- August 10, 2018
- Posted by: Westword
- Category: Economics
The cannabis industry has grown massively and seems unstoppably ascendant at the moment, thanks to the increasing number of states legalizing medical and recreational cannabis. This ‘green rush’ is creating different types of business opportunities available for entrepreneurs interested in this expanding niche. Opportunities created by legal cannabis include but are not limited to cannabis producers, processors, retailers, licensed distributors, edibles manufacturers, concentrate producer, delivery service, packaging, security service, lab analysis, app development, tech companies, marketing agencies, and industry-specific consulting.
Let’s look at how much money the legal cannabis market is currently generating to get an idea of the average profitability of the cannabis market.
How Profitable is the Cannabis Market?
Despite all the challenges and regulations, nearly 90% of operating dispensaries, wholesale cultivators, and infused products companies report that they are profitable. In 2016, people in North America spent an estimated $6.7 billion on legal cannabis and nearly $9 billion in 2017.
One in five Americans are using some form of legal cannabis and the numbers are expected to grow. More than a quarter of dispensaries generate annual revenues exceeding $1 million. Another 15 percent report annual revenues between $500,000 and $1 million. Well-established dispensaries often have thousands and even tens of thousands of loyal clients, tested products, professional packaging, and a dozen more employees. Such businesses report annual sales that climb as high as $10 million, while dispensaries located in remote areas bring in closer to $3 million. A fair share of dispensary owners also report taking in $500,000 or less in annual revenues with those in the low-end generating between $100,000 and $250,000 from their sales.
How Much You Make Depends on the Job
Basically, how much you can make in the market will depend on the type of job you choose. For instance, great grow masters can earn $100,000 annually, lab analysts can make between $75,000 and $125,000, while dispensary managers typically make more than $75,000 a year. Infused products companies lead all sectors of the industry, with 91% reporting that they at least break-even. Farmers in some states can hold multiple licenses, opening doors for larger farms.
As a whole, the industry is generating remarkably huge profits and more than 20 states are currently working on new cannabis laws, and this will mean an expanded industry. The market is expected to grow at a remarkable pace and will generate almost $23 billion by 2021, which is a 21% growth rate per year. If you want to get involved in the cannabis industry and open your own dispensary, contact dispensary consultants at the American Cannabis Company to learn more.