There is much more in fact, as amply demonstrated in the MMJ Business Factbook 2016 that’s now available. Since California first took tentative steps to decriminalize medical marihuana in 1992, twenty-two more states have joined the campaign – and you can smoke your pot for pleasure in Alaska, Colorado, Oregon, and Washington with good money coming from it too.
U.S. Cannabis Retail Sales Estimates
Writing in the Motley Fool Sean Williams debates what he calls ‘the real-life unstoppable force and immovable object’, the former being the relentless drive by voters, and the latter the reticence of the federal government. We wonder what would happen if they applied the same conservative approach to alcohol and tobacco trade. Would anyone dare to ask?
Last year in California, legal marijuana sales were 42% up year on year and totaled $996 million. Close to 59% of these were for the recreational variety, and the state earned $135 million in taxes. As far as we are aware the dome is still on the California legislature, and the church steeples did not come tumbling down. With marijuana profits comparing like this, no wonder marijuana investors are smiling.
Profit Margins of Infused Product Makers
It has become increasingly obvious that the majority of Americans are behind these moves. In July 2015, Matt Ferner, national reporter for Huffing Post had CBS finding 53% support, and Fox News trailing slightly at 51%. While this confirms solid positive interest in marijuana products, this does not guarantee a good business proposition throughout the industry.
Profitable Revenue Generating Cannabis Businesses
These discrepancies may be the result of structural imbalances in the market. Farms and dispensaries are well established, and in semi-open competition, whereas testing labs are still relatively rare and require larger capital injections. We are interested to note that ancillary firms are coming a good second currently. We would have thought sourcing greenhouses and fertilizers was as simple as picking a phone.
Federal intransigence is not the only factor holding marijuana business back. While some states may have workaround arrangements, Sean Williams reports that a paltry 3% of banks are interested in helping marijuana grow in several ways. This opens up avenues for third party investors to seek conspicuous yields. 2016 could be a good year to enter before the real rush starts.
Percent of Marijuana Companies Backed by Owners
