Marijuana Business Factbook 2019

149 © 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 SUMMARY What to watch in 2020 Most medical marijuana patients have shifted over to the recreational system in Oregon, leading to further growth in the adult-use market. Wholesale prices have dropped dramatically because of a massive glut in supply and nearly 2,000 licensed adult-use businesses. The oversupply in the legal market has ended up on the illicit market in Oregon and elsewhere. The glut also has led to increased compliance checks and enforcement from state regulators and authorities, including monitoring outdoor harvests. In June, Gov. Kate Brown signed a cannabis export bill into law. But the state will need buy-in at the federal level to engage in interstate commerce, leading two lawmakers from Oregon to introduce congressional legislation that would allow such trade between states. Another bill recently signed into law gives regulators more authority to reject applications for new cultivation licenses. The state had previously issued a moratorium on new licenses until it worked through its backlog of applications. Some marijuana growers are pivoting to hemp, which they see as more favorable. Marijuana Business Opportunity Rank for 2020 B Oregon’s MMJ opportunities have become much less enticing to entrepreneurs and investors in the state, as much of the medical market’s success has been cannibalized by the rapid growth of the adult-use sector. Barriers to entry are low for MMJ growers, but competition is high, with thousands already in the market and a major supply glut suppressing prices. Demand for recreational marijuana continues to be strong, and with an unlimited number of licenses to be granted, opportunities can be found. However, existing businesses across the adult-use supply chain face significant challenges stemming from an oversupply situation characterized as "dire.”