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Cannabis Concentrates Brands With Strong Growth: Acquisition Targets Near Industry Consolidation – Verano Holdings (OTC:VRNOF)

Posted on by darion

As the industry consolidates, identifying emerging brands in key markets is key for acquisitions and partnerships. While wholesale prices have increased, retail margins have decreased, which has reduced profitability. Cannabis concentrates offer a way to enhance offerings and improve margins in this context. The question is: Which high-growth concentrate brands are leading the market with premium offerings?

The attractiveness of concentrates

In saturated markets, consumers are looking for distinctive, flavorful products that command higher prices due to their potency, sophisticated flavors, and premium packaging. According to BDSA data, cannabis concentrates have gained popularity and sales have increased significantly, making them a lucrative option for companies looking to increase profit margins.

Smaller, local brands with loyal customer bases in emerging markets such as the East Coast and Midwest are well-positioned to achieve strong sales and make attractive acquisition targets as the industry consolidates.

Regional events in key markets

Michigan has become a significant market for many brands, including Goodlyfe Farms, Galactic AND Society Ceach exceeding $5 million in sales. These brands are showing strong growth in concentrates alongside other product categories.

Massachusetts is another key state home to successful brands like LiveWell AND Happy Valleyboth showing strong sales trends. Additionally, Basic sauce ingredients achieved sales in excess of $1 million, operating in Massachusetts and other states.

Market Insight A snapshot of the top 4

  • According to Headset data, Ozone has demonstrated significant performance in Illinois across multiple cannabis categories. From April through June 2024, it consistently ranked second in the Concentrates category, improving from third place in March.

  • Rhythm experienced fluctuations across categories in different states. In Illinois, it ranked fourth in the Concentrates category from March through May 2024, but dropped out of the top 30 by June.

  • Good Chemical Schools has demonstrated consistent performance, achieving sales in excess of $2 million by June 2024. In Massachusetts, it climbed to number one in the Concentrates category in June, while the Flower and Pre-Roll categories remained stable in the top four and top two, respectively.

  • Goodlyfe Farms showed strong performance in Michigan, rising to third in the Pre-Rolls category through June 2024 after starting sixth in March. But its entry into the Concentrates category in May at No. 32 and a rise to 22nd by June points to potential growth but underscores the challenges in this market.

Also Read: American Cannabis Consumers Now Prefer High-Potency Premium Products, Resin, and Infused Rolls: Who’s Buying What?

New players

Several brands including Distribution 10, Mischief, LimitAND Traphouse Cannabis Co.are gaining popularity, with sales exceeding $1 million. These brands are mostly concentrated in Michigan, underscoring the solid market growth in that state.

Top 15 Cannabis Concentrate Brands by Sales and Location

  • Ozone – Illinois, Massachusetts, Maryland, Michigan, Ohio

  • Rhythm – Illinois, Massachusetts, Maryland, Nevada, New York, Ohio

  • Good Chemical Schools – Colorado, Massachusetts

  • (essence VRNOF – Illinois, Massachusetts, Maryland, Nevada, Ohio

  • Goodlyfe Farms -Michigan

  • Galactic (formerly Galactic Meds) -Massachusetts, Michigan, Missouri

  • LiveWell – Maryland, Michigan, New York

  • Society C -Michigan

  • Distribution 10 -Michigan

  • Happy Valley -Massachusetts

  • Basic sauce ingredients – Arizona, California, Michigan, Nevada, Ohio, Oregon

  • My medications – California, Michigan

  • Mischief -Michigan

  • Limit -Michigan

  • Traphouse Cannabis Co. -Michigan

Also read: Michigan Beats California in Legal Marijuana Sales: Why Is the Golden State’s Cannabis Industry Losing Its Luster?

These issues will be a hot topic at the upcoming Benzinga Cannabis Capital Conference in Chicago on October 8-9. Join us to learn more about what the wave of legalization means for the future of marijuana investing. Hear directly from executives, investors, advocates, and policymakers. Get your tickets now before prices rise by clicking this link.

Photo: Image generated by AI.