Why Pre-Rolls Are Cannabis' Most Profitable Format, From California To Canada

There's weed and then there are pre-rolls.

And in 2025, the pre-roll isn't some stoner afterthought; it's the front-runner. In California, it's a cultural statement. In Canada, it's a quietly dominant force. Same format, different vibe. One market moves fast and loud; the other, slow and surgical. But both are being reshaped by the same force: the rise of the ready-made joint.

California: Where Pre-Rolls Come With Swagger

Let's start with the loudest room in the house.

Between December 2024 and February 2025, Californians bought $178.1 million worth of pre-rolls—16.1% of all cannabis sales in the state, per RollPros and BDSA. And most of those joints? They came supercharged. Infused products now make up 66.3% of all pre-roll sales.

The king of this hill? Jeeter. $26.7 million in sales this quarter. 15% of the market. Right behind them: STIIIZY's "40s" series of 0.5g five-packs, which alone account for 22% of California's entire pre-roll market.

This isn't a niche anymore—it's the standard.

And it's not just about grams and dollars. In this Forbes cover story, Will Yakowicz dives into what makes STIIIZY tick. CEO James Kim says it plainly: "I just know the consumer. That's the missing piece from the corporate guys—they don’t know the consumer." That might explain how his company, born in the gray market haze of 2017, now pulls in over $800 million annually and sits at the top of a cannabis empire with nearly 50 branded stores.

Also read: How One European Company Is Flooding America With Cannabis Seeds

It's not all clean and polished. There have been rumors, lawsuits, scrutiny. But that rough edge? For many in the legacy market, it adds credibility. STIIIZY didn't come from Whole Foods—it came from DTLA. And the market rewards that.

Canada: Slower, Calmer, Just As Deep

Up north, pre-rolls are a quieter success story. In some provinces, they account for up to 40% of legal sales. Nationally? 32%, according to the latest from Zuanic & Associates, citing Hifyre data.

Here, too, infused is rising—but at a more measured pace. After years of double-digit growth, the segment has plateaued at around 34% of pre-roll sales. That's still huge.

Top players? Decibel (OTC:DBCCF) leads with 26% of the infused joint market, but it's losing steam. Rising fast are BZAM (with Jeeter), Canopy Growth (NASDAQ:CGC) —via Claybourne— and OGI (NASDAQ:OGI)/Motif. Unlike California, pricing in Canada has stayed mostly stable. In fact, most brands that gained share raised prices year over year. A flex if there ever was one.

Where Canada lags? Format. Multipacks are still catching on. In California, they're the gold standard. In Canada, they're just starting to matter—and that's a gap ripe for disruption.

So What's The Play?

Same product, two different speeds.

California moves like a streetwear drop. Fast, brand-driven, fueled by flavor and hype. Canada leans clinical—steady, data-minded, focused on consistency and structure.

But consumers in both markets are pointing the way. Potency matters. Convenience matters. Innovation matters. And pre-rolls are no longer the bonus item; they're the main event.

Analyst Pablo Zuanic frames it like this: "Pre-rolls continue to outgrow the Canadian rec market and over-index versus the U.S." And in California? The numbers speak for themselves.

Jeeter. STIIIZY. Claybourne. Boxhot. These brands aren't just selling cannabis. They're selling identity, repeatability and a new kind of ritual.

The Bigger Picture

For investors and operators, this isn't just fluff – it's strategy. Infused pre-rolls are one of the few high-margin formats that still enjoy consistent consumer demand. The California model is spreading, one licensing deal at a time. Canadian producers have proof that pricing power still exists—if the product delivers.

And if you're still treating pre-rolls like an add-on? You're missing the moment.

Photo: Shutterstock