Marijuana sales in America hit $ 1.4 billion in the past 90 days

With a total of $ 1.4 billion in taxable cannabis sales in the second quarter, California takes the lead as the state with the highest cannabis sales in the United States.

This wouldn’t come as a surprise to the majority, as California has always been at the forefront of the country’s cannabis industry.

From the first state to approve the medical use of marijuana in 1996 to some of the largest cannabis farms and pharmacies in the country.

US cannabis sales

The cannabis industry generates billions of dollars in revenue from states that have legalized either recreational cannabis or medicinal cannabis, or both.

Sales are somewhat restricted as the drug is still banned by federal law. However, this has not hindered the drug’s popularity among patients and adults in the country.

As more pro-cannabis laws pass, sales are increasing in every state.

The U.S. Department of Commerce places cannabis stores in a segment called other retail stores.

The latest figures from this segment show that from July onwards, cannabis pharmacies were able to increase sales by 3.5% single-handedly from June to July.

These pharmacies can no longer be described as “small”. All pharmacies across the country are doing more than well.

Overall retail sales lagged last quarter, but retail sales of cannabis continued to boom. This sale contributed immensely to the economy.

At the last count, 15 states have legalized recreational cannabis, while 35 states allow medical marijuana programs for licensed patients. Few of these states have distinguished themselves by rapidly building infrastructures and adopting additional guidelines to grow their cannabis industries.

Some of these states are California, Colorado, Michigan, Washington, Nevada, and Illinois.

The state of California has the highest cannabis revenues in the United States

The total tax revenue from cannabis sales in 2020 is over $ 800 million. California’s medicinal and recreational weed industry had total sales of up to $ 4 billion last year.

California has the largest legal cannabis market in the United States. Investors are flocking to the state in droves due to the amazing revenues that can be generated from the cannabis industry.

Despite a recreational marijuana sales market barely three years old, the state holds the record for the largest legal recreational cannabis market, surpassing Washington and Colorado. The booming sales are expected to increase further in the next few months.

In-depth look at cannabis sales in California

The California Department of Tax and Fee Administration (CDTFA) released reports that taxable cannabis sales in California rose 11.2%. Taxable cannabis sales rose to $ 1.4 billion in the second quarter.

This means that legal cannabis sales have increased 108% since the second quarter of 2019 and 24.4% since the second quarter of 2020.

The above numbers are amazing as they don’t include either medical marijuana sales or black market sales.

Medical marijuana sales in California are not government taxable and the black market industry has no traceable record for the CDTFA to monitor and report on.

Analysts believe that black market sales that are not on the charts are mostly equal to or exceed sales on the regulated market.

From the regulations that guide the legal recreational market, the government generates revenue from the consumption tax, cultivation tax, and cannabis sales tax levied by market players.

Other factors are contributing to the growth of the legal recreational cannabis market.

The size of the state

California has the third largest land mass in the United States. This makes it one of the most populous states in the country. Its land mass also makes it perfect for growing cannabis.

California grows the highest quality cannabis in the country, so it has to be sold a lot in and out of the state.

The Emerald Triangle, which sits between Mendocino County, Humboldt County, and Trinity County, produces around 1.7 million pounds of cannabis each year.

Cannabis culture

California residents, old and young, have shown high dominance of cannabis culture. In the 1960s, California was the global epicenter of cannabis culture in the states, with residents embracing the drug for its medicinal and recreational benefits. This culture has not waned and contributes to the high sales of cannabis within the state.

Tourist attraction

The state has a high rate of tourist visits each year. An average of 260 million tourists come to California every year.

Like Colorado, California is poised to kickstart cannabis tourism in the state.

These new tourists will experience the state’s entrenched cannabis culture as well as the legal use of drugs.

What to Expect

A study report authored by Wolf Ritcher found that retail sales of cannabis have a unique growth pattern that is seldom seen in other retail segments. About last July, taxable cannabis sales in the state were just over $ 2.6 billion, and now that number is up 48% to $ 5.1 billion.

The high taxation of products could be examined as it encourages black market players to continue producing products at reduced costs. Residents have also learned to work around this by buying medical marijuana products instead. However, despite the high taxes, thousands of people buy legal adult cannabis every day.

Bottom line

California is a classic example of how the country’s economy would grow once the marijuana industry was legalized nationwide.

Federal laws, when introduced, will position other states for more cultivation and sales. Perhaps one of these states can threaten the supremacy of the California cannabis market. It will also encourage the NAICS to create a segment for cannabis retail.

Until then, California will continue to be the envy of cannabis markets around the world, generating billions of dollars in retail sales annually. It will remain a cannabis powerhouse for a long time to come.

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