Covid hasn't stopped the growth of the California cannabis market

The California cannabis market has continued to expand amid the COVID-19 pandemic, and legal sales are well on the way to exceed $ 6 billion in 2025, which is one-sixth of all legal cannabis sales in the United States, a leader said Analyst on Wednesday: The state market - the world's largest legal market - has benefited from a surge in demand during the pandemic as customers stock up on alcohol- and tobacco-like products, said Jessica Lukas, vice president of consumer insights at BDS Analytics, a cannabis company -Research company based in Boulder, Colorado.

The company found that legal spending on weed was $ 3.1 billion in the state and $ 8.7 billion in the illegal market last year. California also benefited from a good regulated market this year, Lukas said. It did not encounter distribution problems like those seen in other states like Nevada, which had to switch to a supply chain-only model amid the pandemic, or supply problems that plagued states like Illinois, which had only allowed recreational use from January, said Luke. Recreational marijuana use has been legal in California since January 1, 2018. "California, a very strong, legally mature marketplace, has had limited impact or has weakened the impact," Luke said Wednesday during a presentation of the annual virtual symposium on wine and weed.

Cannabis sales were up 90% from average daily sales on March 16 as consumers stocked up on stock orders when the shelter-in-place orders went into effect. That strong interest continued with a 60% increase on April 20 and a 29% increase on June 26, she said. The industry has also seen an increase in consumers using retail applications to make purchases. "Many of the top reasons people consume fit a COVID-19 response," said Lukas. "They are looking for cannabinoid-infected products that will help them relax or recover to relieve stress. The north coast is a major driving force in the cannabis industry as it is home to the Emerald Triangle - made up of the counties of Mendocino, Humboldt and Trinity, which are considered the main growing region in the country.

Meanwhile, Sonoma County has carved out a niche for itself as a manufacturing hub with companies like SPARC and CannaCraft. As the market has grown, other products such as edibles, beverages, lotions, and oils have come onto the market in addition to smoked cannabis products. "This is no longer an industry where people just smoke ... or just consume something edible. People are looking for different benefits through the different forms of product available," said Lukas. That has piqued the interest of alcoholic beverage manufacturers like Petaluma-based Lagunitas Brewing Co., which works with CannaCraft to offer its own cannabis-derived beverage product.

In Canada, where it's also legal, Constellation Brands Inc., Molson Coors and Anheuser-Busch InBev have all entered the cannabis beverage market for growth. BDS estimates that the cannabis beverage market will be worth $ 1.7 billion in 2024. The annual symposium, launched in 2016 by the Wine Industry Network to explore how legalizing recreational cannabis is affecting the California wine industry, was held online this year in response to the coronavirus pandemic.