Is Marijuana a Retail Vertical about to Blossom?
It’s time to take America’s legal marijuana market seriously.
Will Marijuana (Cannabis) be the new hot retail vertical for independent retail? It could be a huge opportunity for aspiring retail entrepreneurs as in recent years there has been a push to make it legal in more states in the USA.
A new report by a leading marijuana industry investment and research firm found legal cannabis sales jumped 17%, to $5.4 billion, in 2015 and they will grow by a whopping 25% this year to reach $6.7 billion in total U.S. sales. It is expected to reach $25 Billion by 2027.
Voters in 20 U.S. states could potentially legalize some form of cannabis use in the November 2016 election — part of a historic backlash to the century-old war on marijuana.
New States Joining the Bandwagon
Nevada, California, Vermont and Arizona are considered by some a sure thing to legalize cannabis in some form.
Activists in other states such as: Arkansas, Florida, Georgia, Idaho, Maine, Massachusetts, Michigan, Mississippi, Missouri, Montana, New Mexico, North Dakota, Ohio, Oklahoma, South Dakota, Utah, and Wyoming may have a good chance.
Gallup finds 58 percent of Americanssupport cannabis legalization for adults. States considered most likely to liberalize cannabis laws at the ballot include Nevada, California, Arizona, while midwestern and southern states are more of a long-shot
To read if your home state is on the cusp, read here.
What is interesting about this is not that it’s a debate, it’s pretty inevitable in many parts of the USA and this will organically lead to a lot of Retail demand. They way consumers will consume cannabis also has great diversification leading to many innovative products.
The Future is Green
The average retail transaction size of cannabis in 2015 ranged from between 50$ and 60$ in Colorado. The great variety of the products is also what drives demand, from basked goods to vaping cartridges.
Colorado, remains a great case study on how to do this new vertical in Retail. To get your green fix in Denver, well it’s not so hard any more:
How the cannabis retail vertical borders on medical and recreational is both a boon and a curse. But knowing the trends of its use in the general population, this is soon going to be a very strong vertical for independent retailers. Giving the high volume of demand, they will likely require a cloud POS system.
The New Normal
Depending on which side of the moral fence you sit, this is an exciting or terrifying occurrence. But as vape stores have gone “mainstream” I expect in 2017 this vertical industry to as well.
Do you think cannabis as a retail industry has a bright future? Please share your opinion, in a comment below.
Mar 16, 2016