Tuesday, April 20, 2021

The Massachusetts Cannabis Industry Is A Billion Dollar Marketplace


Cannabis business consulting firm Nucleus One recently released the findings of their February 2021 Massachusetts Adult-Use Marijuana Market Report. Nucleus-One tracks and analyzes data from the Cannabis Control Commission of Massachusetts.

February’s report heralded good news for the Commonwealth’s cannabis industry after a short-lived decline in sales in 2020. Since the decline, December and January 2021 saw unprecedented sales, with over 98 active retailers in the state. This growth is due to higher sales in product categories other than flower shares, which hit an all-time low in December.

The Commonwealth’s uptick isn’t confined to the retail space, as the largest Massachusetts operator (measured by active agents), NETA, and its parent company Parallel prepare to go public following a SPAC Agreement with Ceres Acquisition Corp. On the regulatory front, the CCC published new Medical and Adult Use Regulations in January, which will create a more hospitable environment for this thriving market. Also supportive of 2021’s promising growth are Northampton’s move to waive the community impact fee of 3% on gross sales for cannabis businesses and upcoming discussions about eliminating the vertical integration requirement for medical operators.

The last 10 years saw a dramatic increase in consumption and there is every reason to believe that the trend will continue. The number of final licenses granted is up 134 percent from January 2020, with January 2021 sales up 68 percent from the previous year. The number of employees in Massachusetts’ cannabis industry rose by 72 percent from last year, and operators harvested 48 percent more plants than a year earlier.

With 5 more states legal is now the time to invest in marijuana
Photo by Nikolay Ponomarenko/Getty Images

Licensing can be a long, laborious and expensive process for entrepreneurs to navigate, but on that front, too, there is encouraging news. The number of final licenses in the Commonwealth has more than doubled over the past year and a record 25 final licenses were granted in January. A total of 724 licenses have been approved and 389 provisionally approved across the Commonwealth, though marijuana is still banned or partially banned in over 120 communities in the state.

RELATED: These States Enter The Billion Dollar Cannabis Club For 2020

Boston in particular has the highest number of pending retailer licenses, with Brockton coming in a strong second. Smaller operators make up the majority of the 571 new active agents added by the Commonwealth, with all but 8 of the top 25 operators increasing their number of active agents compared to data from December

With daily sales averaging $2.8 million in January 2021, the Massachusetts adult-use market is now worth $1 billion annually, which is certainly correlated with the spike in the number of retail locations from 33 in December 2019 to 94 by December 2020. Sales benefited from a holiday shopping boost, and have sustained that momentum at around $30k per day per store well into 2021.

RELATED: Recreational Marijuana Sales Will Return To Massachusetts — But There’s A Catch

Despite changing buyer behavior, such as steep declines in daily sales on Thursdays and Fridays attributed in part to the pandemic and disrupted commuting routines, overall numbers remain strong with more than $1.26 billion worth of cannabis products sold through the adult use market between November 2018 and February 2021. With big operators like NETA going public, favorable regulations making the books, and a user-friendly licensing process welcoming more new businesses to the market, the future is bright for Massachusetts’ cannabis economy.

This article originally appeared on Green Market Report and has been reposted with permission.



Source link

Related Articles

Biden Is Actually Down with Federal Weed Legalization After All, Sen. Booker Says

Image via Despite recent evidence to the contrary, President Biden may indeed be on board with a new plan to end the federal prohibition...

4/20 2021: Your DIY Guide to Protest Under Lockdown

CANNABIS CULTURE – Liberty through street art.  This is an article about what I think pot activists should do to honor the now-traditional April...

Lawmakers Are Renewing Efforts to Legalize Medical Cannabis for Combat Veterans

Image via A coalition of Congressmembers have been working to grant military veterans the right to use medical cannabis for years now, but 2021...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

21,837FansLike
2,504FollowersFollow
0SubscribersSubscribe

Latest Articles

Biden Is Actually Down with Federal Weed Legalization After All, Sen. Booker Says

Image via Despite recent evidence to the contrary, President Biden may indeed be on board with a new plan to end the federal prohibition...

4/20 2021: Your DIY Guide to Protest Under Lockdown

CANNABIS CULTURE – Liberty through street art.  This is an article about what I think pot activists should do to honor the now-traditional April...

Lawmakers Are Renewing Efforts to Legalize Medical Cannabis for Combat Veterans

Image via A coalition of Congressmembers have been working to grant military veterans the right to use medical cannabis for years now, but 2021...

The Rookie’s Guide To Kush Weed

As a freshman in the cannabis world, there’s a high chance that the only times you’ve heard the word “kush” was in a...

7 Black-Owned Cannabis Brands to Support This 4/20

Recommendations on Black-owned cannabis brands to enjoy and support. It’s impossible to address the state of Black brands in cannabis without addressing the cruel...

The Worst Marijuana Strains of All-Time?

The cannabis markets in different locations are rich with options and different choices of cannabis strains for users to choose from. New hybrids...

Comprehensive Bill To Expand Access To Medical Cannabis In Public Schools Clears Colorado House

A bill that would expand access to medical cannabis in public schools in Colorado was passed by the state House of Representatives on...

The 420 Plant-a-Seed-a-Thon Challenge #420SeedChallenge

420 is around the corner and with the way things are going – it seems that it will be stifled by COVID for...

The Cannabis Industry Would Like You To Stop Using These Pot Slang Words

Many insiders believe “marijuana” is a term with racist roots, while others aren’t so high on calling it “weed.” But 4/20 will give...

Cannabis for Tremors – What is Working Right Now and What is Not?

Tremors are uncontrollable, unintentional movements that affect a limb or a part of it. It’s one of the most common movement disorders and...