Our friends over at NowSourcing recently teamed up with BusinessStudent.com to put together an infographic based around the business of cannabis. And indeed, the cannabis business is on the rise.
You’ll now find medical marijuana legal in 29 states and Washington D.C. Recreational marijuana is legal in eight states and Washington D.C. And by 2025, the cannabis business is expected to be worth $24 billion.
But we’re interested in what the business of cannabis means for you, the consumer. So we’re taking a look at how the emerging cannabis market can benefit you and your medical or recreational use.
You can view the full infographic below.
Here’s a breakdown of the findings on the business of cannabis:
What the average consumer spends
On average, the medical marijuana consumer purchases cannabis every 10 days, spending $136 per transaction, according to BusinessStudent.com. That’s around $400 per month spent on cannabis products per consumer, or nearly $5,000 per year. It’s no wonder so many people are looking for deals on cannabis.
The average recreational user purchases every 14 days and spends $49 per transaction, or around $100 per month.
The best states for purchasing cannabis
Colorado and California are two of the best states for opening a cannabis business, according to BusinessStudent.com. In fact, Denver has twice as many cannabis dispensaries as it does Starbucks shops — that’s tough to do. And California just legalized recreational in 2018, making way for a range of businesses.
For the consumer, that means much more selection and more competitive prices.
It’s a cash business, mostly
Because many financial institutions refuse to cater to marijuana businesses due to the murky legal climate — cannabis is technically still illegal under federal law — cannabis businesses are generally forced to operate through cash, notes BusinessStudent.com.
So if you’re headed to the dispensary, make sure you stop by the ATM.
The legal and political climate gets muddier
Jeff Sessions recently rescinded Obama-era memos that assured cannabis businesses they wouldn’t face federal prosecution given that they followed their state’s laws, notes BusinessStudent.com.
That doesn’t necessarily mean that the Fed will be knocking down doors anytime soon. It also doesn’t meant that they won’t.
The general concensus is the medical marijuana users will remain safe. Recreational users might remain safe as well. But with this mercurial administration, cannabis businesses are treading lightly.
Where prices are headed
Over the past several years, as cannabis has become legalized recreationally throughout a number of states, cannabis prices have dropped overall. Sure, California cannabis prices have seen a rise, but that’s largely due to the new legalization efforts and hefty tax laws.
Colorado has seen a dip in marijuana prices since they legalized, which is the same for Washington and Oregon.
Chances are, as more states legalize, we’ll see cheaper cannabis prices and more selection overall.
Infographic: The Business of Cannabis