Brief Excerpt from Industry Overview Chapter:
Interest in the marijuana industry is soaring due to increased public acceptance and reduced regulation in US states as well as in countries around the world. The multibillion-dollar global industry is experiencing strong growth, though the newness of the market and variance in regulation across geographies creates major barriers to entry. The industry includes medical marijuana dispensaries and stores that sell marijuana for recreational use.
Demand is driven by demographics, public awareness of the marijuana plant's medicinal properties, and the desire for natural health treatments. Following decades of prohibition in the US, marijuana has gained greater public acceptance. Baby boomers with health conditions are driving medical marijuana sales, while recreational users include younger generations seeking a substitute to alcohol or other euphoric substances. Marijuana faces ongoing opposition due to health and addiction concerns, and the pros and cons of marijuana use remain widely debated.
PRODUCTS, OPERATIONS & TECHNOLOGY
Retail marijuana stores sell cannabis products to adults primarily for medical use (about 75% of industry revenue in North America), though recreational shops are increasing in number, according to ArcView Group. Products include different grades of dried plants and a variety of edibles, beverages, oils, tinctures, sublingual sprays, and topical products, as well as smoking or vaporization paraphernalia. Companies in this cash industry buy from marijuana growers and wholesalers, edible product manufacturers, and providers of real estate, security systems, and other support services.
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