The marijuana industry has made continual growth in the US over the last few years, with the market nearing $6 billion in 2016. But, the industry is still only at the early stages of growth, with $1.4 billion flowing through dispensaries in the US over the last 90 days. That’s more than the sale of alcohol, tobacco, and soft drinks combined.
The new Marijuana Business Factbook from Marijuana Business Daily (Mbiz) is out, and the legalization of the plant is having a major impact on the U.S. cannabis industry. According to Mbiz, licensed cannabis sales in the U.S. amounted to $1.4 billion over the last 90 days, a number that continues to grow.
According to new statistics released by the FBI, the United States is on track to record a new all-time record for marijuana sales in 2016. A staggering $1.4 billion in marijuana was sold in the last 90 days, with an estimated 143 million grams of marijuana sold nationwide.
In the second quarter, which state sold the most marijuana in the United States?
California takes the lead as the state with the most taxable cannabis sales in the United States of America, with $1.4 billion in sales in the second quarter.
The majority of people aren’t surprised by this, since California has always been at the forefront of the cannabis industry in the United States.
From being the first state to legalize marijuana for medicinal purposes in 1996 to today being home to some of the country’s largest cannabis fields and shops.
Cannabis Sales in the United States
The cannabis business generates billions of dollars in income from jurisdictions that have legalized recreational or medicinal cannabis usage.
Because the substance is remains illegal under federal law, sales are restricted. However, the drug’s popularity among patients and adults in the nation has not waned.
The sales of marijuana are rising in each state as more pro-cannabis legislation are passed.
Cannabis shops are classified as miscellaneous store merchants by the US Department of Commerce.
According to the most recent data collected from this sector, cannabis dispensaries alone boosted sales by 3.5 percent from June to July.
These dispensaries are no longer classified as “small.” Every dispensary in the nation is doing very well.
Total retail sales slowed in the fourth quarter, while cannabis retail sales soared. This transaction had a significant impact on the economy.
At the time of writing, 15 states have legalized recreational marijuana, while 35 states allow licensed patients to participate in medicinal marijuana programs. Few states have stood out in terms of how quickly they have developed infrastructure and enacted additional laws to support the development of their cannabis industries.
California, Colorado, Michigan, Washington, Nevada, and Illinois are among these states.
California has the most cannabis revenue in the United States.
In 2020, cannabis sales will generate over $800 million in tax revenue. In the previous year, California’s medicinal and recreational marijuana industries generated combined sales of up to $4 billion.
In the United States, California has the biggest legal cannabis market. Because of the huge profits that may be made from the cannabis business, investors flock to the state in droves.
Despite having just a three-year-old recreational marijuana sales industry, the state retains the distinction for having the largest legal recreational cannabis market, surpassing Washington and Colorado. The surge in sales is expected to continue in the coming months.
Insight Into California’s Cannabis Sales
California’s taxable cannabis sales rose by 11.2 percent, according to statistics published by the California Department of Tax and Fee Administration (CDTFA). In the second quarter, taxable cannabis sales totaled $1.4 billion.
This implies that legal cannabis sales have increased by 108 percent in the second quarter of 2019 and by 24.4 percent in the second quarter of 2020.
The numbers above are astounding since they exclude medicinal marijuana and black market sales.
The government cannot tax medical marijuana sales in California, and the black market sector has no trackable records for the CDTFA to monitor and report on.
Analysts think that black market sales, which are off the charts, often equal or exceed regulated market sales.
The government earns money through the excise tax, cultivation tax, and cannabis sales tax received from market participants as a result of the laws that regulate the legal recreational market.
Other variables contribute to the legal recreational cannabis market’s expansion.
The state’s population
California is the United States’ third-largest landmass. As a result, it is one of the country’s most populous states. Its vastness also makes it ideal for cannabis growth.
California produces the highest-quality cannabis in the nation, so there is enough to sell both within and beyond the state.
Every year, the Emerald Triangle, which spans Mendocino, Humboldt, and Trinity counties, generates approximately 1.7 million pounds of cannabis; think how many millions this amounts to— and this isn’t the only place in the state where cannabis is grown.
Culture of Cannabis
Californians, whether young and elderly, have shown a high level of cannabis cultural dominance. California was the worldwide hub of cannabis culture within the states in the 1960s, with people embracing the substance for both medicinal and recreational purposes. This culture has not faded, and it adds to the state’s strong cannabis sales.
Tourist Attractions
Each year, the state receives a large number of tourists. A total of 260 million visitors visit California each year.
California, like Colorado, is preparing to increase cannabis tourism in the state.
These new visitors will be able to learn about the state’s long-standing cannabis culture as well as the legalization of the substance.
What to Anticipate
According to Wolf Ritcher’s research, cannabis retail sales have a distinct growth trend that is seldom seen in other retail sectors. The state’s taxable cannabis sales were a little over $2.6 billion in July of last year, and they’ve already risen by 48 percent to $5.1 billion.
The high taxation of items should be investigated since it encourages illicit market players to continue churning out low-cost goods. Residents have discovered that they may get around this by buying medicinal marijuana items instead. Thousands of individuals purchase legal adult-use marijuana every day, despite the hefty taxes.
Conclusion
California is a great illustration of how the country’s economy might flourish if marijuana was legalized across the board.
When federal rules are enacted, other states will be better positioned to expand cultivation and sales. Perhaps one of these states will be able to challenge California’s dominance in the cannabis industry. It will also urge the NAICS to establish a cannabis retail sales category.
Until then, California will continue to be the envy of cannabis markets throughout the globe, with yearly retail sales in the billions of dollars. For a long time, it will be a cannabis superpower.
