Industry Analysis & Industry Trends
The Medical Marijuana Stores industry has experienced exponential growth over the past five years, thanks to favorable state legislation legalizing the use and sale of cannabis products, coupled with an increasing acceptance and legitimacy toward applying these products for medical use. Nevertheless, the industry has also been hampered by the federal classification of marijuana as an illegal substance and the subsequent regulations that apply to such substances. Over the next five years, industry revenue will continue to increase; however, the industry will remain at risk until the federal government definitively alters its position on the legality of medical marijuana.... purchase to read more
Industry Report - Industry Investment Chapter
The Medical Marijuana Stores industry has a low level of capital intensity. IBISWorld estimates that for every $1.00 spent on labor in 2014, industry operators allocated just $0.10 toward the purchase of capital. This figure has remained relatively unchanged during the five years to 2014, a trend that is expected to hold during the next five years.
The provision of industry services is relatively low-tech. Because industry operators are involved in the retail business, they must invest in typical equipment such as computers and software, as well as registers, in order to sell cannabis. More specific to industry services, operators must invest in temperature and humidity control systems to ensure that they are able to maintain the quality of their stock... purchase to read more