Cannabis Competition Heating Up in Cali

By
HeadQuest
By 2024, cannabis sales growth in the Golden State will account for nearly a quarter of all sales growth in the United States, according to a report, “From Dispensaries to Superstores: Opportunities in U.S. Cannabis Retail.” “While that market has faced initial difficulties as the industry and regulators dealt with the headaches of a new, untested regulatory scheme, rigorous new testing requirements, heavy compliance and tax burden and some slow-moving licensing jurisdictions, retailers in the state still managed to generate more than $2.5 billion in sales,” according to the report. In the next five years, that amount could increase by $4.7 billion, the report forecasts, accounting for nearly a quarter of the predicted $20 billion in additional sales nationwide. While California will continue to be a lucrative market for cannabis retailers in the near term, it will also be a competitive one. The report found that California has the lowest ratio of retail licenses to potential cannabis consumers, with just one retailer for every 34,256 adults 21 and older.

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