Marijuana Business Factbook 2019

19 © 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. National Trends | Chapter 1 MJBIZDAILY.COM CHART 1.15: Cannabis Companies’ Outlook For The Next 12 Months: Breakdown By Sector Source: 2019 Marijuana Business Factbook © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Cannabis Companies' Outlook For The Next 12 Months: Breakdown By Sector Stand-Alone Retailers Ancillary Services Firms Ancillary Technology & Products Companies Cannabis Product Manufacturers Producers/Processors Wholesale Cultivators Vertically Integrated Retailers 100% 99% 97% 96% 92% 92% 83% 17% 4% 4% 4% 4% 4% Percent Of Businesses Worse About The Same Better 9 97% 96 92 83% 3% 1% Across all sectors of the marijuana industry, businesses were extremely optimistic about their prospects over the next 12 months. While a certain level of confidence and hopefulness about the future can be ― and often is ― an asset to entrepreneurs, these results suggest that many business owners have an unrealistic outlook for the market and/or are naively confident about their ability to overcome the many pressures facing their businesses. The wholesale cultivation segment of the industry is a prime example of this optimism bias. More than 90% of respondents in this segment believe their businesses will be better off in 12 months. The headwinds facing wholesale cultivators ― namely, supply gluts and plunging wholesale prices in recreational markets ― will be too much for many businesses to bear in 2019. Without a major shake-up to the market’s status quo, far more than 4% of wholesale cultivators likely will be worse off in 12 months than they are now. While other segments of the industry do not face the same extreme and immediate pressures as wholesale cultivators, the portion of companies expecting to be doing better in 12 months does not accurately reflect the marijuana business climate.