With 2022 coming to a close, it’s clear that the past year has brought a huge shift in the cannabis industry. Price compression and regulatory struggles have led to sales stagnating and even declining in the most mature markets, and the biggest growth opportunities in 2023 are likely to be found in the Northeast and the Midwest. The Missouri cannabis market in particular has gained interest since voters recently approved Amendment 3, which legalized adult-use cannabis and paved the way for adult-use sales. With retail expected to launch as soon as February 2023, Missouri is on the minds of those keen to gain a foothold in this exciting Midwest cannabis powerhouse. Now that the sticky icky is finally legal in the Ozark State, we’d like to look at some of the brands to watch as Missouri heads towards adult-use sales, covering rising players across the edible, flower, preroll, vape and dabbable subcategories.
BDSA’s Missouri edibles brand to watch
Expectations were high when popular Oregon edibles brand, Grön, announced their expansion to the Missouri market, where they now offer their infused Pearls and Mega-Pearls gummies. Grön has seen their share of dollar edible sales grow rapidly in Missouri, with the brand coming in as the number-five ranked edible brand by monthly dollar sales for October 2022.
BDSA’s flower brand to watch
Sinse Cannabis has seen some of the strongest growth in 2022 of any Missouri brand in the flower sector. Per BDSA Retail Sales Tracking data, this St. Louis-based brand has seen their share of dollar flower sales grow from ~4.5 percent in January 2022 to ~13 percent in October 2022, making Sinse Cannabis the number-three brand in Missouri’s flower market by dollar sales in October 2022.
BDSA’s Missouri preroll brand to watch
Another homegrown cannabis brand, Mo’Dank prides themselves in providing weed “made by great people in Missouri, for great people in Missouri”– and the people sure seem to be taking notice. Mo’Dank has seen their share of dollar preroll sales grow from >0.5 percent in March 2022 to ~5 percent in October 2022, with the brand’s preroll sales now outpacing some of the earliest entrants to the MO preroll space.
BDSA’s Missouri vape brand to watch
With a presence in California, Arizona, Oklahoma, Massachusetts and Michigan, California-based ROVE Brands expanded their Midwestern footprint with an expansion to the Missouri market in June 2022. Since then, ROVE has seen strong growth in the vape sector, with the brand now making up ~5 percent of dollar vape sales in October 2022, making them a top-five vape brand.
BDSA’s dabbable brand to watch
With a product range of live resin, rosin and vape products, St. Louis-based Head Change has been a top performer in the dabbable concentrate space in 2022. With BDSA Retail Sales Tracking showing the brand with a ~11 percent share of dollar dabbable sales in October 2022, Head Change has risen to become the number three ranked dabbable brand by dollar sales.
With an estimated population of 4.6 million people over twenty-one in 2022, Missouri is far from the biggest market expected to launch in the coming year, but there are several dynamics that make it an appealing market for investors and businesses looking to expand. While Missouri borders Illinois, it is also surrounded by seven states that lack adult-use access, with a combined twenty-one-and-older population of over 19 million, making the state a prime destination for cross-border buyers who will undoubtedly give sales a strong boost for the early years of adult-use. With a strong foundation set by a soundly regulated medical program, and a host of highly sophisticated homegrown brands, Missouri is set up for a strong launch of legal sales. BDSA forecasts that Missouri will see ~$277 million in adult-use sales in 2023, pushing total legal sales for the year to ~$730 million. By 2026, Missouri is expected to crack into the “billion-dollar club”, with the market forecast to see ~$1.3 billion in legal sales that year.