By Helen Lee
The Concentrates category in California saw slowed growth in year-end sales from 2015 to 2016 (18% vs. 79% from 2014 to 2015). Based on Brightfield Group’s projection, 2017 year-end Concentrates sales in California should reflect a similar level of growth. However, with the passage of Proposition 64 by California voters last November, the overall Concentrates market should experience a hefty increase in year-end sales starting in 2018. This is when state officials expect to begin granting licenses to retail outlets to sell marijuana products for recreational use.
At year-end 2018, sales from recreational use are projected to account for over half of total Concentrate sales in California and continue to increase in proportion to overall category sales.
Unlike the Edibles market in California, the top 10 Concentrate brands in California continue to increase their share of the market, accounting for a third of the total sales in this category compared to a quarter in July 2016.
The increase in the Concentrates market share for the top brands is being led by Moxie Seeds & Extracts, which has seen a tripling of its market share in less than a year (April 2016 to February 2017). Moxie Seeds & Extracts has separated itself from the other top brands, including Bhang which now has a third of the California Concentrates market share it once had a year ago.
Moxie’s top position may be due, in part, to the large variety of products it offers Concentrates users in California. It offers over 160 products, including shatters, waxes and vaporizer cartridges (source: Cannabis Reports). Concentrates also make up a large proportion of Moxie’s product line, while more than half of Bhang’s product line is categorized as Edibles, mostly Chocolates.
As California welcomes recreational use of marijuana, look for some companies competing in the California Concentrates market to possibly shift their focus and resources to other categories where their brands have a stronger presence. In addition, to be competitive in this expanding market, companies will need to clearly communicate their value proposition which will set them apart in the crowded Concentrates market.