It’s been a little over one year since the first recreational cannabis dispensaries opened in Massachusetts, and the same story holds true here in the Bay State: demand far outpaces supply. Cultivators and dispensaries were prepared and had adequate supplies when the medical marijuana market first opened. But as recreational dispensaries went online in 2019, these same suppliers and retailers were caught flatfooted and unable to keep up with customer demand.
Sustained growth rates in the demand for legal cannabis looks like a trend that’s set to stay on track in 2020 as more recreational dispensaries open in Boston, Brockton, Salem, and in other densely populated areas throughout the state. As travel times to get to these new dispensaries decrease, demand could soar to higher than anticipated levels, even after accounting for potential increases in demand being met on black market.
To cope with demand and ensure that medical customers’ needs are met, dispensaries are limiting the amounts of cannabis and cannabis-infused products that retail customers can purchase per visit to one ounce or less, per state law—further proof that demand has outstripped supply.
Other factors bottlenecking the cannabis supply chain include a lack of testing laboratories (there are currently only two licensed cannabis testing labs in the entire Commonwealth). All cannabis products sold in Massachusetts must by law be tested for potency as well as harmful substances including mold, pathogens, pesticides, bacteria, and yeast.
A vaping ban in the fall of 2019 further impacted already diminished supplies, as an estimated 20-30 percent of legal purchases in Massachusetts were sales of vape cartridges and other vape-related products and accessories. Some of these customers went to the black market to buy illegal vapes, e-cigarettes and vape cartridges, while others switched to legally purchasing flower and edibles, further straining supplies on the legal cannabis market.
Step 1: Evaluate your cannabis plan:
Next is Step 2: Getting buy-in from your potential host community is critical to your cannabis business’ success:
And last, Step 3: Create a winning application and become operational:
In cannabis, it only pays to plan ahead. Effective strategies and airtight plans will separate cannabis industry winners from losers, especially in untested, newer legal cannabis recreational and medical markets.
There is an urgent need for cannabis cultivators. Stratacann can help cannabis investors and entrepreneurs enter the legal cannabis cultivation space and get up and running with a targeted plan of action. Contact Stratacann today to start a conversation.
#cannabis, #cannabiscultivation, #buildingthebusiness, #cannabisbusiness, #cannabiz, #cannabisnews, #cannabiscommunity, #cannabisculture, #innovation, #smartgrowth
Questions? We’re here to help. Feel free to leave a comment below or contact us for more information.
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