Analyzing Cart Size Dynamics in Wholesale Cannabis

Analyzing Cart Size Dynamics in Wholesale Cannabis

<![CDATA[Cart size, otherwise known as average order value (AOV), for wholesale cannabis transactions varies significantly across markets and over time due to specific market conditions, regulations, and product popularity. To gain additional perspective on consumer trends, we analyzed AOV alongside product category market share and pricing to determine if the contents of a cart and/or price shifts impact cart size. Markets analyzed include California, Oregon, Colorado, Michigan, Nevada, Washington, Arizona, Oklahoma, and Alaska. To start, let’s look at the current state of AOV within LeafLink data and then identify any trends that exist across these markets.Average Order Value in 2022Between Jan. 1 and April 4 of this year, overall AOV in LeafLink was $3,750 across the nine markets—less than in 2021 ($4,107) and 2020 ($4,000). Combining this data with insights on order volume and frequency provides additional context to tell the full story.Even while average order value decreased, the total number of orders increased. Total orders per month across these nine markets grew by 35.7% from 2020 to 2021 and 15.6% in 2022 due to a combination of additional buyers using LeafLink and increased purchase frequency. When analyzing market-level data, there are clear distinctions between buyer behavior and a lot of variance across these markets.2022 AOV and Most Popular Categories By Market Market AOV  #1 Category #2 Category #3 Category MI $7,596 Flower Cartridges Concentrates NV $7,007 Cartridges Flower Edibles & Ingestibles AZ $6,154 Cartridges Edibles & Ingestibles Flower CA $3,544 Flower Pre-Rolls Cartridges AK $3,081 Flower Cartridges Edibles & Ingestibles WA $1,987 Flower Edibles & Ingestibles Concentrates CO $1,834 Cartridges Concentrates Edibles & Ingestibles OR $1,531 Flower Cartridges Edibles & Ingestibles OK $1,014 Edibles & Ingestibles Cartridges Flower Categories are ranked by their percentage of transaction volume in LeafLink. MI, NV, and AZ see the largest average order values, while…

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Source : Analyzing Cart Size Dynamics in Wholesale Cannabis

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