Are you thinking of operating a cannabis dispensary? There’s no better time than now to get into the marijuana business. And, California may be a great choice.
The United States is becoming increasingly tolerant and accepting of cannabis. More than 30 states have already passed legislation that decriminalizes the use and purchase of this once prohibited substance. California has been one of the most active in cannabis legislature and lobbying.
As more states begin to condone cannabis, the scientific and medical communities are touting the benefits of the substance. What this has resulted in is a recent boom in the cannabis industry, according to top cannabis industry news sources.
To learn more about the California cannabis market, read our top 5 California cannabis industry facts!
California Was the First State To Legalize Marijuana
California paved the way for other pro-cannabis states when it legalized marijuana in 1997. Since then, other states have followed suit, with Connecticut, Mississippi, and Missouri actively lobbying for cannabis decriminalization.
In its infancy, cannabis use in California was limited to medical usage. Since then, the state has relaxed its regulations, now allowing recreational usage within certain limits.
California Has the Largest Cannabis Market in The United States
Canada is still home to the largest cannabis-growing company in the world. Nonetheless, the United States still dwarfs the Great White North when it comes to demand and circulation.
States like California contribute to the United States’ foothold on the cannabis market. California has earned the top rank as having the largest market for cannabis and cannabis-related products in the United States.
In 2019, the state recorded an estimated $3.1 billion in cannabis sales. A year later, the sale of the substance alone brought in as much as $4.4 billion in net profit, according to Forbes.
California Is Home to More Than 9,000 Cannabis Businesses
The state is notorious for being cannabis heaven. There is no shortage of establishments from which people can purchase marijuana. According to recent marijuana business news, the state has issued more than 9,700 licenses for the operation of cannabis businesses. These businesses are categorized into:
- Dispensaries
- Delivery services
- Cannabis flower sellers
- Growing services
- Online stores or retailers
The California Cannabis Industry Has Developed Into Different Sub-Niches
More than 9,000 different cannabis businesses operate in California. These businesses collectively comprise California’s cannabis industry.
Within the cannabis industry are sub-niches. These sub-niches often correspond to the different parts of the cannabis supply industry. For example, a business owner may choose to bill a business as an online store for CBD oil. Or, he or she may choose to operate as a delivery service for cannabis and cannabis-derived products.
Other niches like marijuana growing and bulk reselling have also emerged as parts of the cannabis industry. These sub-sectors of the industry can even determine the types of cannabis licenses or business permits required for a business.
Cannabis Licenses Are Expensive in the State
Despite growing acceptance, changing rules and regulations can be obstacles to starting an online or brick-and-mortar dispensary in California. Rules about the requirements for a cannabis business are also subject to change at virtually a moment’s notice.
The basic requirements for a cannabis business include:
- Employer identification number (EIN)
- Business bank account
- Criminal background checks
- Sanitation permits in some states
These may be inexpensive. However, as of 2017, fees have been increased dramatically for Cannabis licenses. Cannabis licenses are now very expensive. For instance, a license for a cannabis dispensary in New Jersey can cost as much as $20,000.
In California, the cannabis license can cost anywhere from $1,250 to a staggering $77,000. On average, cannabis business owners in the state need to pay the median amount which is roughly $13,000 to $25,000.
Final Word: California Is a Haven for Cannabis Users and Businesses
The size of California’s cannabis market represents the state’s pro-marijuana stance. By breaking ground in cannabis legalization in 1997, California has evolved in its stance on the sale, distribution, and recreational use of cannabis.
California dwarfs other states in the cannabis market. Registering record number sales and profits since 2019, California deems the cannabis industry as a legitimate source of economic growth. With more than 9,000 businesses wanting a share of the profit pie, the California cannabis boom is predicted to continue.
While cannabis licenses in the state are steep, it seems to do little to hinder the ambitions of business owners. In short, the future looks bright for California’s cannabis industry.
