A Market With Explosive Growth
There are 30 states where marijuana has been legalized. Based on growth in 2016, the legal marijuana market is now forecast to reach $22.8 billion in 2020. The State of Legal Marijuana Markets Report estimates that this market will expand at a compound annual growth rate (CAGR) of 31%. This makes the legal marijuana industry one of the fastest growing sectors in the U.S. economy.
California Medical Marijuana Patients
720,000 in 2016
Age of Marijuana Users
25 to 29-year-olds account for the largest percentage of customer loyalty members (20%), followed by 21- to 24-year-olds (16%). Yet the average customer age is 37.6-years-old, which is a higher than one might expect given stereotypes about marijuana users. The average age for female customers is slightly older at 38.2 while the average age for males is 37.4. People ages 65 to 95 make up less than 5% of customers.
Marijuana Expenditures Per Store Trip
The spending habits of medical marijuana patients can vary greatly by state, with the average purchase amount at dispensaries ranging from $60 in some markets to more than $100 in others, according to a survey of business owners conducted for the 2015 Marijuana Business Fact book.
Medical Marijuana Supply Chain
In simple terms, the supply chain goes like this: Cultivator/growers>dispensaries>customers with some quality control points in the mix. It acts like any other agricultural product in that sense. But due to the fragmented regulatory position of the product, the supply chain is often fairly opaque. The medical marijuana supply chain has at the top the cultivator/growers. Whatever method they employ, they simply grow the crop and sell it. At the end are the dispensaries where the marijuana is sold for retail to patients with proper documentation from a licensed physician.
Numbers for Arkansas, Florida, North Dakota, Ohio, Pennsylvania, North Carolina and West Virginia are not available because MMJ was only legalized in 2016 and after.