Near real-time results reveal chaotic cannabis market dynamics continue
LOUISVILLE, Colo., March 24, 2022 (GLOBE NEWSWIRE) -- BDSA, provider of the most accurate and comprehensive retail sales data for the cannabis industry, today announced the launch of BDSA’s Rapid Retail Sales Tracking that offers near real-time tracking of cannabis retail sales. Recent reports reveal sales recovery in mature markets including Colorado, California, and Oregon, while new markets, such as Illinois and Massachusetts, continue to show strong growth after a dip in January.
This dichotomy reflects underlying market economics driven by price drops competing with increased unit sales in mature markets, and new retailer locations and expanded licensing pushing growth in new markets. Declines in the second half of 2021’s fiscal year impacted the largest markets as pandemic stimulus activities dried up and inflationary pressures took hold. These trends continued into January 2022.
“Despite moderate sales throughout January in several legal markets, BDSA Rapid Retail Sales Tracking shows strong recovery with positive week-over-week growth in February and March. We expect this growth to accelerate throughout 2022, especially in new and emerging markets,” said Jessica Lukas, chief commercial officer at BDSA. “BDSA’s new tracking solution offers rapid insights into the cannabis market to enable unparalleled product innovation.”
BDSA’s tracking metrics show that Arizona, an emerging market, saw a 10% drop in dollar sales in January before stabilizing in February and March. Colorado, a mature market, also showed positive weekly trends in February and March after an 11% dip in January 2022 versus January 2021.
Data also reveals that price declines are ubiquitous across categories in several markets including California, where market challenges are forcing rapid changes across the industry and leading to financial distress among many cultivators, manufacturers and retailers. Flower, the largest category in California, shows a +10% Average Retail Price (ARP) decline in the last six months. This price compression, plus tax and regulatory burdens, is forcing many California operators to make adjustments to business operations to stay afloat.
BDSA’s Rapid Retail Sales Tracking is now available to provide up-to-date market performance by state, category, brand, and pricing across BDSA’s 12 tracked U.S. markets (Ariz., Calif., Colo., Fla., Ill., Mass., Md., Mich., Mo., Nev., Ore., and Pa.).
About BDSA
Headquartered in Louisville, Colorado, BDSA helps businesses improve revenues, reduce innovation risk and prioritize market expansion with accurate and actionable cannabis market intelligence, consumer research and advisory services. The company provides a holistic understanding of the cannabis market by generating insights from point-of-sale data, wholesale data, consumer research and market forecasts. To learn more please visit www.bdsa.com.
Media Contacts
Justine Goodiel & Leah Stapleton
UPRAISE Marketing + PR for BDSA
415-397-7600
bdsa@upraisepr.com
