Member Blog: New Data Reveals Market Share Changes for Cannabis POS Software Providers

by Ed Keating, Co-founder and Chief Data Officer of Cannabiz Media

Point of sale software providers are a critical part of the cannabis economy, and as the industry grows, a shift is happening. 

In the first half of 2019, the dominant POS providers of 2018 held onto their positions as market leaders. Others merged or were acquired, and new providers launched. Even big brands like NCR, NetSuite, and SalesForce entered the market joining Quicken and Square in an attempt to gain a piece of what they hope will be a lucrative market.

Cannabiz Media conducted a research study to identify POS software providers and market shares in mid-2019 and compared the data to findings compiled in a similar year-end 2018 report. The full report is available for free download here, and the results may surprise you.

Key Findings for Mid-Year 2019:

• There are 68 unique POS software providers in the U.S. cannabis industry (up 58% from 43 in December 2018).
• BioTrack is the market share leader overall.
• BioTrack is the market share leader in states with medical-only cannabis programs.
• Green Bits is the market share leader in states with adult-use cannabis programs.
• Green Bits is the market share leader in METRC states.

Cannabis POS Market Share Shifts in the First Half of 2019

In mid-2019, the top five POS providers account for 68% of the overall cannabis market, and the top 10 account for 84% of the market.  Part of this change can be attributed to active California licenses expiring and revisions to the survey methodology. 

Compare those numbers to how things looked at year-end 2018 when the top 5 POS providers made up 80% of market share, and the top 10 were responsible for 93% of the market.

In addition, the number of POS vendors servicing cannabis businesses increased by 58% from 43 in December 2018 to 68 by July 2019. 

In other words, while the market is still highly concentrated, the market leaders have given up some market share, and new companies continue to enter the space. 

The same shifts are happening in medical-only and adult-use states. 

In mid-2019, 34 POS providers were active in medical-only states (up from 15 in December 2018), and 53 were active in adult-use states (up from 40 in December 2018). 

At year-end 2018, the top five POS vendors accounted for 94% of the market in medical-only states, but in July 2019, they only account for 70.4% of the market. 

In adult-use states, the top five vendors accounted for 78% of the market in December 2018 but only account for 71% of the market in mid-2019.

Top Cannabis POS Software Providers in Mid-2019

According to Cannabiz Media’s research, the top five cannabis POS software providers overall in mid-2019 are:

1. BioTrack
2. Green Bits
3. Flowhub
4. MJ Freeway
5. Indica Online

In medical-only states, the top POS software providers in mid-2019 are:

1. BioTrack
2. MJ Freeway
3. Indica Online
4. Flowhub
5. COVA

In adult-use states, the market share leaders in mid-2019 are:

1. Green Bits
2. BioTrack
3. Flowhub
4. Adilas
5. MMJ Menu

In METRC states, the top five POS software providers in mid-2019 are:

1. Green Bits
2. BioTrack
3. Flowhub
4. Adilas
5. MJ Freeway

Key Takeaways

While the POS market leaders have lost some market share in recent months, the biggest battle appears to be among the top two companies, which have approximately twice as much market share as the company ranked in third place in the overall market as well as in adult-use states and METRC states. In the meantime, the other 66 POS providers that service the cannabis industry are slowly chipping away at that share.

Get the Free Report with Detailed Data, Charts, and Commentary

Visit https://cannabiz.media/pos-report-2/ to download Cannabiz Media’s complete “Point of Sale Software in the Cannabis Industry: 2019 Mid-Year Report” for free to view all of the detailed market share data, the full list of POS vendors in the cannabis industry, 2018 vs. 2019 comparisons, and specific data about POS providers in the California and Oklahoma markets.

Ed Keating is a co-founder of Cannabiz Media and oversees our data research and government relations efforts. He has spent his whole career working with and advising information companies in the compliance space. Ed has overseen complex multijurisdictional product lines in the securities, corporate, UCC, safety, environmental and human resource markets and focuses on workflow products. Ed has spent the last twenty five years in the information industry.  During that time he has worked for both startup and established information companies where he has led marketing, product management and sales organizations.  These companies include Wolters Kluwer/Commerce Clearing House, CT Corporation, EDGAR Online and Business & Legal Reports. At Cannabiz Media, Ed enjoys the challenge of working with regulators across the country as he and his team gather corporate, financial, and license information to track the people, products and businesses in the cannabis economy. Ed graduated from Hamilton College and received his MBA from the Kellogg School at Northwestern University.  He has been active with the Software & Information Industry Association for his whole career and managed the Content Division for six years.  He’s was recently a Trustee at the Country School in Madison CT and a Little League Coach for seven years.