Medical Cannabis Spending Could Double in the Future

A new study in Phoenix, Arizona shows that medical marijuana spending could double in a matter of four years if the Trump presidency will not interfere with it. According to ArcView Market Research and the New Frontier Data, retail sales by the end of 2016 were pegged at $367 million. However, the figures are expected to reach about $681 by 2020. So, what accounts for the increased spending on medical marijuana? The authors believe that the price of medical weed is certainly going to drop significantly in the next few years. Looking at it from another perspective, there will be more marijuana bought for each dollar spent. The marijuana delivery service operators who were interviewed in the study stated that they have experienced a decrease in the wholesale prices from over $3500 per pound, reaching a low of $1800 in a number of cases. Further decline in prices is also anticipated. This has been fueled by the continued legalization wave that has created a free and fair market for simple competition. For instance, the Arizona state Department of Health Services in recent times gave license for 31 new marijuana dispensaries to start up next year on top of 98 others that have already been given out. 

Currently, there is recreational cannabis in Colorado and voters in California passed their own measure for recreational use of marijuana amongst adults. The diversion of products from the adjacent adult use markets will definitely apply a downward pressure on the retailing prices as the dispensaries endeavor to remain highly competitive against the black market. As the lower prices continue to be of huge benefit to the patients, there will be increased problems on top of the already existing financial challenges being experienced by operators in the market which is becoming highly competitive by the day. According to this research, some dispensaries in Arizona, which were relying on the approval of Proposition 205 by voters to generate more traffic, may end up closing up their businesses. This report was also written bearing the issue of investors in mind. These two research companies have been involved in professional analyses of medical cannabis markets cutting across the United States and seek to help them make a decision on whether to – and – how to put their finances into not only the dispensaries but also the auxiliary industries ranging from construction to security to warehouse.

One of the New Frontier Data lead researchers, John Kagia said that even with the mounting competition in the market and the failure to pass Proposition 205, there is no doubt that the medical cannabis market will keep on expanding to even provide marijuana for sale online. In a simple perspective, there will be an increased number of individuals who want marijuana. With time, the overall population will get familiar with medical pot where some of the new medical marijuana users may have already taken the substance illegally. From there, people will start to explore options and consider using the drug on medical grounds. Then there is another group of people who don’t have any history of marijuana use. However, due to the prevailing conditions that they are going through, they will get introduced to weed through their physicians and then will finally consider making use of it for the first time on medical circles. The researchers expect doctors to have a change of attitude especially among those who have been reluctant to recommend marijuana as a good substance for ailing patients. Previously, doctors have frustrated these efforts but they will soon reconsider their stand as more marijuana reforms continue to take effect.

There are some doctors who have already seen the benefits of marijuana and these ones will be very useful in spreading the news. Patients who have gotten relief from debilitating health conditions will also count a lot in advancing the use of medical marijuana among the masses. At the end of the day, there will be increased willingness by doctors to give recommendations for marijuana use amongst ailing patients and hence increase the customer base.  The only big uncertainty is the new Trump administration coming into office. As of now, weed remains a crime under the federal government. Under Obama’s administration, the Department of Justice took a position not to go after dealers and those in possession of legal marijuana through well established medical cannabis laws.

Actually, the feds have successfully taken a similar hands-off strategy towards the recreational weed sales that are already taking place in a number of states. President-elect Trump on the other hand nominated Senator Sessions as his attorney general. Sessions has been very critical of marijuana laws and a supporter of federal laws concerning marijuana. All the same, Kagia said that those already operating in the marijuana industry need not to worry. This is especially because Trump has more pressing issues on immigration and economic policies. Again, some of Trump supporters are strong advocates for marijuana and therefore, a crackdown on weed will give Trump needless stress.