Arizona Has Sold More Marijuana in 2021 Than Colorado

Arizona started adult-use cannabis sales in January 2021, and medical sales have been legal in the state since 2012. A new report by Headset provides an overview of the Arizona cannabis market, exploring various sales trends including month over month growth, marijuana category trends, and some pricing insights.

Arizona Cannabis Sales

Arizona made a total of $1.6B in cannabis sales (medical and adult-use) between January and September 2021, which is more sales than Colorado.

Arizona Cannabis Categories Sales

Concentrates hold a significant market share in Arizona compared to other US markets at 10%. While Flower is still the dominant category, market share to this category has been decreasing, and market share to Vapor Pens and Pre-Rolls have increased. When we look at pricing trends, we notice a sharp decrease in average item pricing (AIP) of Flower from January to September (-21%), indicating an over supply of inventory in the category or potentially an adjustment to pricing to match consumer expectation. This runs in contrast to a 7% increase in AIP for Vapor Pen items over the last nine months.

Key Takeaways

• From January to September 2021, Arizona made a total of $1.6B in cannabis sales (medical and adult-use combined).
• Sales in Arizona continue to show strong YoY growth, growing 110% YoY in September.
• While Flower is the largest category in Arizona, market share has decreased from 52.6% in January to 44.9% in September. Market share to Vapor Pens has increased from 21% to 25% from January to September, and Pre-Rolls has increased from 5% to 9% in the same period.
• Concentrates have more market share in Arizona at 10% than in Illinois (6.8%) and Michigan (7.1%). This could be due to the strong medical market still remaining in Arizona, since Concentrates are known to have medical applications.
• There was a sharp decrease in average item pricing (AIP) of Flower from January to September (-21%), indicating an over supply of inventory in the category or potentially an adjustment to pricing to match consumer expectation. This runs in contrast to the 7% increase in AIP for Vapor Pen items over the last nine months.

Photos: Gage Skidmore/Flickr CC2.0 Modified; Headset.io