State-level regulations are preventing the California cannabis industry from flourishing.
Since 2020, over 50 Californian states have implemented regulation to enable retail sales of adult use cannabis, however, Hirsh Jain at Ananda Strategy has highlighted that only 18 dispensaries have opened since.
Speaking to Green Market Report, Jain noted that at least 129 dispensaries should be open by now.
Speaking to the publication, Jain commented: “In those 50 cities that did move, the bureaucratic process at the state and local level has made it impossible for these stores to open. If these stores were open, as they should have been by now, then the California market would not be feeling the pain it is today.
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“Even if no other cities opened up, if we just got these stores open, which we anticipated when we passed these ordinances back in 2019 and 2020, then this would be an $8 billion market.”
Jain’s comments follow data released in March showing that California’s cannabis industry saw a decline in revenue for the first time since adult use was legalised in 2018, with sales down 8.3% compared to the previous year.
Jain highlighted to the publication that 40% of dispensaries are located in only seven cities, leading to high competition and has led to some retailers going out of business.
