CANNABIS BLOG – Cannabis/Marijuana industry news

California’s marijuana market is poised for huge growth after a $500 million drop in legal sales in 2018, according to a wide-ranging report released Thursday.

Key takeaways from the report released by Boulder-based BDS Analytics include:

  • Legal marijuana sales slid to $2.5 billion in 2018 from roughly $3 billion in 2017 amid the transition to a fully regulated legal system and widespread retail contraction.
  • Sales will hit $3.1 billion in 2019 and $7.2 billion in 2024, which will be “40% larger than Canada and 253% larger than the next-largest state (cannabis market), Colorado.”
  • If such growth is realized by 2024, sales could represent as much as one in four of all dollars spent in the U.S. on legal cannabis.
  • There have been “billions (of dollars) in merger and acquisition activity between October 2018 and June 2019.”
  • The central drag on business and sales growth in California has been the “77% tax and regulatory load imposed by the state on the price of legal products.”
  • Lower-priced generic cannabis products are slowly being replaced by “branded product with better pricing power.”
  • Vaporizer cartridge sales are booming, jumping to $75.6 million in May 2019 from $26.8 million in January 2018.
  • Wholesale flower prices, by contrast, have not fared well since January 2018, mostly because of competition from illicit businesses and the inability of customers to distinguish legal flower from illegal.

Categories: California Medical Cannabis Business & Marijuana Legal News, Cannabis Industry & Marijuana Business Briefs, Recreational Marijuana News, United States Cannabis Industry & Marijuana Business News

Original Source


Please enter your comment!
Please enter your name here