailers in 27 North American markets. Over $3 billion wholesale orders, or an estimated 32% of the U.S. wholesale cannabis commerce, flows through the LeafLink marketplace annually. The pricing data compiled is based on the analysis of over 109,000 SKUs across the top five product categories on LeafLink by market share: cartridges, concentrates, edibles and ingestibles, flower and pre-rolls. The guide includes data deep-dives into the following U.S. cannabis markets: Alaska, Arizona, California, Colorado, Maryland, Michigan, Nevada, Oklahoma, Oregon, and Washington.
The report also includes Category Pricing Ranks to help readers understand how one market compares to another. Across all categories, Alaska continues to have some of the most expensive cannabis prices due to high taxes and high distribution costs. Maryland, a medical-only market home to only a few cultivators, and Michigan, which only launched recreational sales in December of 2019, also had some of the highest cannabis prices. Conversely, Oregon and Washington have some of the most affordable cannabis prices in the country, likely due to high-saturation of cultivators in those markets.
Nationally, flower saw the largest year-over-year pricing increase of any category. At the end of 2020, the average wholesale price stood at $1,940 per pound for an increase of 18%. Flower also had some of the most varied pricing between states, with a high of $3,185 per pound in Alaska to a low of $1,096 per pound in Oregon.
While cannabis prices remained relatively stable across most categories, edibles and ingestibles showed the most dramatic price drop since 2019. The national average wholesale price of edibles was $0.08 per mg, a 11% decline from the previous year. However, the category saw the largest year-over-year increase in the number of products available on the marketplace (+258%).
“The LeafLink Wholesale Cannabis Pricing Guide empowers businesses to better execute on their 2021 strategic planning by benchmarking pricing ona state and national level,” said Alex Feldman, General Manager of LeafLink Insights & Marketing Services. “Pricing is an important differentiator among brands in our increasingly competitive industry. Whether it is used to signal a product’s premium status, or serves as a reflection of structural dynamics in a state or category, it is arguably the single most important driver of a company’s profitability.”
The guide also includes information on which categories are the most popular and the most competitive. In addition, this year’s report examines how affordable and premium priced products are purchased by dispensaries.
To download a free copy of the Wholesale Pricing Guide 2020, please visit www.pricingguide.leaflink.com/2020.
