Benzinga - by Nicolás Jose Rodriguez, Benzinga Staff Writer.
In a recent sector analysis by Pablo Zuanic of Zuanic & Associates, key trends across four Eastern states are dissected to understand the brand landscape of the cannabis market.
Zuanic navigates through the evolving dynamics of the cannabis industry, providing valuable insights into brand positioning, market dynamics and pricing strategies across Illinois, Massachusetts, Maryland and Michigan.
Brand Strength And Market Dynamics
The report discusses the inconclusive data on whether multi-state operators (MSOs) will dominate the market, suggesting that privately owned brands frequently rank high as well.
Price Deflation And State-Specific Trends
Specifically, in the first quarter of 2024 (1Q24), flower prices were down by 6% in Michigan, 15% in Illinois, and 24% in Massachusetts, but up by 51% in Maryland.
Illinois Market Overview The Illinois market is detailed with a comprehensive breakdown of brand performance across various cannabis product formats. For instance, Cresco's High Supply leads with a 13.2% market share in the flower category.
The report notes minimal changes in product format sales mix year over year, except for concentrates and pre-rolls.
Massachusetts Market Insights In Massachusetts, the flower segment accounts for 45% of sales, with Ascend Wellness's Simply Herb and Cresco's High Supply being the leading brands.
The analysis also highlights a significant decrease in average retail prices across product formats.
Maryland's Growing Market Maryland's market is spotlighted for its notable price increase in the flower segment by 51% year over year in 1Q24, with private companies dominating the leading brands list.
Michigan's Competitive Landscape Michigan's market is characterized by its competitive landscape with a highly fragmented flower category.
Cresco's High Supply and Ascend Wellness's (OTC: AAWH) Ozone are among the top contenders.
Market Structure And Pricing Nuances
For instance, in Illinois, the flower category exhibits a tiered structure with 14 brands capturing 50% of the market. Cresco's High Supply leads with 13.2%, showcasing a diverse market with competitive pricing at $7.44/gram.
Massachusetts presents a fragmented vape market, where the newcomer Crude Boys leads with a 9.1% share, reflecting aggressive market entry strategies and pricing variations.
Maryland's market, distinct for its price uptick in cannabis flower
following the transition from medical to recreational use, sees private companies predominantly leading, with brands like Fade showing significant year-on-year growth.
Michigan's market is characterized by a highly fragmented flower sector and the lowest prices across the states, with Cresco's High Supply making notable inroads at $2.63/gram.
Pre-Roll Market Insights And Pricing Dynamics
This is contrasted with the Massachusetts market, where Happy Valley and Good Chemistry Nurseries lead the segment, underscoring the competitive nature and brand diversity in different states.
Maryland presents a more concentrated pre-roll market with the top 5 brands, including SunMed and District, commanding a 43% share, demonstrating market maturity and brand loyalty.
Michigan’s market is noted for its broad price range within the pre-roll category, with Jeeter at the high end with $14.08/g, showcasing the variance in consumer preferences and price sensitivity.
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