The sales of medical and recreational Marijuana in the US is expected to hit $5-$6 billion this year. Researchers say that by 2021, it will be high as $17 billion. It’s a great Dispensary News for the Marijuana Industry and for people who are looking forward to going in this.
The main reason behind the rapid rise of Marijuana sales in the US is its legalization. The editorial director of Marijuana Business Daily says that there will be immense opportunities for both existing marijuana companies along with the new startups.
Growing Sales for Pot Shops Industry-Wide
In 2017, the sales have increased from $4-$5 billion from the last year. This year, recreational shops alone are generating $2.6-$2.9 billion of sales whereas medical shops can generate about $2.5-$3.2 billion. It is not uncommon today to have a Las Vegas dispensary generate annual revenue well over $10,000,000.
The market is growing at a rapid pace in Oregon, Washington state, Alaska, Colorado and other states as well.
This is amazing Dispensary News for the Marijuana Industry and the dealers.
The industry will further flourish in the coming years, when all the 11 states who have passed the marijuana-related rules and regulations, will come online for its sales. There is a chance that these states by 2021, will solely generate more than $7 billion or even more in a year.
Some of the major facts are:
• Approximately half of the revenue generating Marijuana companies are working actively to raise their capital or planning to do so by the end of this year. The conditions may vary from company to company, as some are looking for capital to pay their bills till they generate profit, some need to capital to upgrade their labs for testing, etc.
• Regarding profitability, though dispensaries and other recreational stores have a profit margin of 19%, they are doing well. As compared to the traditional economy, these margins are high but still, the retailers get a small profit from any of the marijuana industry.
• Most infused product companies are manufacturing more than one type of product, focusing majorly on edibles and concentrates. Only 25% companies are choosing to produce a single category. You will find a lot of infused businesses selling topical but will find only 6% selling topical exclusively.
Still, the legalization has increased the demand for Marijuana in the US, which opened several opportunities for the new startups. It’s one of the biggest Dispensary News for the Marijuana Industry.