California\u2019s legal cannabis market is on pace to earn $3.1 billion this year, but the state\u2019s decades-old underground market is nearly triple that, on pace for $8.7 billion in revenue. <\/p>\n
This is according to the newest numbers from Arcview Market Research and BDS Analytics<\/a>\u2019 report \u201cCalifornia: Lessons From the World\u2019s Largest Cannabis Market,\u201d which was released today. Even though California will see a predicted 23% growth in the market this year, according to The Arcview Group<\/a>\u2019s CEO Troy Dayton, the state\u2019s best days are still ahead.<\/p>\n \u201cDespite the burdens imposed on the legal market by regulators, with a $2.7 billion gross domestic product [in 2018], California<\/a> has the world\u2019s largest legal cannabis market and will continue to until federal legalization makes it merely a part of the larger U.S. market,\u201d Dayton said. \u201cAt that point, California will assume its usual place in the world economy as a major exporter of agricultural commodities and their derivative products, a technology mecca, and consumer product trendsetters.\u201d<\/p>\n The report also noted \u201cCalifornia companies that survived the dual \u2018extinction events<\/a>\u2019 of 2018 have emerged stronger and well-positioned to grow their market share going forward,\u201d said Tom Adams, managing director and principal analyst for BDS Analytics\u2019 Industry Intelligence group and editor-in-chief for Arcview Market Research. \u201cMore than that, they are battle-hardened, and kicked off a merger and acquisition flurry in the first half of 2019 that will allow them to leverage their positions in California to compete across the country.\u201d<\/p>\n Another big takeaway from the report is that people don\u2019t like paying a ridiculous amount of taxes<\/a> on their cannabis, and that\u2019s not going to change anytime soon.<\/p>\n<\/blockquote>\n 2019 is expected to see Researchers expect California\u2019s previous governor, Jerry Brown, had predicted<\/a> the legal market would generate $643 million in 2018. Brown ended up a bit off the mark. \u201cActual cannabis-related tax revenue fell short of projections, totaling just over $345 million, with $182 million coming from cannabis-specific excise taxes and $36 million from cultivation taxes,\u201d the report noted.<\/p>\n The report also presented the most up-to-date picture of who is buying cannabis in California. BDS Analytics\u2019 consumer insights research shows that the average legal cannabis consumer is 44 years old, a far cry from claims the medical market was a cover for mostly young healthy men. <\/p>\n Regardless of how old In general, the report was a California-specific version of Arcview\u2019s flagship annual report<\/a>, The State of Legal Cannabis Markets. That has been one of the main measuring points for the growth of the global cannabis industry this decade. <\/p>\n TELL US,<\/strong> do you buy cannabis on the underground market because of high legal taxes?<\/p>\n The post California\u2019s Underground Market Is Nearly 3 Times Larger Than Legal Market<\/a> appeared first on Cannabis Now<\/a>.<\/p>\n
California\u2019s legal cannabis market is on pace to earn $3.1 billion this year, but the state\u2019s decades-old underground market is nearly triple that, on pace for $8.7 billion in revenue. This is according to the newest numbers from Arcview Market Research and BDS Analytics\u2019 report \u201cCalifornia: Lessons From the World\u2019sContinue Reading<\/a><\/span><\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2463,3730,4588,148,50,2766,170,5143,690,4552,166,153],"tags":[],"_links":{"self":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/37549"}],"collection":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/comments?post=37549"}],"version-history":[{"count":1,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/37549\/revisions"}],"predecessor-version":[{"id":37550,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/37549\/revisions\/37550"}],"wp:attachment":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/media?parent=37549"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/categories?post=37549"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/tags?post=37549"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nCalifornia was the first state that saw a drop in sales in the year it
\ntransitioned to the adult-use market. Californians spent $500 million less in
\n2018 than in 2017, following the start of legal sales on Jan. 1, 2018. But this
\nyear, the market looks to be on pace to bounce back. <\/p>\n\n
\nCalifornia\u2019s illicit market bring in $8.7 billion in revenue, nearly three
\ntimes what consumers in the legal market will spend at $3.1 bilion.
\nCalifornians enjoyed \u201cthe hoopla of long-awaited legalization and then quietly
\nreturned to traditional sources when they saw after-tax prices reflective of
\nthe 77% tax-and-regulatory load the legal market bears,\u201d the report said. <\/p>\n
\nunregulated marijuana purchases to continue to thrive and still make up 53% of
\nall sales in California by 2024. They noted in states with \u201cmore supportive\u201d
\nregulators, the illicit share for the market is expected to drop to 30% in the
\nsame time frame. It\u2019s worth noting those other markets didn\u2019t have an
\nunderground economy with 50 years of infrastructure to compete with like
\nCalifornia does. <\/p>\n
\nthey are, consumers are certainly a part of the cannabis industry, and the
\nauthors present a case that they are an underserved community. Oregon has one
\ndispensary for every 5,567 adults and Colorado has one for every 4,420. But in
\nCalifornia, there is only one licensed retailer for every 35,147 people over
\nthe age of 21. A major contributing factor to that is the many counties and
\nmunicipalities that have banned cannabis businesses. <\/p>\n
\n
\nRead More: California\u2019s Underground Market Is Nearly 3 Times Larger Than Legal Market<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"