Legal matter: Despite conflicting regulations, the industry will continue its high-sky growth

The Medical and Recreational Marijuana Stores industry, which includes stores that retail medical marijuana (by prescription only) and recreational marijuana, expanded dramatically over the five years to 2017. The 2016 election cycle, in particular, provided a boon for both medical and recreational cannabis retailers. Consequently, legalization of marijuana for medical and/or recreational purposes and the growing acceptance of medical marijuana provided operators and investors with unprecedented opportunities. There has been no shortage of demand in recent years, and the cannabis industry has become one of the fastest-growing in the United States. Over the five years to 2022, industry revenue is projected to continue its rapid rise...read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 12-17
29.2%
Forecast Growth 17-22
Profit
Employment
113,216
Businesses
9,545
Market Share of Companies
There are no companies with a dominant market share in this industry
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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 largely flourished under the Obama administration, its future remains hazy
  • Industry Report - Starting a New Business Chapter

    Federal regulationProspective medical marijuana store operators, and recreation marijuana store operators 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 during the current period. The omnibus spending bill signed by President Obama in December 2014 included historic provisions for medical marijuana. The...purchase to read more.

    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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    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 Alaska, California, Colorado, Maine, Massachusetts, Nevada, Oregon and Washington.

    Industry Products
  • Edible cannabis products
  • Flower products
  • Concentrates
  • Pre-rolled joints
  • All other products
  • Industry Activities
  • Retail edible cannabis products
  • Retail smokable indica cannabis products
  • Retail smokable sativa cannabis products
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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 forefront
  • Recreational marijuana facilitates boom
  • Changing attitudes and rising incomes spur new products
  • Regulation weighs on the industry
  • Chart: Revenue Growth

  • Industry Outlook
  • Recreational marijuana fuels industry expansion
  • Medical cannabis demand grows with aging population
  • Conventional 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

  • 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
  • Flower products
  • Concentrates
  • Edible cannabis products
  • Pre-rolled joints
  • All other 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
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other 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
    There are no major players in this industry. This report includes analysis of other companies.
    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
    Table: Industry Data for the Medical & Recreational Marijuana Stores Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Total recreation expenditure (2008-2022)

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

    IBISWorld’s Medical & Recreational Marijuana Stores Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    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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