dispensaries anticipate the surge in demand by stocking up in March. This trend has resulted in record-breaking March purchases for the past three years, setting a higher baseline for the year.
In 2021, wholesale sales jumped by 42% to $345 million in March, compared to $243 million the previous year. This pattern continued in 2022, with a 33% increase to $411 million. Despite a slight dip in December 2022, sales rebounded in March 2023, demonstrating the industry's resilience and growth trajectory.
The week of 4/20 marks the peak volume period, with customer demand driving a surge in unit sales. Retailers typically double their weekly averages, fueled by aggressive promotions and the cultural significance of the "flower holiday." This period also sees more favorable wholesale prices, as brands and platforms offer deals to encourage stock-up.
The 4/20 holiday has traditionally witnessed a significant increase in demand for packaged flower products, with sales rising by over 50%. Other categories also experience substantial gains. Retailers adjust their strategies accordingly, expanding shelf space for high-demand items to meet the surge in consumer interest and spending.
Emerging markets, particularly those with newly legalized cannabis programs, are showing remarkable growth rates that surpass more established markets. With the addition of states like New York and New Jersey to the adult-use cannabis fold, expectations for sales growth are high, driven by an expanding retail landscape and robust product offerings.
Promotional strategies play a crucial role, with over 5,100 retailers leveraging LeafLink's discounted products to meet consumer expectations for holiday deals. Brands that offer seasonal discounts see significant upticks in sales, highlighting the importance of strategic pricing and promotions in driving consumer engagement and sales growth.