Benzinga - by Abbey Higginbotham, Benzinga Staff Writer.
The New Jersey cannabis market has experienced remarkable growth, particularly in the pre-roll segment, which saw an 8% increase in sales, reaching $25.5 million in the last quarter of 2023. This growth is part of a broader 23% rise in overall cannabis revenue for the state during the same period. Despite challenges such as limited brand diversity, the pre-roll market presents considerable opportunities for expansion as market conditions continue to evolve.
Market Leaders and Emerging Trends Leading the pre-roll market in New Jersey is Verano Holdings Corp (OTC:VRNOF), which captures a 21% share with its extensive line of sleek and modern pre-rolls. Miss Grass follows closely with its user-friendly 0.4 gram, 5-pack minis, accounting for nearly 13% of the market share. Despite holding a smaller share, Edie Parker has seen a notable 166% increase in revenue, reflecting a growing consumer interest in lifestyle-oriented cannabis products.
Future Projections and Regulatory Challenges The market report by RollPros projects that New Jersey’s pre-roll revenue could surge from $156.1 million in 2024 to $332.5 million by 2027, marking an impressive growth of over 113%. This optimistic outlook is, however, tempered by regulatory and licensing hurdles that have limited brand diversity and kept prices high. As these barriers begin to ease, the market is expected to become more competitive and diverse, providing further opportunities for growth.
Infused Pre-Rolls: An Untapped Potential Despite their popularity in states like California, infused pre-rolls remain a small fraction of New Jersey’s market, representing only 7% of pre-roll sales. This segment presents a substantial opportunity for brands to innovate and capture a larger market share as consumer preferences evolve.
Spotlight on New Jersey's Cannabis Market For those looking to capitalize on these opportunities, the upcoming Benzinga Cannabis Market Spotlight event in New Jersey on June 17 is a must-attend. Held at the New Brunswick Performing Arts Center, this event will bring together entrepreneurs, investors, and industry professionals to discuss the future of the cannabis market in New Jersey and beyond.
Attendees will be able to engage with industry leaders, explore market trends, and forge valuable business connections. The event will also feature the Canna Founders Pitch Competition, which will provide a platform for emerging businesses to showcase their products and attract potential investors.
As New Jersey’s cannabis market continues to mature, the pre-roll segment stands out as a promising area for growth. With leading brands like Verano, Miss Grass, and Edie Parker driving innovation, consumer interest, and regulatory hurdles gradually being addressed, the market is poised for significant expansion in the coming years. T
he Benzinga Cannabis Market Spotlight event will provide a platform for stakeholders to navigate these changes and explore new opportunities in this dynamic market.
Cannabis rescheduling is here. Want to understand what this means for the future of the industry? Hear directly for top executives, investors, and policymakers at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.
Now Read: Easy-To-Trade Cannabis Stocks: Insights Into How Trading Activity Affects These Investments
Photo: Elsa Olofsson On Unsplash
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.