Medical & Recreational Marijuana Stores in the US - Industry Market Research Report

Legal matter: Despite conflicting regulations, the industry is expected to continue its sky-high growth

Abstract

Medical & Recreational Marijuana Stores

The Medical and Recreational Marijuana Stores industry exhibits a low level of market share concentration, due to the fact that medical and recreational marijuana use is still not federally legal. As a result, industry operations remain highly fragmented, leaving most industry players to compete regionally within states that have passed necessary legislation. However, as more states pass laws regarding medical and recreational marijuana use, the industry landscape is expected to change moving forward.

Federal laws continue to impede company entrance

• Industry players can only operate in states that have legalized medical and recreational marijuana distribution. As a result, individuals seeking to enter the industry must navigate a variety of legal issues before beginning operations. This legislative barrier is more intense for recreational operators, as only 11 states have legalized this type of distribution, although this is expected to change moving forward.

Product quality becomes focal point for industry competition
• Due to the similarity of industry product offerings, price and quality remain the two largest factors for internal industry competition. In terms of quality, industry players can benefit from offering a wider variety of strands covering different levels of potency. As such, larger companies that are able to negotiate better contracts from suppliers can offer customers more favorable price points for industry products, thus attracting and maintaining customer bases.

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, Arizona, California, Colorado, Illinois, Maine, Massachusetts, Michigan, Montana, Nevada, New Jersey, Oregon, South Dakota, Washington and Vermont, along with Washington, DC.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.