Marijuana Business Factbook 2019

Marijuana Business Factbook 2019 Chapter 2 | State-By-State: Legal Overview, Market Data and Outlook 176 © 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. WASHINGTON STATE Recreational continued SUMMARY What to watch in 2020 In the past two years, it has become evident that businesses and consumers alike are more interested in the recreational system than the medical market in Washington state. Although the state has experienced oversupply challenges for several years, and wholesale flower prices were once some of the lowest in the country, the market has experienced an increase in prices in recent months. Smaller operators have gone out of business in Washington state because the market was too competitive and profit margins were unfavorable. Adult-use sales in the state ended 2019 at $1.1 billion, up 9% over 2018. That marks the first time Washington state’s adult-use market posted only single-digit, year-over-year sales growth—a trend that’s likely to continue into 2020 given the relative maturity of the state’s cannabis industry. Marijuana Business Opportunity Rank for 2020 B As Washington state’s marijuana industry continues to grow, it moves closer to saturation. More than 450 retailers and 1,000 producers/processors are licensed throughout the state, generating stiff competition and suppressing wholesale cannabis prices. There are proposals to allow small growers to increase canopy square footage and allow them to deliver medical cannabis products directly to MMJ patients, but it’s unclear if these measures will pass or how much of an effect they would ultimately have on small cultivators’ bottom lines. Demand for adult-use cannabis is increasing, though the gains in the market are far less dramatic than in previous years, putting more competitive pressure on existing businesses and making it difficult for new market entrants to gain a foothold.