Cannabis concentrate sales reached 70% Annual Growth Rate, projected to reach nearly $3B in 2018
BOULDER, Colo. — Sept. 18, 2018 — Consumer spending on cannabis concentrates in the United States is projected to grow 49% to reach $2.9 billion in 2018, second in size only to flower, according to the “Concentrates: The Hottest Product Category in Cannabis” report released today by Arcview Market Research in partnership with BDS Analytics. By 2022, U.S. concentrate product sales are estimated to hit $8.4 billion and nearly match the $8.5 billion in flower sales forecast for that year.
“As the cannabis industry matures, we’ll likely see new product categories catch fire with consumers,” said Troy Dayton, CEO of the Arcview Group. “Concentrates are the first category to do that, but it’s just the beginning of a revolution in how cannabis is consumed now that it’s becoming legal around the world.”
According to the report, concentrates’ share of total dollar sales will reach 27 percent of all U.S. cannabis product sales in 2018, after making up just 10 percent of all products sold in 2014. Dominated by the consumer friendly vape segment, concentrates have been a key driver of overall industry growth, soaring at a 70 percent compound annual growth rate (CAGR), twice that of the overall legal cannabis market. Significantly, 58 percent of concentrate spending in 2018 will come from prefilled vaporizers, a market dominance likely to grow over the next five years.
“Technology is revolutionizing a product category that began as hand-rubbed hash in the Middle East centuries ago,” said Tom Adams, Managing Director of Industry Intelligence for BDS Analytics. “We believe the growth of the concentrate market will continue as the cannabis industry evolves and consumers look toward new and innovative delivery methods that fit their lifestyles.”
The 26-plus page report, which details the large variety of product sub-categories driving the explosion in concentrates sales, is available from Arcview Market Research and BDS Analytics for $297. It can also be obtained as part of the Cannabis Intelligence Briefing Series subscription service for $1,975, along with other recent reports including “California: The Golden Opportunity?” and “The State of Legal Marijuana Markets, 6th Edition.”
About Arcview Market Research:
Since 2011, Arcview Market Research has published over 20 reports analyzing and forecasting the rapidly evolving cannabis space. Arcview’s flagship annual report, The State of Legal Marijuana Markets has become the industry standard for market analysis and data in the sector. In 2017, Arcview Market Research partnered with BDS Analytics to add more robust point-of-sale data and consumer insights to its offerings. Arcview Market Research is a project of The Arcview Group. Founded in 2010, The Arcview Group is responsible for a number of groundbreaking ventures in the cannabis industry. The Arcview Investor Network has helped more than 1200 accredited investors put more than $200 million behind 190 companies. In 2015 Arcview became a partner in Canopy, the first seed-stage mentor-driven business accelerator. Arcview is also co-founder of Cannasure Insurance Services, the leading provider of business insurance to the cannabis industry. Forbes Magazine recently named Arcview among the top 5 financial firms in the cannabis sector.
About BDS Analytics:
Headquartered in Boulder, Colo., BDS Analytics provides businesses with comprehensive, actionable, and accurate cannabis market intelligence and consumer research. The company provides a holistic understanding of the cannabis market by producing insights from dispensary point-of-sale systems through its market-leading GreenEdgeTM platform, driving consumer research with its Cannabis Insights Group, and generating market-wide cannabis industry financial projections. To learn more about how you can utilize BDS Analytics’ comprehensive market research, please visit www.bdsanalytics.com.
North 6th Agency (for BDS Analytics)