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'
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
The Benzinga Cannabis Capital Conference is coming to Florida
The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.
Get your tickets now on bzcannabis.com – Prices will increase very soon!