Legal weed in North America is expected to reach $22.6 billion in revenue in 2021. But many won’t be spending their money on marijuana the way they do today.
Recreational cannabis spending is expected to outpace medical marijuana sales for the first time in 2019, according to a comprehensive new report from Arcview Market Research.
While recreational consumers will be spending more than medical patients, they will also be paying more in taxes. Currently, recreational shoppers in Colorado can expect to pay between 15% and 20% more than medical patients do. The state places a 2.9% sales tax (plus local taxes) on both varieties of marijuana, but it waives the 10% state marijuana tax for patients. Often, dispensaries also offer big discounts for medical patients.
When California rolls outs its recreational market in 2018, the state will impose a 15% tax on sales of the drug, but only non-medical users will have to pay it.
While many patients, will continue to seek the discounts or lower prices offered by a medical market, the ease of recreational purchases will become more appealing to many. Currently, the medical industry limits patient access to “qualified” conditions, requires patients to register and in some states, limit the amount or types of medication a patient can purchase.
Many wil likely pursue recreational purchases, although the momentum to maintain a medical market will be largely based on interest in research, development and the quality of product provided to patients vs recreational consumers.
Source: Adult-use marijuana spending will outpace medical sales in 2019 – Business Insider
