THE MARKET

Better understand the cannabis consumer to anticipate their needs.

  • The market comprises consumers who legally consume medical marijuana (MM) either for medical use as they have a qualifying medical condition or for adult/recreational use.
  • The businesses supplying this market comprise; producers, processors, dispensaries and retail stores, as well as ancillary services (cultivation, testing, training, insurance, security‚Ķ)
  • The US national legal marijuana market has an estimated value in 2013 of $1.4bn.*
  • This is projected to increase by 64% in 2014 to $2.3bn.
  • The 5 year valuation rises to $10.2bn.
  • The illicit market is estimated at $18bn+
THE TRENDS

What does the future hold for cannabis?

  • Alternative ingestion methods: vaporisation, edibles, tablets, tinctures, topical treatments
  • Muti-state expansion: post federal legalisation it is expected that national brands will emerge.
  • Licensing: businesses may not own a mm business in another state but may earn income from IP fees.
  • Extraction products: concentrates made through extracting marijuana oil are popular and profitable. Increase in investment in oil product companies and ancillary equipment producers.
  • Rising trim prices: due to growth in alternative ingestion formats, possible undersupply of oil.
  • Larger scale production facilities: driven by market growth and limited numbers of licences.
  • High demand for Cannabidiol (CBD): due to medicinal qualities and non pyschoactive properties.
  • Cannatourism: travel to Colorado/Washington State to legally purchase marijuana.
  • New buyer demographics: i.e. older patients seeking symptom relief
  • Growth in ancillary industries: insurance, IT, security, packaging, consultancy – across State lines.
  • Consumer information services: effects of strains, retailer locations, reviews, guidance (Leafly).
  • Cannabusiness education: schools hosting seminars and offering info and resources.
  • Access to banking services: as adult use/mm licences expand options for finance open up.