Pre-Rolls Sales Continue to Grow in Colorado, Despite Overall Drop in Revenues

Like in many mature markets, Colorado’s cannabis sales numbers have plateaued and even dropped over the past few years, with 2024 sales expected to mark a 7-year low for the Centennial State’s cannabis industry.

It’s the third year in a row that Colorado’s industry has seen a revenue decline, after hitting record highs during the pandemic. Much of the decline can be attributed to falling prices, as flower production outpaces consumer demand.

But looking deeper at the numbers, not all categories have shown declines. In fact, Colorado’s pre-roll category actually saw an increase in revenue, unit sales and market share in 2024, as more and more customers turn to the convenience, ease and constant innovation that pre-rolls provide.

Colorado Cannabis Revenue by the Numbers

Though numbers for the full year have not yet been released, Colorado cannabis revenue totaled $1,283,555,595 through November. Additionally, the state’s Department of Revenue noted that it collected $19,141,932 in cannabis tax and fee revenue for December 2024.

In November, the state collected $20,147,794 worth of marijuana tax revenue on $109,257,837 in sales. Because December’s tax revenue was less than November’s, we can assume that revenues will also be lower, since the tax rate did not change.

In 2023, Colorado generated $1,529,324,553 in cannabis sales. Expected sales in 2024 should be around $1.3 billion.

Colorado Pre-Roll Sales Continue to Grow

But it’s not all bad news. Pre-Rolls sales continue to grow, providing producers with an easy way to help keep their ledgers in the black, even as pre-roll prices continue to decline.

According to point-of-sales data from cannabis analytics firm Headset.io, Pre-Rolls generated $123,974,535 in revenue in 2024, up from $121,616,855 the year before, a nearly 2% increase in the category.

The data also shows that Colorado consumers bought 15.7 million pre-roll products in 2024, up from 15 million in 2023. Because of the growth, the category – which ranks fourth in the state behind Flower, Vape Pens and Edibles – saw its market share increase from 9.1% in 2023 to 10% in 2024.

Zooming out farther, this marks the fifth consecutive year that pre-rolls have increased their market share in Colorado, jumping from just 6.1% in 2020.

The average item price for a pre-rolls also fell through the year, dropping to $7.87 in December from $8.14 in January. In addition, the average equalized price per gram of a Pre-Roll product for consumers fell to $6.58 in 2024 (down from $7.20 in 2023), even as producers saw their average equalized wholesale price increased from $2.84 to $2.90 per gram.

Colorado Pre-Roll Segment Trends

So what pre-rolls are Coloradans buying?

Once again, the most popular Pre-Roll segment in Colorado in 2024 was the Hybrid – Single Strain, growing from $59.7 million in sales in 2023 to $60.8 million in 2024.

However, the Pre-Roll segment that showed the most growth was the Connoisseur/Infused segment, in which flower is combined with a concentrate to create a product higher in potency than a traditional flower-only pre-roll. In 2024, infused pre-rolls accounted for $40 million in sales, up from $31.2 million in 2023, a 17.2% increase.

Meanwhile, sales revenue dropped for the Sativa – Single Strain and Indica – Single Strain segments, third and fourth in sales, respectively, while Mixed Strain pre-roll sales rose slightly, earning the fifth spot on the charts.

Infused pre-rolls were also the No. 1 and No. 2 top-selling pre-roll products in the state. In total, 4 of the top 10 pre roll products by revenue were infused.

Final Thoughts on 2024 Colorado Pre-Roll Sales

Once again we see that even as markets mature and demand reaches saturation, Pre-Roll revenues and sales continue to grow, defying the rest of the market around them. The ready-to-go nature and ease-of-use pre-rolls, as well as the blank canvas for innovation and sample-size nature of the product, continue to draw new customers.

This makes pre-rolls an absolute must-have addition to any cannabis brand’s product line

Contact the Pre-Roll Experts today to see how we can help you develop or expand a pre-roll line that will keep your business growing, no matter what market you are in!