Wholesale marijuana prices in Nevada increased sharply around the July 1 rollout of the state’s new recreational program, a week in which businesses faced stronger-than-anticipated demand and supply shortages caused by hiccups in the distribution process.
As Massachusetts lawmakers debate a compromise to the adult-use marijuana law voters passed last November, industry observers are concerned the proposed bill – and a potential doubling of the tax rate on recreational cannabis – may weaken consumer demand for legal MJ and in turn bolster the state’s black market.
Primed to become one of the nation’s most lucrative medical marijuana markets once it’s up and running, Florida’s program will license just a handful of businesses to produce, process and distribute all MMJ sold in the state.
It’s a situation that may give rise to some of the nation’s largest marijuana firms.
The U.S. cannabis industry is poised to inject nearly $70 billion on an annual basis into the American economy by 2021, an eye-popping figure that underscores the broader economic impact for towns and municipalities that accept legal marijuana businesses into their communities.
Typical startup costs for wholesale cannabis cultivation businesses launched in the last three years amount to $42 per square foot, according to data in the newly released Marijuana Business Factbook 2017.
Washington DC’s medical cannabis market is one of the smallest in the nation, but the program is adding patients at a healthy clip – and new business-friendly regulations as well as increased public outreach could push the numbers much higher.
The number of medical marijuana dispensaries and registered patients in Oregon is plunging now that the state’s recreational cannabis industry is fully operational, casting a cloud of uncertainty over the MMJ program’s future.