BDSA’s top insights from the first year of adult-use sales in Arizona

Arizona made headlines with its swift launch of adult-use sales on January 22, 2021, kicking off legal sales less than 90 days after the passage of legalization. With 2021 now wrapped up, it’s clear that this rapid launch did not hamper growth of the state’s already mature market, as BDSA Retail Sales Tracking data show total sales in the Arizona market reached just shy of $1.3 billion in 2021, ~25% higher than the sales total from 2020. The Arizona market has seen sizable shifts since the move to adult-use sales, but BDSA is here to help you stay on top of the trends in this dynamic market.

Consumer penetration has surged since the start of adult-use sales.

BDSA’s Consumer Insights data shows that Arizona saw some of the fastest growth in cannabis Consumer penetration of any market in 2021, undoubtedly with the help of expanded adult-use access. The share of those reporting past six-month consumption spiked ~10% over 2021 and broke the 50% threshold in fall of 2021. While few states have been able to crack the 50% claimed consumer mark, Arizona is notable in how fast its consumer share has grown. By contrast, Colorado, the first state to launch adult-use sales, did not reach 50% claimed consumers until fall of 2021, roughly eight years after the start of adult-use sales. 

Big MSO brands saw success with their new Arizona ventures, but homegrown brands are here to stay

As a highly developed market with a limited licensing scheme, Arizona was a prime target for MSO brands looking to expand to new states. Subsidiary brands of Verano, GTI, and Cresco Labs have seen strong sales since entering Arizona, but local brands with a strong presence have still held onto their share of the market. Timeless Vapes, an Arizona-based giant in the vape space, remained the number one ranked vape brand by dollar sales for 2021 according to BDSA Retail Sales Tracking.

The strongest growth was seen in the pre-rolled category, with 2021 pre-rolled sales more than doubling those of 2020

The pre-rolled category saw the largest gains of any product form factor, with BDSA Retail Sales Tracking showing pre-rolled sales more than doubling to total ~$100 million for the year. BDSA Consumer Insights data also showed that the share of consumers claiming to prefer pre-rolled products more than doubled between the fall of 2020 and the fall of 2021.

Ingestible products saw a big boost, but inhalable products are still king in the Arizona market

Edible sales saw sizable growth, even surpassing the sales growth in the Arizona market overall to total ~$130 million for 2021, per BDSA Retail Sales Tracking. While the flower category did see slower growth than edibles, flower still held a ~40% share of dollar sales for Q4 2021, making it the largest product category by a wide margin.