The impact of cannabis sales on market growth

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We live in a society that values ​​instant satisfaction and convenience and consumers are willing to pay for them. This includes food delivery, grocery delivery, pharmacy delivery, ad-lib delivery – and cannabis delivery is no exception.

In fact, the COVID-19 pandemic has put demand for cannabis supplies on a fast lane that is now showing no signs of slowing. As a result, many patients and consumers across the country now have faster and more convenient access to cannabis products, and rising delivery sales show that people are enjoying it.

In fact, they really like it, and we’ll see more states adopt new delivery laws or expand their existing regulations in the near future.

States that allow cannabis deliveries

Currently, 15 states allow certain types of delivery of cannabis products, but only a few states require specific business licenses for delivery. These 15 states are:

• Arizona
• Arkansas
• California
• Colorado
• Florida
• Maine
• Maryland
• Massachusetts
• Michigan
• Nevada
• New Mexico
• new York
• Oregon
• Rhode Island
• Vermont

The Cannabiz Media License Database tracks well over 1,000 active licenses issued specifically to delivery companies in eight states, and more are added all the time as applications are submitted, licenses issued, and delivery companies become operational.

Models of cannabis dispensing common today

The common cannabis delivery models that states are following today are:

• Via a licensed dealer or pharmacy (no separate delivery license required)
• Through a separate supply license, if the company sources products from one or more licensed retailers or pharmacies
• With a separate delivery license that enables the company to source products directly from licensed breeders, manufacturers or producers
• Through a “gift” delivery system in Alaska and Washington, DC

Some states allow companies to participate in the cannabis industry by offering multiple delivery options. With delivery being one of the most cost-effective ways to get into the industry, delivery licenses have also become an important part of some states’ efforts to promote social justice.

Massachusetts is a great example of providing multiple approaches to delivery within a single state while addressing social and economic justice issues.

Two types of adult delivery licenses have been created in Massachusetts. The Marijuana Courier license allows license holders to charge a fee for deliveries from licensed retailers to customers. They cannot sell, process, store, or repackage cannabis products.

The Marijuana Delivery Operator license enables license holders to purchase wholesale products and deliver those products to customers from their own warehouses.

In 2020, applications for a marijuana courier license for equity applicants became available, and in May 2021, applications for marijuana supplier licenses for a minimum of three years were opened exclusively to social justice and economic empowerment workers. As of Friday, May 28, 2021, nearly 400 license applicants had been identified as eligible for these delivery licenses. Of these applications, nearly 300 were applicants for a social justice program and 122 were applicants for certified economic empowerment.

The coming threat from big business

The booming demand for supplies isn’t just limited to the cannabis industry, and big companies have noticed. For example, Uber has moved into grocery delivery and will soon be offering alcohol deliveries with the recent acquisition of Drizly. Cannabis seems like a natural next step.

In fact, in a recent interview with CNBC, Uber CEO Dara Khosrowshahi said, “When the road is clear for cannabis, when federal laws come into play, we will definitely be looking at this.”

Interest in cannabis shipments from outside the industry is unsurprising when looking at the data. In the first month after March 13, 2020, when the US rolled out the coronavirus lockdown, new signups for the Eaze delivery app rose nearly 60%. At the same time, first deliveries increased by 44% and order quantities increased by 15%.

Six months later, fast forward, and a survey by Ganja Goddess in September 2020 found that 52% of delivery service customers said they delivered cannabis for convenience.

Key insights into cannabis supply and market growth

We live in a convenience driven society and cannabis delivery meets that demand. You can expect more delivery companies and evolving state and local regulations related to delivery to emerge in the months and years ahead.

Of course, the Cannabiz Media team keeps track of all of these licenses in the Cannabiz Media License Database. Schedule a demo to see how you can connect with them!