Earlier this week, Canaccord Genuity sent out an industry update note focused on the U.S. multi-state operators (MSO’s). Bobby Burleson of Canaccord Genuity headlines the note with “U.S. cannabis solidly in growth mode according to BDS data.”
In August, the broad market was up 29% year over year. The leader in this growth is Arizona, which is up 46% year over year. California is up 26% year over year, and Burelson says, “California’s strong growth is contributing disproportionately to broader performance after lagging and hampering broader growth earlier this year and in 2019.” He also makes note that Nevada, which is up 34% year over year, is making a “surprisingly strong recovery despite limited tourism capacity.”
Burelson notes that there is strong flower growth while vape sales lag. Flower sales increased 50% year over year and currently consists of 45% of retail sales now. In comparison, vapes declined 1% year over year and were the only category to do so. Their percentage of retail sales also declined from 24%, now down to 19%.
Onto the specific states that are touched on in this note. First is California, which Burelson comments as having “strong growth trends continue,” as six out of the last seven months California have seen double-digit growth. Once again, flower sales are 42% of retail sales compared to 33% last year, and the only category to feel a decline was vapes, which fell from 30% to 22% over the last year.
Colorado sales increased 24% year over year. Savvy viewer will likely see a trend forming here – flower sales grew in market share from 41% to 45%, and sales increased 37% year over year. At the same time, the vape market share declined from 19% to 15% year over year and was the only category to have