Marijuana Business Factbook 2019

258 Marijuana Business Factbook 2019 Chapter 6 | Cannabis Testing Labs and Ancillary Firms © 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. CHART 6.06: Number Of States Served By Ancillary Businesses Source: 2019 Marijuana Business Factbook © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Number Of States Served By Ancillary Businesses 0 2 4 6 8 10 12 14 16 18 20 Median Number Of States Served Ancillary Services Ancillary Technology & Products Companies 19 5 Both types of ancillary companies ― those providing services and those supplying technology and products ― have their eyes on becoming multistate operators. A portion of ancillary companies in both categories indicated they were already operating in all 50 states and Washington DC. On the whole, individual ancillary technology and products companies operate in a median of 19 states compared with a median of five states for ancillary services firms. Entering multiple states may be a simpler process for firms offering products and technology than those providing services. Ancillary service providers are more likely to need state-specific tailoring than technology and products firms. Lawyers, licensing consultants or marketing managers will need to be well-versed on the minutiae of the rules in each state in which they operate, while the adjustments needed for technology or products are likely less intensive. Ancillary companies working in cannabis are largely headquartered in states with some form of legalization, with the highest concentration in states with legalized adult use. A quarter of ancillary firms responding to our survey are headquartered in California, with Colorado, Florida, Washington state and Massachusetts rounding out the top five. Despite industry challenges on the ground, California’s size and potential make it an attractive state, while Colorado remains a mainstay for cannabis businesses. Massachusetts’ adult-use sales began during the last weeks of 2018, but benefiting from its status as the first recreational state on the densely populated Eastern Seaboard, the market has been successful so far. Of the five aforementioned states, Florida is the only one without adult use, but the state’s medical industry is booming, and recent advances ― including the addition of smokable flower and new rules for edibles ― should support continued growth.