Overview

Half-baked: Conflicting regulations add uncertainty to industry's recent sky-high growth

IBISWorld’s Industry Market Report on Medical & Recreational Marijuana Stores is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$7bn
Annual Growth
11-16
32.1%
Annual Growth
16-21
Profit
Employment
87,813
Business
6,405

Industry Threats & Opportunities

  • Growing acceptance of medical marijuana is providing operators with unprecedented opportunities
  • Legal sale of recreational marijuana has spurred the industry’s more recent astronomical growth
  • Although the industry has largely flourished under the Obama administration, its future remains hazy

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    Industry Analysis & Industry Trends

    The Medical and Recreational Marijuana Stores industry has experienced exponential growth over the past five years, thanks to the increasing acceptance of medical marijuana and the introduction of legal recreational cannabis sales in Colorado and Washington state. Nevertheless, marijuana's continued classification as an illicit substance under federal law has contributed to significant uncertainty for industry operators. Still, demographic factors that have led to a rise in chronic illness will continue to drive demand for medical cannabis, as will the expected relaxation of regulations across several additional states...

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    Industry Report - Starting a New Business Chapter

    Federal regulation

    Prospective medical marijuana store operators, and recreation marijuana store operators in Colorado and Washington, must navigate a variety of legal issues before beginning operation. The classification of marijuana as a Schedule I controlled substance and the possibility of federal prosecution poses a significant barrier to entry, as the Drug Enforcement Administration has the requisite power to close dispensaries and seize their cannabis products. Recent favorable policy stances from the federal government on this matter caused a large number of operators to enter the industry over the current period. The omnibus spending bill signed by President Obama in December 2014 included historic provisions for medical marijuana. The..

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    Additional Insights for the Medical & Recreational Marijuana Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Medical & Recreational Marijuana Stores Industry are

  • Ability to attract community support
  • Understanding government policies and their implications
  • Fast adjustments to changing regulations
  • IBISWorld analysts also discuss how external factors such as Regulation and Per capita disposable income in the Medical & Recreational Marijuana Stores industry impact industry performance..

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    Look under the hood?

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    Industry Products

    What is the Medical & Recreational Marijuana Stores Industry?

    This industry includes stores that retail medical marijuana (by prescription only) and recreational marijuana. However, the legal sale of recreational marijuana is currently limited to the states of Colorado and Washington.

    Industry Products
    Edible cannabis products
    Smokable indica cannabis products
    Smokable sativa cannabis products
    Industry Activities
    Retail edible cannabis products
    Retail smokable indica cannabis products
    Retail smokable sativa cannabis products

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Regulation
  • Per capita disposable income
  • Number of adults aged 50 and older
  • External competition

  • Current Performance
    Medical marijuana at the forefrontDemographic boost for medical cannabisRecreational marijuana facilitates boomChanging attitudes and rising incomes spur new productsRegulation weighs on the industry
  • Chart: Revenue Growth

  • Industry Outlook
    Recreational marijuana fuels industry expansionMedical cannabis demand grows with aging populationConventional healthcare threatens the industry
  • Table: Medical & Recreational Marijuana Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Medical & Recreational Marijuana Stores Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Electric Power Transmission
  • Heating & Air Conditioning Equipment Manufacturing
  • Lighting & Bulb Manufacturing
  • Major Household Appliance Manufacturing

  • Products & Services
  • Edible cannabis products
  • Smokable indica cannabis products
  • Smokable sativa cannabis products
  • Chart: Medical & Recreational Marijuana Stores Industry Products and Services Segmentation

  • Demand Determinants
  • Government regulation
  • Income and demographics

  • Major Markets
  • Medical marijuana patients with severe pain
  • Recreational marijuana customers
  • Medical marijuana patients with muscle spasms
  • Medical marijuana patients with severe nausea
  • Medical marijuana patients with cancer
  • Medical marijuana patients with other symptoms
  • Medical marijuana patients with seizures
  • Chart: Major Market Segmentation for the Medical & Recreational Marijuana Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Medical & Recreational Marijuana Stores

  • Basis of Competition
  • Internal competition
  • External completion

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Medical & Recreational Marijuana Stores Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Medical & Recreational Marijuana Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Medical & Recreational Marijuana Stores Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Number of adults aged 50 and older (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Cannabis
  • The plant from which medical marijuana is harvested from.
  • Dispenary
  • Designated medical marijuana retail stores
  • Edibles
  • Edible cannabis products, often in the form of baked goods or candies
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Medical & Recreational Marijuana Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Medical & Recreational Marijuana Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Medical & Recreational Marijuana Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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