4 California Cannabis Market Trends You Need to Know for Sustainable Growth

As a cannabis operator, it’s easy to get caught up in the day to day tasks involved with keeping operations running smoothly. However, when those operations alone aren’t proving to be as profitable as you’d hope - it’s time to shift your focus to find out what you can do to scale growth for a sustainable future. 

That means taking the time out of your busy schedule to look at current consumer and industry trends across the US and in the California cannabis market, specifically. 

California has quickly become the standard for the industry and where these trends often emerge. Whether you’re licensed in the state already or looking to enter the market - knowing these trends and how to capitalize on them is first on the list of to-do’s when looking to expand. 

So, here we’ve compiled the top four latest California cannabis market trends every operator needs to know, plus two simple ways cannabis contract manufacturers can help. 

Let’s get started with the most recent trends to be aware of. 

Trend #1 - Dispensary House Brands

Retail storefronts have the advantage of an already built customer base and valuable insights from actual consumer purchases. To capitalize on this, dispensaries are now producing their own branded product lines, or ‘house brands’ that specifically meet the needs of their customers, helping to build loyalty and customer retention. 

For dispensaries that aren’t vertically integrated already, industry experts recommend white labeling or teaming up with cannabis contract manufacturers to do so seamlessly and cost-effectively. This route not only saves retailers up-front costs for facilities, equipment, expertise in production, and staff but helps bring the product to the market faster too.

Trend #2 - Pre-Rolls as the Future of Flower

Recently, the leader in cannabis data, Headset, released valuable data that highlights the product categories that consumers are now shifting towards. In this report, flower sales showed a decline, while the sales of beverages, capsules, edibles, pre-rolls, and vape pens all grew considerably from June 2020 - May 2022.

Pre-rolls, specifically, experienced profound growth in sales, increasing nearly 23% from 2020 - 21 and 22% from 2021 - 2022. Furthermore, when looking at online sales for pickup and delivery, online shopping carts containing only pre-rolls increased from 47% to 53% in a 12-month period.

california cannabis distribution

Trend #3 - Brand Growth in New Sectors

Another trend, reported by MJBizDaily, shows brands not only expanding their reach with multi-state operations but also growing in new product category sectors, too. Similar to retail dispensaries producing their own house brand products, California processors, cultivators, and manufacturers are steadily seeing the benefit of expanding their product offerings outside of their flagship goods to increase target markets and sales overall. 

Similarly, out of state and out of country cannabis brands are seeking to enter the Golden State as they see the value of the California cannabis market size, population, and sales. 

Trend #4 - Portable and Potent Products

According to industry experts, consumers are steadily shifting towards more portable and potent products, such as pre-roll packs, edibles, and vape carts, that allow them to more easily consume on the go. Even more, they’re seeking out more potent products, such as infused pre-rolls, that deliver the same nostalgia as a joint but with the potency of a concentrate, too.

private label cannabis

How to Capitalize with Cannabis Contract Manufacturers

Another trend that’s been creeping up for quite some time is cannabis contract manufacturers and white label cannabis products. By outsourcing the manufacturing of additional product lines, experts note that companies can gain the benefit of flexibility in volume and savings. 

But remember, not all cannabis white label California brands can be treated equally. As a company or individual, you should conduct thorough research into potential white label cannabis products or private label cannabis opportunities with an extensive vetting process. To help, key factors to consider when selecting a white label cannabis partner or cannabis contract manufacturer include - 

  • Product consistency 
  • Delivery and distribution 
  • Pricing and shared costs
  • Experience 
  • Communication and customer support 
  • Production schedule and timeline 
  • Facility accessibility and availability 
  • Unique value propositions versus competitors (i.e. perks like co-working space, or B2B distribution) 
  • Licensing types and requirements 
  • Experience with compliance (e.g. METRC, state audits, etc.)

One California cannabis license type that’s helping to facilitate fast and cost-effective entry into the cannabis edibles market is the Type-S or shared-use license. With lower licensing fees and the ability to use a facility that’s already specifically equipped for cannabis product manufacturing, you can see just why the Type-S license type is gaining popularity with budding cannabis entrepreneurs and brands struggling to turn a profit.

The Bottom Line - White Label Cannabis is on the Rise

At this point, there’s no question. To scale growth and remain competitive, California cannabis market cultivators, processors, retailers, and manufacturers alike must get serious about capitalizing on market forecasts and trends. 

Now that you know the current trends that are poised to take the industry by storm, you can internally strategize on which route is best for your operation, in positioning for future success. All in all, these trends show the value of partnering with cannabis contract manufacturers to produce white label cannabis goods and the benefits of co-manufacturing and shared-use facilities, too.  

Tap into the experience and resources of My Green Network to begin or expand California cannabis distribution and manufacturing. Since opening in March 2022, our Type-S shared-use facility has helped launch nearly a dozen private label brands, helping cannabis entrepreneurs and small businesses enter an industry that’s notoriously expensive and exclusive to join.

Learn more about our facility, membership types, and licensing support to begin capitalizing on these trends - before your competitors do. Visit our website or schedule a consultation with our team now!