III. Industry Analysis
The outlook for the Dispensary industry is overwhelmingly positive, with the industry expected to achieve record breaking revenues this year.
The industry will continue to benefit from increasingly favorable attitudes toward medical marijuana treatments, and the growth of legal recreational marijuana sales. Sales are expected to continue to explode, especially in the states that legalized recreational marijuana. This includes the industry’s largest market, California, which leads the country in cannabis expenditure.
In particular, an increase in per capita disposable income is projected to drive demand for industry products. Although medicinal products are essential for health and therefore less susceptible to fluctuations in consumer expenditure, the unconventional nature of the industry’s products still make them subject to changes in disposable income. Nevertheless, since consumers pay for industry products out-of-pocket, growth in disposable income will help boost demand. Additionally, dispensaries will likely further expand their offerings of edible marijuana products, which will likely be a major growth segment for industry operators moving forward.