The cannabis industry’s rapid evolution and new strategic partnerships with mainstream brands reveal a far larger possible market for legal marijuana than investors and analysts first anticipated, according to Cowen.
“Our broader, big picture view of cannabis goes beyond the adult use launch in Canada,” she wrote in a report this week. “Rather, we believe this is the first step toward the establishment of cannabis as a key functional ingredient touching multiple consumer categories with four key verticals: adult use, beauty and nutraceuticals, OTC pain and sleep, and pharmaceuticals.”
The 34 new banks that began providing financial services to cannabis businesses between February and March represents the single greatest monthly increase recorded in the new report.
In March 2017, licensed Colorado marijuana shops hauled in more than $131 million in sales; it’s the tenth month in a row sales have topped $100 million, and the sustained double-digit growth rate caught the attention of some analysts and economists contacted by The Cannabist.
Sales tax revenue generated for the state during March was $22.9 million, according to the Colorado Department of Revenue.
by the end of the year, that could add up to an industry boasting $1.6 billion in sales
“We’re surprised that sales continue to grow so quickly,”…“We are not surprised that almost all of the sales growth is in the retail marijuana space.”
“The draft regulations represent a starting point for the state to begin to clean up what has become a highly unruly multi-billion-dollar unlicensed industry that is not subject to any regulations at all whatsoever,” said attorney Aaron Herzberg, who runs Santa Ana-based CalCann Holdings.