We all know marijuana dispensaries are incredibly successful. Just go to Colorado and ask someone in the industry how things are going, and they'll tell you nothing but positive things. But just how good is the industry going? Well, according to a new report, dispensaries are just as profitable as Starbucks.
A new study, called "Cannabis Retail: The $23 Billion Opportunity" delved into the nitty gritty financials of the marijuana industry. And (spoiler alert) they were really good! In fact, the study found that dispensaries have the ability to turn a 12 percent profit margin after taxes, which is in line with some of the best retail companies in America, such as Starbucks. But it turns out that it's not coffee or Starbucks that marijuana should be compared to. Instead, we should look to Apple.
“This report shows that retail cannabis could be as big as the iPhone," said Troy Dayton, the CEO of Arcview Market Research, the company who wrote the new study. "It’s clearer than ever that there is a pot of gold at the end of the rainbow for those investors and operators who are willing to deal with the uncertainties and difficulties of current regulations."
The study also said that by 2021, the marijuana market in America will be worth around $23 billion, based on rates of legalization and growth in the industry. About $15 billion of that will be in the recreational market, while the other $8 billion will be in medical.
Arcview also said that marijuana dispensaries are creating a new market for specialty retailing that has largely been shut out since the growth and expansion of Big Box stores in the late 1990s.
“Cannabis stores are unlike anything the retail world has seen since big-box stores wiped out much of the specialty store business in the 1990s,” said Arcview Market Research Editor in Chief, Tom Adams. “And because of federal prohibition, publicly traded retail companies are just going to have to stand aside while entrepreneurs pursue this unique retail opportunity.”
So to sum it up, things are going pretty good in the marijuana business.
(h/t Press Herald)