Marijuana Business Factbook 2019

119 © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. State-By-State: Legal Overview, Market Data and Outlook | Chapter 2 MJBIZDAILY.COM MARKET OVERVIEW Estimated number of in-state customers 250,00-325,000 Estimated recreational marijuana sales via retail stores in 2019 $638 million (up from $580 million in 2018) Overall 2019 marijuana market $710 million-$730 million SUMMARY What to watch in 2020 Nevada’s recreational marijuana sales totaled nearly $640 million in 2019, a 28% increase from 2018. Rising sales have attracted interest from more multistate and out-of-state operators who want the prestige of having an established brand in Las Vegas, so more M&A activity is expected in 2020. While demand for recreational cannabis remains robust, the market has not yet become oversupplied, though wholesale marijuana prices have fallen slightly as additional producers come online and reach capacity. Marijuana Business Opportunity Rank for 2020 A- Until this year, opportunities for new plant-touching businesses in the recreational market were extremely limited because of licensing restricted to existing MMJ permit holders only. New regulations opened the market to fresh competition, although licenses were largely awarded to well-capitalized multistate operators. Stand- alone cultivators have significant disadvantages in the state because of the propensity of vertically integrated dispensaries to cultivate and sell their own product. Though Nevada’s taxes―especially on adult-use sales― are burdensome, they have not deterred the market from raking in up to $1 million per day in recent months.