Marijuana Business Factbook 2019

229 © 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. Financial & Operational Data: Retailers | Chapter 5 MJBIZDAILY.COM CHART 5.04: Estimated Retail Sales In 2019 For Sampling Of Recreational & Medical Markets Source: 2019 Marijuana Business Factbook © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Es�mated Retail Sales In 2019 For Sampling Of Recrea�onal & Medical Markets California Colorado Oregon Alaska Florida Maryland Rhode Island Delaware $2.2B-$2.7B $1.3B-$1.5B $700M-$750M $150M-$180M $450M-$550M $230M-$290M $50M-$65M $20M-$25M Recrea�onal Medical Varying regulatory structures, business climates, patient enrollments and population bases mean market sizes run the gamut. However, one aspect that is consistent across all sectors is that sales in recreational markets are higher than sales in medical markets. This can be traced in part to the size of the markets, as recreational markets are open to all adults of legal age while medical markets serve only a portion of the population. Additionally, product offerings in recreational markets are typically broader than in medical markets, which sometimes prohibit popular products such as smokable flower and edibles. Sales in medical markets generally are concentrated among a smaller number of businesses. For example, if divided evenly over the 22 existing license holders, Florida’s estimated $500 million in sales averages out to approximately $23 million per license. Even Delaware’s estimated $22 million in sales averages about $3.5 million annually for each of its six dispensaries, which serve approximately 7,000 patients statewide. California’s estimated 2019 recreational retail sales of $2.5 billion far outpaces any other state, driven primarily by a population base of nearly 40 million people. However, the state has struggled to rein in its thriving black and gray markets, as high taxes and a limited number of retail stores have kept consumers from making the transition to the licensed market. Once fully mature, California’s recreational market is expected to hit $6 billion annually ― roughly the same size as Canada’s recreational marijuana market. Sales are expected to continue rising in more mature markets such as Colorado and Oregon, though the increases are slowing. In Colorado, for example, retail sales in 2015 were up 90% over 2014, while retail sales in 2018 were just 11% higher compared to 2017.