Which point-of-sale software vendors have the largest market share in the cannabis industry? Cannabiz Media set out to answer that question with a recent study and is releasing the results in a new white paper: Point of Sale Software in the Cannabis Industry: Which Vendors are Leading the Pack? You can download the white paper here.

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Using a convenience sampling method, Cannabiz Media’s team of researchers gathered data from 1,460 active dispensaries and retailers nationwide through multiple phone calls and email follow-ups. The team estimates that it reached 50% of the licensed market as of October 26, 2018.

This research will continue on an ongoing basis as license holders change vendors, pending licenses become active, and new states come online. The data included in this study (and much more) is built into the enhanced data feature within the Cannabiz Media License Database.

Key Findings

Based on its primary research, Cannabiz Media discovered 44 unique point-of-sale software vendors in the cannabis industry, including proprietary software (for license holders that have a custom solution) and non-standard choices like Square and Intuit’s QuickBooks.

5 Vendors Account for 80% of the Market

Cannabiz Media discovered that just five point-of-sale software vendors account for 80% of the cannabis industry market share. Those five vendors are:

  1. BioTrack: 28%
  2. Green Bits: 26%
  3. Flowhub: 12%
  4. MJ Freeway: 8%
  5. Adilas: 5%

Taking this data a step further, the top 10 point-of-sale software vendors make up 93% of the market.

1 Vendor Dominates Medical-Only States

In states where only medical marijuana is allowed (not adult-use), one point-of-sale software vendor holds the majority market share. That company is BioTrack with a 53% market share – nearly twice that of the second-largest vendor in terms of market share in medical-only states, MJ Freeway, which has a 29% share.

2 Vendors Appear in the Top 5 for Medical-Only and Adult-Use States

Of all 44 point-of-sale software vendors and solutions cited by active and licensed cannabis retailers and dispensaries, only two appear in the top five for both medical-only and adult-use states: BioTrack and Green Bits.

One State Wonders are Common in California

Some of the popular point-of-sale software vendors in California appear nowhere else in Cannabiz Media’s research, which poses the question: Are they “one state wonders” with plans to migrate to other states? The 131 retailers in California that the Cannabiz Media team has already spoken to for the purposes of this study cited 18 point-of-sale software vendors. Two of the top five vendors (and four of the top 10 vendors) are one state wonders. In total, seven of the 18 vendors qualify as one state wonders.

Discover More Insights and Data in the Full White Paper

Download the full white paper to get all of the insights and data, including:

  • The complete list of 44 point-of-sale software vendors in use
  • Nationwide market share details
  • Medical-only states market share details
  • Adult-use states market share details
  • METRC states market share details
  • Proprietary solution details
  • Non-standard solutions details (including Intuit’s current market share with its Quickbooks solution)

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Of course, if you have any questions about the white paper or data, don’t hesitate to contact the Cannabiz Media team. Remember, the data included in this study (and much more) is built into the Cannabiz Media License Database, which you can see in action by scheduling a free demo!

Susan Gunelius, Lead Analyst for Cannabiz Media and author of Marijuana Licensing Reference Guide: 2017 Edition, is also President & CEO of KeySplash Creative, Inc., a marketing communications company offering, copywriting, content marketing, email marketing, social media marketing, and strategic branding services. She spent the first half of her 25-year career directing marketing programs for AT&T and HSBC. Today, her clients include household brands like Citigroup, Cox Communications, Intuit, and more as well as small businesses around the world. Susan has written 11 marketing-related books, including the highly popular Content Marketing for Dummies, 30-Minute Social Media Marketing, Kick-ass Copywriting in 10 Easy Steps, The Ultimate Guide to Email Marketing, and she is a popular marketing and branding keynote speaker. She is also a Certified Career Coach and Founder and Editor in Chief of Women on Business, an award-winning blog for business women. Susan holds a B.S. in marketing and an M.B.A in management and strategy.