Oregon Cannabis Market Off to a Good Start; Concentrates and Edibles Made a Big Splash in June

BDS Analytics

BOULDER, Colo., Sept. 29, 2016 /Weed Wire/ — Oregon’s nascent adult-use cannabis market showed relatively steady growth this year, from $12.5 million in January retail sales to $24.9 million in June, according to BDS Analytics, a firm that tracks retail sales of cannabis.

With concentrates and edibles not legal for sale until June, the market relied on flower, pre-rolled joints, and a smattering of accessories to drive sales over the first five months of the year. Before the June launch of concentrates and edibles, flower sales grew at a compound monthly rate of 15 percent per month and pre-rolled grew at a 23-percent monthly rate. The two categories combined reached $21 million in May.

But the introduction of concentrates and edibles in June shook up the market and those categories will continue to have a significant effect going forward. With combined June retail sales of $6.2 million, those two categories gobbled up 24-percent share, while flower fell from 85 percent share in May to 62 percent in June and pre-rolled dropped from 10 percent to 7 percent in the same period.

If other states are a guide, flower’s share of total sales will continue to decline even as actual sales of flower increase. Over Washington’s two years of legal adult-use sales, flower’s share declined from 87 percent to 61 percent. One notable distinction with Oregon, however, is the rate of decline in flower’s share. At 62 percent, Oregon flower dropped immediately to a level that Washington and Colorado took more than a year-and-a-half of steadily increasing concentrate and edibles sales to reach.

The new categories did not affect flower’s average retail selling price, which stood at $9.33 per gram, 1.9 percent above the six-month average. Pre-rolled prices were stagnant at 4 cents below their six-month average.
In Oregon in June, more than 50 brands vied for share in the concentrates category and 90 in edibles. The top 10 concentrates brands averaged sales of $240,000 each and accounted for 56 percent of concentrates dollars.

June 2016 retail sales volume (adult use)
Flower: $15.4M
Pre-Rolled: $1.8M

Concentrates: $4.3M
Prefilled Cartridges: $2.3M
Oil: $0.6M
Shatter: $0.3M
Live Resin: $0.1M

Edibles: $1.6M
Candy: $0.6M
Chocolates: $0.5M
Infused Foods: $0.2M
Beverages: $0.1M

Douglas Brown

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