Cannabis concentrates and extracts have seen significant growth and evolution in Canada since the legalization of cannabis in 2018. However, in 2024, we have seen a shift with only certain categories growing, like infused pre-rolls.
Category Importance June 2042 YTD in Dollars
| Share | Change | |
| Flower | 40.6% | 0.5% |
| Pre-roll | 20.0% | 20.9% |
| Vapes | 17.4% | 11.6% |
| Concentrates | 12.5% | 9.7% |
| Edibles | 4.3% | 7.0% |
| Beverage | 1.9% | 3.8% |
| Capsules | 1.5% | -18.1% |
| Oil | 1.1% | -15.1% |
| Topicals | 0.3% | -14.7% |
Source: SpringBoard
Here are some key trends and insights from SpringBoard:
Market Growth and Product Diversity
Increased Popularity: Cannabis concentrates and extracts have become increasingly popular among consumers. This category includes products like shatter, wax, rosin, oils, hash, and infused pre-rolls.
Product Innovation: Companies are continually innovating to create new and unique products. This includes advancements in extraction methods and the creation of novel concentrates.
Potency and Purity
High THC Content: Concentrates are known for their high THC levels, often exceeding 70% THC, appealing to consumers seeking strong effects.
Purity and Quality: There is an increasing focus on the purity and quality of concentrates. Consumers are becoming more aware of the extraction processes and the importance of contaminant-free products.
Extraction Techniques
Solvent-Based Extraction: Methods like Butane Hash Oil (BHO) and CO2 extraction are common. These techniques can produce highly potent products but require careful handling to ensure safety and purity.
Solventless Extraction: Methods like rosin pressing and ice water extraction are gaining popularity due to the perception of being more natural and producing cleaner products.
Consumer Preferences
Terpene Preservation: Consumers are showing a growing interest in products that preserve the natural terpenes of the cannabis plant, which contribute to the flavour and entourage effect.
Full-Spectrum Extracts: There is a trend towards full-spectrum extracts that maintain a broader range of cannabinoids and terpenes, believed to provide more balanced and nuanced effects.
Market Dynamics
Price Trends: The price of cannabis concentrates can vary widely, influenced by factors such as product quality, brand reputation, and market demand.
Illicit Market Impact: While the legal market continues to grow, the illicit market still plays a role, particularly in offering lower-cost products. However, consumers are increasingly shifting towards legal products for safety and quality assurance.
Concentrates and extracts represent 16.1% of the overall cannabis industry year to date in 2024. This reflects the importance of other types of products within the market and suggests potential for further growth and diversification in the coming years. As regulations evolve and consumer preferences shift, we can expect continued innovation and expansion within concentrates, specifically infused pre-rolls.
Concentrates/Infused Pre-rolls
Shatter, wax, rosin, hash, crumble and infused pre-rolls, are a standout favourite in the Canadian market. This segment of the market now represents 13.4% of the cannabis industry in Canada, with infused pre-rolls leading the way growing in double digits.
Capsules
Cannabis capsules are gel caps or pills filled with cannabis oil or cannabis extract. They are designed to be swallowed, allowing the cannabinoids to be absorbed through the digestive system. This segment of the market represents 1.5% of the industry and is in steady decline.
Oil
Cannabis oil is a versatile product derived from the cannabis plant, containing various cannabinoids such as THC and CBD. It is used for both recreational and medicinal purposes, offering numerous potential benefits. This segment of the market represents 1% of the industry and is also declining at double digit rates.
Category Sales June YTD With % Change in Growth
Source: SpringBoard
2024 Outlook
The Canadian cannabis market is diverse and continually evolving, with product categories like infused pre-rolls increasing in popularity as consumers look for enhanced experiences and stronger effects. Expect more variety in the types of infusions, such as different concentrates and cannabinoid blends. Companies will focus on unique offerings to differentiate their products, potentially incorporating flavours and varying infusion techniques.
The future of cannabis infused pre-rolls in Canada looks promising, with significant growth potential driven by consumer demand, innovation, and regulatory support. As the market matures, expect to see continued diversification of products and increased emphasis on quality, safety, and efficacy.