Croptober 2019: 4 Reasons Why It Matters
October may be winding down, but Croptober is in full swing for the cannabis industry.
Croptober, or the annual cannabis harvest season, is when days grow shorter and outdoor cannabis operations begin to cut, dry, cure, and trim their crops. However, while there’s a lot of info about the meaning behind #Croptober, there is little discussion about the actual impact on the industry.
Is Croptober real?
The short answer is yes. Thanks to marketplace data spanning from January 2017 to present day, we know that Croptober isn’t just real – it really matters to cannabis businesses. Here’s why:
1. More flower products are purchased
Due to the growth of LeafLink and the overall cannabis industry, the number of flower SKUs on the marketplace increases by an average of 9% MoM. In October, that rate jumps to 12.63%, meaning that more flower products are purchased during Croptober than during the rest of the year.
2. More dispensaries are buying flower
During October, the growth rate of retailers purchasing flower products on LeafLink jumps by more than 3% to 11.45% MoM.
3. More brands are selling flower
The average number of brands selling flower on LeafLink increases by 21.92% in October – compared to an annual average of 8.46% MoM, that’s more than 10 percentage points higher than any other time of year.
4. Flower prices drop
In October, the average price of flower drops by 12.31%. During the rest of the year, the price of flower is stable, changing by less than 1% MoM!
Why does this matter?
The effects of Croptober are especially noticeable in states that rely on outdoor grows for their flower supply. While the amount of flower being bought and sold is at an all-time high during Croptober, the significant decrease in wholesale pricing offsets the impact when it comes to brand revenue. In other words, though LeafLink flower sales increase by 12.63% during October, the monetary value of those orders is only 1% greater.
Croptober is a time for great bounty when it comes to the availability of fresh wholesale flower, but this surplus causes prices to fall, and brands and farmers must sell more in order to recoup the same revenue.
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