Each cannabis product in a graph

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Each cannabis product in a graph

There are few markets that are seeing growth comparable to cannabis, with 7,000 additional products hitting pharmacy shelves in 2020 compared to the previous year. However, for novice cannabis users and investors, the different products and how to use them can be overwhelming.

This graphic, sponsored by Tenacious Labs, provides an overview of cannabis products and is part of a multi-part series covering various factors affecting the future of cannabis.

Let’s break down the cannabis products on the market today.

1st flower

First, the cannabis flower is the ingestible part of the cannabis plant and the most popular way of consuming it. It is grown, harvested, dried and cured as part of the manufacturing process before it reaches the end consumer. Due to its popularity, it also represents the largest component of the US legal market.

2021 some $10.9 billion bought in dried herb or “buds”. Additionally, pre-rolled products, which are pre-rolled products manufactured by pharmacies, generated $2.2 billion. The psychoactive effects of bud consumption are felt almost immediately, which remains a major appeal.

2. Cartridges, Concentrates and Extracts

Cannabis concentrates are a growing category that has taken the market by storm in recent years. They come in a variety of forms including raw concentrates, cartridges, and extracts. To make them, impurities must be removed from the plant, leaving only the desired compounds like cannabinoids and terpenes.

This highly concentrated form of cannabis results in THC levels of 80-90%, compared to the 10-20% range most commonly found in dry herbal flowers. Hit raw concentrates $2.2 billion on legal US sale in 2021. And cartridges, which are products intended for vaping and are usually paired with a battery accessory, were worth $5.1 billion.

The appeals associated with concentrates include a higher dose resulting in a stronger effect, as well as a more discreet experience as they have little to no scent.

3. Edibles

Next come edibles, where the THC is metabolized by the liver and consumed through fortified foods and beverages. This leads to a different experience than inhaling. For example, the euphoric or psychoactive effects usually last much longer and can take 1-2 hours to kick in.

The legal groceries market in the US is growing rapidly. It posted sales of $2.3 billion in 2021, however, is expected to reach a value of $8.5 billion by 2027. These growth prospects haven’t gone unnoticed, in fact, the alcohol industry is betting heavily on cannabis. Recently, there have been waves of investments and acquisitions targeting cannabis-infused beverages.

A key growth driver comes from the health-conscious consumer, who may want to avoid smoking altogether.

4. Themes and Miscellaneous

Last are themes and other products. Topicals are CBD-infused non-psychoactive products like lotions, balms, and oils. These are gaining notoriety for their wellness properties, including relieving aches, pains, and inflammation. However, the market remains relatively modest with a market value of $200 million. Additionally, the topical product market appeals to those not interested in psychoactive effects and is particularly popular with women and pet owners.

Other products include papers, tubes, batteries and all other accessories that also offer remarkable income and opportunities.

Measuring the market share of cannabis products

With all these products, let’s take a look at the market share. Although edibles, vapes, and concentrates have risen tremendously over the years, flowers still remain number one and represent 43% of legal sales, followed by cartridges with 20.3% market share.

product Market share (%) Market Value ($B)
flower 43.4% $10.9 billion
cartridges 20.3% $5.1 billion
edible 9.2% $2.3 billion
concentrates 8.8% $2.2 billion
roll forward 8.8% $2.2 billion
subjects 0.8% $0.2B
equipment 8.8% $2.2 billion

Seasonality also plays a role in cannabis use. As dried flowers are more likely to be consumed outdoors, data shows that they lose market share during the cold winter months.

The next chapter

Cannabis products have come a long way since their beginnings when strains were considered a choice between an indica or sativa strain. As the industry evolves and more money pours into the space, we should see product innovation accelerate even further.