Market Overview

California's Legal Cannabis Market To Reach $3.1B In 2019 Sales, Report Says

Share:
California's Legal Cannabis Market To Reach $3.1B In 2019 Sales, Report Says
Read more about our latest Cannabis News! CANNABIS HOME

A new report by Arcview Market Research and BDS Analytics projects California’s legal cannabis market to reach $3.1 Billion in 2019 Sales. The firms are forecasting a 19% compound annual growth rate over the next five years, which will place annual consumer spending at $7.2 billion in 2024.

"Despite the burdens imposed on the legal market by regulators, with a $2.7 billion gross domestic product, California has the world's largest legal cannabis market and will continue to until federal legalization makes it merely a part of the larger U.S. market," said Tom Adams, Managing Director and Principal Analyst for BDS Analytics' Industry Intelligence group and Editor-in-Chief for Arcview Market Research.

A State In Recovery

According to the report, states like Colorado, Oregon and Washington saw consumer spending on adult-use cannabis double within the first year of recreational legalization.

California however, was the first state to lose consumer spending in an year-over-year basis since switching to adult-use from a medical-only framework. The market shrunk from $3 billion in 2017 to $2.5 billion in 2018 due to local bans on commercial activity and strong testing regulations. Product shortages caused a big number of suppliers to shut down activities.

"California companies that survived the dual 'extinction events' of 2018 have emerged stronger and well-positioned to grow their market share going forward," said Troy Dayton, CEO of the Arcview Group. "More 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."

With a better established local industry, the Sunshine State is set to recover from its initial setback and grow consistently, achieving 2017’s spending numbers back by the end of this year.

Related Links:

Cannabis CEOs See Holistic Branding As Key To Consumer Experience

Big Opportunities: Michigan Cannabis Market 'Could Easily Eclipse $2B'

Read more about our latest Cannabis News! CANNABIS HOME

Posted-In: ArcView Group BDS Analytics California Troy DaytonCannabis Markets Best of Benzinga

 

Related Articles

View Comments and Join the Discussion!

Cannabis Movers

Sign up for our secret cannabis newsletter!
Never miss out on the breaking news in the Cannabis Industry!

Here's What The Street Is Saying As Retail Earnings Heat Up

Delta, Virgin Atlantic To Expand Cargo Network Between U.S. And U.K.