Cannabis is a widely used substance. It is common in society and in culture. There are certain groups that use it, places that use it, and ways to consume it.
In the United States, there are two major forms of cannabis. The first is thin (usually non-psychoactive) CBD cannabis, and the second is thick (usually psychoactive) THC cannabis. These two substances are joined together in a process known as cannabis concentrate.
Thin CBD cannabis can be consumed as a supplement, eye treatment, or hair care product. This is important to note, because many people who suffer from cancer or other chronic diseases do not want to take prescription drugs because of their side effects.
The second type of cannabis is thick THC cannabis.
The size of the California marijuana market
As of January 2018, there were an estimated 43 million Americans who used marijuana. This is a little odd number, as you would think that with such a widespread drug, more people would be using it.
But the truth is that only about 2 to 3 million people are actually able to buy marijuana legally in the United States. The rest are forced to purchase it illegally. This illegal market continues to thrive due to its convenience.
Many people find it easier and more comfortable to buy marijuana than going through a dispensary or being involved in a legal cannabis possession or smoking arrangement. Deposits can be made via debit or credit card and picked up within minutes!
The size of the California marijuana market has had an impact on the rest of the state and U.S. market.
The legalization of cannabis in California created a ripple effect across the entire American cannabis market
The legalization of cannabis in California created a ripple effect across the entire American cannabis market. Previously marginalized communities, such as homeless people, were invited to join the growing cannabis culture. These individuals were previously excluded from mainstream society due to their drug usage, but thanks to the legalization of cannabis in California, they were now able
to do so.
These individuals were previously excluded from mainstream society due to their drug usage, but thanks to the legalization of cannabis in California, they were now able to do so. Whereas before they might have relied on marijuana as a relief from pain and illness, these individuals could now pursue careers related to marijuana and its effects.
These individuals were previously excluded from mainstream society due to their drug usage, but thanks to the legalization of cannabis in California, they were now ableto do so.
Increased demand
Increased demand has been one of the primary reasons why the market has grown so quickly. Since 2014, when California first legalized marijuana, dispensaries have been opening at an alarming rate.
Most of these new stores are vertically-integrated business, meaning that they buy their materials from other suppliers and then formulate their products themselves. This is very rare, as most companies do it only for special occasions or large events such as football games!
The new stores are usually very profitable due to their expertise in production and distribution.
More consumers frequenting marijuana dispensaries
As more people start experimenting with marijuana, more users open up to find it is one of their favorite hobbies. This causes more people to want to use the product, which increases sales for both marijuana and accessories.
Increased consumer traffic increases overall business operations and profits, making working as a manager in the cannabis industry is gaining popularity. Many large companies are now recruiting managers with experience in running a business as well as marketing and advertising techniques.
As more people begin investing in the cannabis industry, increased demand eventually results in higher prices which makes it less affordable for everyone. Luckily for everyone, California has been producing plenty of quality cannabis which keeps price points low enough to gain attention from new investors.
Higher sales volumes of cannabis products
Increased sales volumes are what effect companies on the American cannabis market. Because more people are trying to find the best product for them, more companies are entering the market to offer their product.
This competition is what keeps products high quality and affordable for their user population. If a company offers a low quality product that is expensive, other customers will look away and not purchase from that company due to the price being too expensive.
This has been seen in the medical marijuana industry where some products were expensive but did not work or last long enough for it to be effective. With new products coming out every month, individuals will keep working towards getting a good quality product that does work.
More entrepreneurs entering the industry
As more individuals begin to take an interest in marijuana, the demand increases for their products. More businesses enter the industry to offer their services to the community.
More availability of products such as oil, hashish, and hash cakes increase demand and create new members to the group. These individuals continue to support each other and each business as they share their product and/or service and the community as a whole.
Supporting a business comes with costs such as advertisements, publicly displayed signs, ornaments, and maybe even financial help in case of emergency. All of these things are mandatory for new members to this community to have access to.
By having more individuals join the cannabis community, there are added costs that go along with it.
Investment opportunities emerge
As more people begin to realize the legal benefits of marijuana, investment opportunities emerge. As more and more states legalize, additional investment opportunities arise.
For example, New York just announced that it plans to license 30 marijuana farmers in 2019, making it the largest grower market in the world. Or California has been pioneers with its legal market having launched in January 2018 and now has over 40 total companies growing both cannabis and non-cannabis products.
These new investors come into the market with their own objectives and plans for California’s cannabis industry. Some see it as an opportunity to get involved at a low cost, while others see an entry point into the North American cannabis markets.
Tourism related to marijuana culture becomes popular
Tourism related to marijuana culture has become very popular. There are even travel guidebooks designed for people interested in this culture.
Because of the budding tourism industry, California has a high demand for marijuana products and services. As a result, prices for cannabis are extremely low due to this growing industry.
Most regions that have a large cannabis market use the term “rent-a-marijuana” to describe their business model. People pay money to come and find themselves a nice quiet place to relax and enjoy their product or service.
This model works well as it gets people involved with the product and company, but does not require huge sales or production capacities.
