California Cannabis Sales Continue to Rise
Cannabis sales in the state of California in the month of August are still strong despite the vaping crisis. In fact, most cannabis types performed better in 2019 than they did in 2018. The following graph from New Cannabis Ventures clearly shows sales growth for flower, pre-rolled joints, concentrates, and ingestibles.
This past August, sales for California’s licensed dispensaries and delivery services reached a combined $272.4 million, increasing almost three percent from July. Year-over-year sales for the month of August show an increase of 13 percent, and the combined year-to-date sales of nearly $2 billion indicate 24 percent growth compared to August 2018.via New Cannabis Ventures
We can expect to see a drop in the sales report via concentrates, over the next few months as a result of vaping related illnesses. There is no surprise that this category will take a huge hit. However, are likely to see increased sales of the flower as the conscious consumer will shift preferences.
Despite the numbers showing growth, some say that California’s revenues have fallen short. However, it seems that Gavin Newsom’s original projections were too strong.
California’s cannabis excise tax generated only $74.2 million in the second quarter of 2019, the state says, announcing numbers that are short of projections that were set months ago. It’s the latest sign that the country’s largest marijuana market has struggled to take off since sales of recreational pot became legal last year.via NPR
The health of the cannabis industry is going through a rough patch, but we haven’t seen a negative impact on the cannabis job market. In fact, we continue to witness communities demand that more cannabis businesses be opened.
As politicians work to restore order after the vaping crisis, we will hopefully see a decreased presence of illegal cannabis products; and more money-driven to the legal side. We’re hoping that quality operators like Kushy Punch will invest more in the legal infrastructure instead of illegal warehouses.
Illegal sellers outnumber legal and regulated businesses almost 3-to-1, according to a startling analysis of California cannabis sellers released this month. Some critics blame the website Weedmaps for letting thousands of rogue stores advertise. But cannabis regulators are cracking down. This week, they put publications, including Weedmaps, that advertise unlicensed marijuana businesses on notice that doing so is against state law.via NBC News
Despite the uphill battle ahead, we’re still seeing growth in the California cannabis market. We’re also seeing the demand rise on a global level.
Investors would have a hard time finding an industry with more impressive long-term growth potential than legal cannabis. After generating close to $11 billion in worldwide sales last year, some on Wall Street foresee anywhere from $50 billion on the low end to as much as $200 billion on the high end in global sales by the end of the upcoming decade.via Motley Fool
Not to mention the historical growth of the cannabis job market.
According to cannabis information hub Leafly’s 2019 Cannabis Jobs Count, cannabis directly employs more than 211,000 full-time workers in the U.S. Add indirect jobs and the total number of full-time workers dependent on the legal cannabis industry hits nearly 300,000via Forbes
With the California cannabis market still growing we expect to see a strong finish to 2019 despite the vaping ban. We expect to see growth in flower consumption and a steady job market.