Business

How Pre-Rolls Are Driving Growth And Profitability In Cannabis Retail

Published

on January 22, 2026

Why Pre-Rolls Are Now a Core Pillar of Cannabis Retail Strategy

By Harrison Bard, CEO & Co-Founder, Custom Cones USA and DaySavers

Pre-rolls are no longer a novelty in the cannabis industry—they are a cornerstone of retail success. Once treated as a secondary add-on, pre-rolls have evolved into one of the most dynamic, reliable, and profitable product categories in modern cannabis retail.

Popular, easy to merchandise, and highly accessible, pre-rolls serve as a primary entry point for new consumers and a consistent go-to for experienced ones. For dispensaries looking to increase basket size, drive repeat visits, and stabilize revenue, pre-rolls are now essential.

Pre-Rolls by the Numbers

According to 2025 Headset data, more than 310.7 million pre-rolls were sold through October, generating nearly $2.8 billion in revenue across 13 adult-use markets. That gives pre-rolls a 15.8 percent market share, ranking third behind flower and vapes.

In Canada, the category has gone even further—pre-rolls have surpassed flower to become the country’s top-selling cannabis product.

Driven by convenience, innovation, and accessibility, pre-rolls consistently increase average order value, encourage repeat traffic, and smooth out revenue fluctuations—making them a core pillar of modern retail strategy.

A Category Defined by Variety

At its most basic, a pre-roll is a ready-to-smoke joint: ground flower packed into a cone or tube with a filter or crutch. But beneath that simplicity lies one of the most diverse and innovative segments in cannabis.

Today’s pre-roll offerings include infused products, novelty filter tips, curated strain blends, and value-driven multi-packs. No cannabis product moves more units than pre-rolls. They’re ideal for everyday use, social settings, gifting, and experimentation—allowing consumers to grab something quick and affordable or splurge on premium infused options that combine flower and concentrates.

So which segments are driving the category?

Infused Pre-Rolls: The Top Revenue Engine

Infused pre-rolls dominate both sales growth and margin contribution. These premium joints combine flower with concentrates such as distillate, live resin, hash, and kief, delivering higher potency and enhanced flavor—two attributes consumers consistently prioritize.

So far in 2025, infused pre-rolls have generated more than $1.1 billion in sales, accounting for 48.5 percent of total pre-roll revenue, up 14 percent year over year.

They now represent 38 percent of units sold, a 28 percent YOY increase. The message is clear: any dispensary without a strong infused pre-roll assortment is leaving significant revenue on the table.

Single-Strain Hybrids: The Volume Leader

While infused pre-rolls lead in revenue, single-strain hybrid pre-rolls move the most units.

In 2025, this segment has generated approximately $987.4 million—or 36.3 percent of category revenue—while leading unit sales at 142.8 million pre-rolls, representing 46 percent of all units sold, up 14 percent year over year.

Hybrids remain the everyday staple for many consumers. Stocking a diverse hybrid selection is key to maintaining consistent, dependable sales volume.

Indica and Sativa: Maintaining Retail Balance

Beyond hybrids, single-strain indica and sativa pre-rolls remain important components of a balanced menu.

Indica pre-rolls generated $179.1 million in 2025
Sativa pre-rolls brought in $160.5 million, up 8.6 percent YOY

In unit sales:

Indicas sold roughly 26 million units (up 11.3 percent)
Sativas sold 18.8 million units (up 8.7 percent)

Each accounts for about 6 percent of total category revenue, serving loyal consumer segments that retailers shouldn’t overlook.

Mixed-Strain and CBD Pre-Rolls: Small but Strategic

Mixed-strain pre-rolls saw declines this year, with revenue down 15.9 percent to $51.9 million, and unit sales dropping 6.3 percent to 4.2 million.

Single-strain CBD pre-rolls, while still a small slice of the market, are growing. They represent about $4.6 million in revenue on 450,000 units, up 14.4 percent from 2024.

These niche products serve dedicated audiences. Retailers should stock them in limited, carefully monitored quantities using POS data to avoid overextension.

Blunts: Quietly Poised for Growth

At first glance, blunts appear minor—just 0.47 percent of pre-roll revenue and 0.3 percent of units sold. However, consumer surveys consistently rank blunts as the third-most-preferred consumption method.

The data becomes clearer when looking deeper. Many infused blunts are categorized under infused pre-rolls, masking their true impact. Among the top 200 products with “blunt” in the name, sales total $67 million across 3.5 million units.

Retailers should ensure they carry a variety of blunt options—especially infused blunts—to capture this underserved demand.

Packaging, Size, and Filter Trends

The most popular size by units sold is 1 gram, often sold as multi-packs of half-gram pre-rolls. In fact, the majority of top-selling products are 84mm half-gram multipacks.

Smaller formats—such as 0.3g “dogwalker” pre-rolls—are also gaining traction, appealing to trial-focused consumers. Multi-packs typically deliver higher margins while offering flexibility for both new and loyal customers.

Filter tips are another differentiator. Wood, glass, and ceramic tips improve airflow, cool smoke, and reduce resin intake—helping elevate pre-rolls into premium experiences that justify higher price points.

Selling Strategies That Drive Results

Pre-rolls are ideal impulse and upsell items and perform best when placed near checkout with clear pricing and strong visual merchandising.

Just like candy at a grocery register, pre-rolls thrive as add-ons.

Equally important is budtender education. Well-trained staff who understand strains, infusion types, and packaging formats are more effective at recommending pairings and introducing customers to new products—especially since budtender guidance remains one of the strongest drivers of purchase decisions.

Final Thoughts

Pre-rolls are now a key component of any smart cannabis retail strategy. They are popular, easy to merchandise, and serve as critical entry points for new brands and formats.

A well-balanced pre-roll program—offering a range of strains, sizes, and price points—can help dispensaries boost revenue, increase basket totals, and build lasting customer loyalty.

Paired with strong POS tracking and data-driven decision-making, pre-roll momentum can be transformed into sustainable, long-term growth.