Marijuana Business Factbook 2019

97 © 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 MARKET OVERVIEW Estimated number of in-state customers 1,300,000-1,600,000 Estimated recreational marijuana sales via retail stores in 2019 $445 million (up from $16 million in 2018) Overall 2019 marijuana market $605 million-$640 million SUMMARY What to watch in 2020 2019 was the first full year of sales in the state’s rec market, and it didn’t disappoint. Massachusetts generated nearly $450 million in rec sales, which was significant given that only 39 adult-use retailers are operating throughout the state. In late September, regulators approved social consumption lounges and home deliveries, which will be reserved for social equity and economic empowerment applicants for the first two years. Home delivery could begin in early 2020, but it will likely take longer for consumption lounges to get up and running. The state’s medical market continues to grow, but with the introduction of recreational cannabis, it’s not clear how much growth is left. Marijuana Business Opportunity Rank for 2020 A Between medical and recreational marijuana, opportunities abound for cannabis businesses in Massachusetts. As the first state on the Eastern seaboard to begin adult-use sales, the state has benefited from out-of-state traffic in addition to local consumers. Investors stand to benefit from the low barriers to entry and unlimited number of rec licenses available in the state. The medical marijuana program has so far proved resilient, adding nearly 5,000 patients since recreational sales began―likely stemming from the tax-free status of MMJ versus the 17%-plus tax placed on adult-use cannabis. But MMJ sales are expected to wane over the long term as the adult-use program gains steam.