The California cannabis market has evolved over the past 22 years from a medical-use market to now also include adult-use.
The market is being fueled by an aging population. Baby Boomers and Gen X spend the most on cannabis each month, with each group increasing spending 19 and 13 percent respectively between 2016 and 2017.
Aside from sales generated by the state’s residents, the market is fueled by cannabis tourists. California attracts approximately 273 million visitors each year and tourists spent approximately $1.32 billion in 2017. As the industry continues its growth, it may see similar trends as in Colorado, where tourists spent $98 million in canna-tourism in 2015, one year after legalization.
Following the legalization of its recreational market, one of the primary hurdles California is facing is considerable taxation on cannabis products. Heavy taxation has led to lower revenue projections from sales for the state. Analysts at New Frontier Data are now predicting a revenue of $1.9 billion in 2018 and $4.72 billion in 2025 for the state’s cannabis market.
The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) provides the regulatory framework for California’s legal medical and adult-use cannabis market. It operates under a dual licensing structure that is governed by three government branches, each responsible for a different facet of the supply chain.
All cannabis companies need to apply for a local and state license in order to operate, regardless of the license. However, obtaining both licenses can be difficult as each jurisdiction has its own regulations that differ from others. As a result, cultivators are often required to move to jurisdictions that better support their business model.
Another development under MAUCRSA targets distribution. Prior its implementation, cultivators were required to go through independent distributors to transport their products to retailers. Now, small cultivators can directly transport their products to retailers. However, licensed distributors are still a necessary component to the industry as they are the only parties that can coordinate third party product testing for quality assurance, review product labelling and packaging, provide transportation for cannabis-derived products and collecting and remitting cultivation and excise taxes for the state.
American cannabis sales hit US$17.5 billion in 2020, a research group’s new study shows.
Meanwhile, a Canadian cannabis producer began offering CBD beverages in the US, another move that shows how interested Canadians are in the overall US cannabis market at the moment.
Some pretty important news out of health and wellness; beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) this week. For those of you following the Company with us, stay tuned.
As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.
A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.
BioHarvest Sciences Inc. Unveils the Unique Polyphenolic Content of Its Upcoming Olive-Based Nutraceutical
The product will include polyphenols known to have significant health benefits.
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.
Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.
The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).