Pre-roll value test: How the evolving market impacts costs and gross sales


A better take a look at how pricing and different elements are contributing to the rise of pre-rolls.

By Harrison Bard, CEO and co-founder Customized Cones USA

Within the ever-evolving panorama of legalized hashish, the pre-roll emerges as a potent image of accessibility and comfort. This straightforward product, basically ready-to-smoke hashish rolled right into a paper, has not solely captured the hearts of shoppers however has additionally dominated gross sales, significantly in 2024. Now accounting for 15% of the market, pre-rolls have confirmed themselves as indispensable within the burgeoning hashish business.

Let’s take a more in-depth take a look at how pricing and different elements are contributing to the rise of pre-rolls.

Big selection of pre-roll costs

A significant factor within the pre-roll’s reputation is undoubtedly its affordability. In April 2024, the typical price of a pre-roll dipped to $6.73, down from $8.03 the earlier yr, marking a major 16% lower, based on information from hashish analytics agency Headset. This development is essentially attributed to lowered materials prices in maturing markets and regardless of the results of a rise within the luxury-infused pre-roll sector, which noticed a development of 27.9% year-over-year.

But, pricing dynamics differ vastly throughout completely different states, reflecting the levels of market maturity, with costs dropping as manufacturing will increase.

Michigan, nevertheless, stands as an outlier, main the pack not simply in gross sales however in affordability, regardless of solely opening its leisure market in 2019. Customers there bought a staggering 22.7 million pre-rolls at a mean value of $6.39 per gram, considerably decrease than the earlier yr. The overwhelming majority (88%) of Michigan’s pre-roll merchandise are priced below $10, with over half costing lower than $5.

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This contrasts sharply with states like New York, the place the nascent market and sluggish license roll-out hold costs steep, averaging $24.81 for normal pre-rolls and $30.75 for infused ones.

Pre-roll value cycle

The pricing tendencies in hashish markets are cyclical, usually beginning excessive in newly legalized states because of preliminary demand outstripping provide. Over time, as markets stabilize and manufacturing will increase, costs usually lower, and extra flower is accessible for extraction to make concentrates. As these costs drop additional, the price of infused pre-rolls – made with a mixture of flower and a focus – additionally start to fall.

This sample is obvious in states like Colorado, Washington and Oregon, which have been among the many first states to open leisure hashish markets in 2014 and 2015, now get pleasure from a few of the lowest pre-roll costs because of their mature markets with vital parts of their merchandise additionally priced below $10.

Washington boasts the bottom costs nationally, with pre-rolls averaging $6.19 and infused pre-rolls at $6.34. Oregon and Colorado observe, with common pre-roll costs at $7.51 and $7.98, respectively. In Oregon, this can be a slight enhance from the earlier yr, influenced by the gross sales of higher-priced infused merchandise.

Growing markets like Massachusetts (2018), Arizona (2021), Nevada (2017) and California (2018), which have extra not too long ago legalized leisure hashish, present intermediate pricing. Massachusetts’ pre-rolls common $9.83, whereas Arizona has seen a lower to $11.87, down from $13.36 in 2023. Nevada pre-rolls sit at a mean of $11.92 whereas California, which ranks second in complete items offered (12.6 million), averages $14.11. These states nonetheless additionally expertise excessive costs for infused pre-rolls, reflective of a creating market that hasn’t but reached full maturity.

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The pricing cycle can also be seen within the latest markets resembling Illinois, Missouri, Maryland, and New York. These states have increased common costs because of ongoing regulatory developments and the gradual scaling of manufacturing capacities. Illinois (2020) stories a mean pre-roll value of $19.24, whereas Missouri (2023) lists a mean of $14.48. Maryland (2023) and New York (2022), nonetheless within the early levels of their market improvement, have common costs of $14.84 and $24.81, respectively, indicating that their markets are nonetheless adjusting to demand and regulatory frameworks.

Planning forward for pre-roll success

The trajectory of pre-roll pricing and gross sales underscores a broader narrative inside the hashish business. As states transfer by way of completely different levels of market maturity – from the preliminary growth following legalization to a extra secure and aggressive market – costs are likely to stabilize and change into extra consumer-friendly. This sample not solely impacts shopper habits but in addition shapes the methods of producers and retailers who should adapt to the evolving panorama.

Besides in Michigan, which is defying the standard market tendencies by sustaining low costs alongside excessive gross sales volumes, suggesting a extremely environment friendly market that will function a mannequin for different states.

Because the hashish market continues to broaden, stakeholders – together with growers, processors and retailers – want to remain knowledgeable of those tendencies and put together for the shifts in shopper expectations and market situations. Understanding the dynamics of pre-roll pricing and gross sales is essential for sustaining competitiveness and capitalizing on the rising demand for this handy, accessible hashish product.

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Total, the hashish business, with pre-rolls on the forefront, is not only rising – it’s evolving, pushed by shopper preferences, regulatory modifications and market maturity. This evolution presents each challenges and alternatives for these concerned within the business, from growers to shoppers, highlighting the significance of agility and planning in navigating this profitable subject.


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