PRE-ROLL MARKET REPORT
Colorado
Our analysis identifies both positive trends and red flags
to help you make better decisions for your brand and business.
Executive Summary
The Colorado cannabis market growth is flatlining, though pre-rolls’ performance is a silver lining. While the overall state sales growth was a modest 0.2%, the pre-roll category outpaced it with a 4.3% increase over the same period. Pre-roll forecasts predict $133.8M in total sales by the end of 2024 and some growth in the years following.
Known for its early adoption and mature regulatory environment, Colorado’s market offers insights into future cannabis trends across the country. With 94 active brands in the pre-roll space, competition is driving innovation and product quality. There is some market consolidation versus P3M and only a slight increase in the number of brands (+5). Pre-roll products decreased by 193 SKUs.
Infused pre-roll products lead in total sales, generating about $2.37M more than non-infused options. Single packs currently dominate sales among the top 20 pre-roll products in the category, but multipacks show more consistent sales growth and a higher price per unit ($35.24). We see infused options as a predictable norm for the pre-roll market, and multipacks as a lucrative opportunity for brands to capitalize on now.
Dive into our report for a deeper look at the top players, emerging trends, and future outlooks.
Colorado
pre-roll market
by the numbers
Jan-Mar 2024
Revenue:
24.19M (+4.3%)
Standard pre-roll sales:
$10.91M
Infused pre-roll sales:
$13.28M
Total brands:
94
+5 P3M
Total products:
758
-193 P3M
Indica Strain Blends
Infused Pre-Roll (1.5g), 1 Pack
Sativa Strain Blends
Infused Pre-Roll (1.5g), 1 Pack
Hybrid Strain Blends
Infused Pre-Roll (1.5g), 1 Pack
Bubble Joint Pinners
Hybrid (4.5g), 9 Pack
Jupiter Joint
Hybrid Strain (1g), 1 Pack
Who’s Smoking
Kaviar
Green Dot Labs
710 Labs
Battle of the Brands
The Colorado pre-roll market is a battleground with 94 active brands vying for consumer attention. Interestingly, while the number of active brands has increased, the total number of pre-roll SKUs has decreased considerably.
Why is that? Our guess would be a focus on quality. More resilient (and specialized) brands like Kaviar, Green Dot Labs, and 710 labs are emerging as leaders, indicating that those offering superior products and value-added solutions are doing particularly well. Especially when compared to less mature markets like New Jersey, the distribution of category share across brands and diversity of products also reflects this trend.
Infused Pre-Rolls: The Flavor of the Year
This is the new normal. Infused pre-rolls raked in $13.28 million for the period and populated 9 of the top 10 pre-roll SKUs. At 54.9% of total sales in the pre-roll category, it seems these potent products have already won the hearts (and minds) of the people. We see some market contraction for infused products versus P3M, and with that, indication that innovation is going to be more important than ever in order for brands to succeed.
Kaviar’s single packs of infused pre-rolls look like the items to beat, and their overall decrease in sales performance versus P3M seem to underscore a top dog status that might continue to be chipped away by the competition. Our near-future guess is it might come in the form of multipacks.
Classic Comeback
Colorado had a very unique data point compared to the other markets we’ve analyzed. Non-infused pre-rolls are experiencing a bit of a mini-renaissance. ‘Classic’ pre-rolls grew at a rate of 0.9% while infused options declined by a similar percentage. This growth, coupled with a 45.1% share of the pre-roll category shows us there’s still plenty of love for the original experience.
The competitive pricing of non-infused pre-rolls compared to their infused counterparts make them an attractive option for budget-conscious consumers who still want a quality product. On average, non-infused pre-rolls were priced at around $9.98 per gram, whereas infused pre-rolls average $13.67 per gram.
This uptick of non-infused pre-rolls show the importance of diversity in product offerings. Brands that can cater to both ends of the spectrum—those seeking innovative, high-potency products and those preferring traditional, straightforward options—are likely to capture a larger share of the market.
Multipackin’ Heat
Multipacks show a growing presence in the market, with strong percentage increases in both sales and units sold among the top category products. This trend suggests a shift in consumer behavior towards purchasing in larger quantities, likely driven by perceived value and convenience.
Single packs, while still popular, had more variability in growth rates. For example, Stratos’ Jupiter Joint saw a significant increase in units sold for its sativa strain (+111%), while the hybrid strain experienced a steep decline (-42%). Meanwhile, multipacks generally displayed substantial increases in units sold. Products like Toast’s Cannabis Cigarettes and Lowell Herb Company’s multipacks had remarkable growth, with units sold increasing by +439% and +176%, respectively.
Summary
Overall, the many factors affecting Colorado cannabis make general trends a bit hazy. The Colorado pre-roll market in 2024 is characterized by growth, significant competition, and evolving consumer preferences. With 94 active brands and a 4.3% increase in sales, the pre-roll segment continues to outpace the overall state cannabis market. Infused pre-rolls dominate, holding 54.9% of the market share, but there is a notable uptick in non-infused pre-rolls, which may cater better to budget-conscious consumers.
Multipacks are gaining traction, teasing a further shift in the coming months, while single packs are showing some variability in performance. This diversity in consumer preferences highlights the importance of offering a wide range of products or further specialization to capture different market segments.
Brands like Kaviar, Green Dot Labs, and 710 Labs are leading the way, demonstrating that quality and innovation are key to success in this competitive landscape. Staying ahead with innovative products and maintaining high standards will be crucial for brands to succeed.
RollPros is the manufacturer of the Blackbird, the only automated joint machine that makes joints the same way you do: rolled, not stuffed. Brands across the US and Canada use the Blackbird to create unique, value-added products that 4/5 of consumers prefer over pre-rolls made with cones. RollPros is dedicated to helping customers build successful, profitable brands through continuous innovation, exceptional customer support, and category expertise.
Want to learn more? Reach out to one of our Pros now.
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