THE MARKET

We help our clients too deeply understand the cannabis consumer to anticipate their needs.

The market comprises registered patients with a qualifying condition who purchase cannabis through their state licensed dispensaries or adults who purchase cannabis through licensed retail outlets in states that have established a Tax and Regulate system.

The businesses supplying the consumer market are made up of licensed plant-touching operations such as cultivation, processing, lab testing and dispensing entities (medical or adult), and ancillary services/products such as insurance, security, design, packaging and cannabis lifestyle products.

The market is showing early signs of maturity as US based Multi-State Operators start to emerge. Cannabis policy reform discussions are taking place at Federal level. And multi-million dollar investments in the cannabis industry are just the start of a trend towards more mergers and acquisitions.

  • The US national medical marijuana market has an estimated average value in 2018 of $3.6 bn.*
  • This is projected to increase by 69% in 2020 to $6.1bn.*
  • The marijuana industry is projected to deliver an economic impact of over $39 bn in 2019 through new business strart ups, state/local taxes, real estate development and earnings circulating back into the economy.*
  • Overall the entire cannabis market is projected to employ over 175,000 people and have a value of $50 bn plus in 2019.

*Marijuana Business Daily Annual Factbook 2019.

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.