SEATTLE, April 15, 2026 (GLOBE NEWSWIRE) -- The cannabis industry has a new center of gravity. In 2025, pre-rolls became the most-sold product category in the United States by unit volume, closing the chapter on flower’s long-standing dominance and opening a new era shaped by speed, scale and brand execution. This shift is detailed in the newly released State of the Pre-Roll Market 2026 report from Custom Cones USA, the leading and most trusted provider of pre-rolled cones, pre-roll packaging and pre-roll machines worldwide.
Drawing on 2025 sales data from cannabis analytics firm Headset, along with survey insights from more than 125 of the top pre-roll operators across North America, the report shows the category generated $3.6 billion in revenue and sold more than 383 million units, achieving a 15.9% market share and the strongest growth of any major cannabis category.
Pre-roll revenue grew 9.8% year-over-year, while unit sales surged 18.6%, far outpacing the broader cannabis market, which expanded just 1.5% over the same period.
“Pre-rolls are no longer an afterthought,” said Harrison Bard, CEO of Custom Cones USA. “What started as a trim byproduct, pre-rolls have matured into a highly competitive, innovation-driven category where brands are winning through quality, scale, and smart branding.”
The report highlights a category that has more than doubled in revenue since 2021 and posted five consecutive years of growth, even as the broader market shows signs of slowing.
Key Market Trends
Infused products drive revenue
Infused pre-rolls generated $1.68 billion in revenue, accounting for 47% of the category, and delivered the fastest growth across both units and sales.
Multi-pack formats dominate the market
Multi-packs now represent 48.5% of all SKUs, with 90 of the top 100 products sold in bundled formats. The leading configuration, a 2.5g five-pack, alone generated more than $600 million in revenue. However, the 1-gram single pre-roll still remains the top individual product format, raking in $1.44 billion in 2025.
Wide pricing spectrum supports multiple winning strategies
The pre-roll category spans products from roughly $2 to more than $38, allowing brands to succeed through both premium and high-volume approaches.
Margins remain strong across the category
Pre-rolls deliver an average margin of 46.6%, with vertically integrated house brands outperforming at 55% margins.
Millennials lead consumption
Millennials account for 43.9% of total pre-roll revenue, reinforcing the category’s alignment with core cannabis consumers.
Market Leaders and Strategic Divide
The report outlines a clear split in how brands are winning market share, with two distinct models shaping the competitive landscape.
California-based Jeeter leads the category in total revenue, generating more than $253 million in pre-roll sales through a premium-focused product strategy built on infused products and multi-pack formats. Its portfolio leans into potency, flavor and brand recognition, with an average price point of roughly $23 per unit.
Michigan-based Dragonfly Cannabis, by contrast, leads the industry in unit sales, moving 22.6 million pre-rolls in 2025 while generating just over $30 million in revenue. Its model centers on accessibility and scale, anchored by low-priced, single-gram products with an average price near $1.34.
Between these two ends of the spectrum sits a broad range of brands balancing price and quality, including companies like STIIIZY, Dogwalkers, and Cali-Blaze, each carving out share through a mix of brand equity, product innovation and targeted distribution strategies.
This range reflects a category that supports multiple paths to success. Premium brands are capturing higher margins through innovation, infused formats and curated multi-pack experiences. Value-driven operators are building scale through price accessibility, brand loyalty and repeat purchase velocity.
The data also points to the growing role of vertically integrated “house brands,” which are leveraging internal supply chains to lower costs and increase margins. Though still a small percentage of overall sales, these products now account for more than $150 million in revenue, with average margins reaching 55%, well above the category average.
At the same time, the competitive landscape continues to evolve. While more than 3,200 brands are active in the pre-roll space, net growth in new entrants has slowed, signaling a maturing market where operational efficiency, brand strength and product differentiation are becoming increasingly important.
Emerging Opportunities
While the pre-roll category continues to expand, the report highlights several areas where innovation remains early and where brands have an opportunity to gain meaningful competitive advantage.
Premium filter tips represent a largely untapped segment
Products featuring glass, wood or ceramic filter tips currently account for just 0.03% of total pre-roll sales, despite strong signals of consumer interest. Survey data shows more than one in five consumers purchase premium-tip products at least once per week, suggesting a gap between demand and availability.
This creates an opening for brands to elevate the pre-roll experience through materials, design and craftsmanship, particularly as consumers increasingly treat pre-rolls as a finished product rather than a disposable format.
Pre-rolled blunts show significant underreported demand
Official data places the blunt segment at roughly $16.3 million in sales, but a deeper analysis of product-level data shows that items labeled as blunts generated closer to $148 million in revenue and sold more than 8.5 million units.
This discrepancy is largely due to how infused blunts are categorized in the “infused” segment, masking the true size of the opportunity. Consumer preference data further reinforces this potential, with blunts ranking among the top preferred consumption methods nationwide.
Branding and packaging remain a key differentiator
Nearly 60% of producers still use unbranded cones, while leading brands invest heavily in fully customized products and packaging systems.
As competition intensifies, branding has emerged as a top-three driver of purchasing decisions behind potency and price. This shift reflects a broader move toward consumer packaged goods dynamics, where visual identity, consistency and shelf presence play a critical role in driving repeat purchases.
Operational efficiency is reshaping production models
Advancements in automation and pre-roll machinery are allowing companies to scale production with lean teams. More than 70% of operators report using just one to two employees for pre-roll manufacturing, pointing to increased efficiency and lower labor costs.
This shift is enabling smaller operators to compete more effectively while also supporting the rapid expansion of product lines, including infused offerings and multi-pack formats.
Innovation continues to center on format and experience
The category’s next phase of growth is expected to be driven by product enhancements that go beyond potency alone. This includes advancements in infusion techniques, new material formats and packaging that emphasizes convenience, experimentation, portability and freshness.
Together, these opportunity areas point to a category that remains early in its evolution, with significant room for brands to differentiate through product design, positioning and consumer experience.
Custom Cones USA projects continued expansion for the category, with 2026 revenue expected to reach between $3.8 billion and $4 billion, and long-term growth pushing the market past $5.2 billion by 2030.
The full report, including detailed market analysis, brand assessments and forward-looking insights, is available at: https://customconesusa.com/pre-roll-expert-blog/pre-roll-reports/
About Custom Cones USA
Founded in 2017 by Harrison Bard and Fredrik Rading, Custom Cones USA is a leading pre-roll resource in the cannabis industry. The team has a wealth of knowledge about all aspects of pre-roll manufacturing, packaging, sales and branding, as well as what it takes to succeed in the highly competitive pre-roll sector. From custom-branded pre-rolled cones and wholesale bulk cones, to packaging, pre-roll machines and full product customization, they offer expertise and solutions to companies big and small in all sectors of the pre-roll space. Custom Cones USA has brought their top quality and always-tested pre-rolled cones and tubes to the consumer through its brand DaySavers, which is the most compliant and transparent smoking accessories brand on the market, by holding itself to the same compliance standards as regulated cannabis companies.
Contact:
Jonathan Rose
Grasslands: A Journalism-Minded Agency
jonathan@mygrasslands.com
