The fourth annual Point-of-Sale Software in the Cannabis Industry report is now available for free download here. The 2021 report provides a comprehensive update on point-of-sale (POS) software market share across the cannabis industry using primary research conducted by Cannabiz Media’s research team.
For the 2021 POS report, Cannabiz Media’s researchers used a convenience sampling method to collect data from 3,132 of the 8,875 active dispensaries, retailers, and delivery license holders in the United States, which is estimated to represent 35% of the market. The research team made a total of 23,000 outbound phone calls during the late spring and summer of 2021 to survey these license holders.
The 2021 Point-of-Sale Software in the Cannabis Industry report provides key findings about vendors, market share, growth trends, switching behaviors, and more.
Key Findings for 2021
In 2021, the point-of-sale software category in the cannabis industry grew from 68 to 78 vendors with 11 new vendors entering the market. This year, the top five vendors account for 61% of the market, and the top 10 vendors accounted for 79% of the market. Two companies bought other providers in 2021, which increased both of their market shares significantly (Dutchie acquired Green Bits and Leaflogix and Akerna purchased Viridian and 365 Cannabis).
Top 5 Point-of-Sale Software Vendors
The top five POS software vendors in 2021 dominate 61% of the market, which is down from 66% in 2020 and 68% in 2019.
The top four vendors by market share in 2021 are the same as 2020, but the vendor with the fifth largest market share changed from Indica Online (dropped to #6 in 2021) to Leaflogix (up from #6 in 2020). Here is the top five breakdown:
- Green Bits: 19% (down from 21% in 2020)
- BioTrack: 16% (down from 20% in 2020)
- Flowhub: 13% (up from 11% in 2020)
- MJ Freeway: 7% (down from 9% in 2020)
- Leaflogix: 6% (up from 3% in 2020)
Industry Growth Trends and Consolidation
Since Cannabiz Media’s first Point-of-Sale Software in the Cannabis Industry report in 2018, several vendors have experienced significant growth. For example, market share for Green Bits has increased 56% since 2018, and BioTrack is up 24% while Flowhub is up 97%. However, growth trends get even more interesting as companies start consolidating.
Dutchie’s acquisition of Green Bits and Leaflogix consolidates two brands that are ranked number one and number five for POS software market share based on Cannabiz Media’s survey. This consolidation gives Dutchie a huge market share. Additionally, Akerna’s acquisition of Viridian and 365 Cannabis complements their legacy MJ Freeway offering.
POS Vendor Switching in 2021
As reported in previous years, cannabis license holders continue to switch POS vendors. In the 2021 Point-of-Sale in the Cannabis Industry report, the Cannabiz Media research team reports 298 vendor switches, which is up from 120 switches last year. Flowhub, Leaflogix, and Growflow added more customers than they lost. On the other hand, BioTrack lost the most accounts but did pick up some new ones as a small offset.
States with the most brand switching in 2021 include Colorado (83), Oklahoma (64), and Oregon (49). Given the consolidation trends among POS software vendors in the cannabis industry, switching behavior is likely to continue, and the number of providers is likely to decline in the future.
CRM Software in 2021
The Cannabiz Media research team also surveyed dispensaries about the customer relationship management (CRM) tools they use. The most frequent response to which CRM they used was “none” (64%). Among the 1,900 respondents who did share the CRM they use, Dutchie (9.7%) and SpringBig (7.6%) were mentioned most frequently.
Looking at which CRM tools paired with point-of-sale software, Cannabiz Media’s researchers found that 49% of the reported Blackbird CRM installations used Green Bits as their POS vendor. Dutchie paired with Green Bits in 29% of reported installations and Leaflogix in 15% of reported installations. SpringBig paired with many vendors.
Learn More in the Full White Paper
Download the full Point-of-Sale Software in the Cannabis Industry: 2021 Report to get all of the data and insights, including:
- The complete list of all 78 point-of-sale vendors in use nationwide by active dispensary, retailer, and delivery license holders
- Overall POS software market share details
- Key POS software market data for Oklahoma, California, and Montana
- POS software data for medical states versus states with adult-use programs
- POS software switching behavior data by vendor and state
- CRM brands in use by active cannabis dispensary license holders
- CRM and POS software pairing data
- Inactive license data by state and POS software vendor
- Data charts and tables
If you have any questions about the 2021 report, point of sale software vendor data, or cannabis license holder data, contact the Cannabiz Media Team.
And don’t forget that all of the data in this report (and much more) is available to subscribers in the Cannabiz Media License Database. Schedule a free demo to see how you can use it for sales and marketing so you can grow your business and reach your goals.