All The Cannabis Industry Information You Should Know...

A 2017 market research report found that legal cannabis sales in the U.S. for 2016 totaled $5.86billion. With major medical and recreational markets going live this year, that number is expected to soar with the introduction of new customers.

Researchers tested some CBD products in the market and identified wrongful labeling. CBD products continue to gain in popularity, but the consumers are living in a constant uncertainty because they don’t know for sure what is the origin and content of the products they are buying.

The largest cultivator in Southern California known as Outco found that 38% of users and none users are interested in learning more about CBD oil and what it has to offer. This is good news because it is important for consumers to educate themselves properly on what they are purchasing. Even now, CBD is often not properly regulated. For this reason, many producers can import industrial CBD oils, commonly from Chinese industrial hemp that is cut into their products.

Despite growing competition, there are still plenty of opportunities for companies entering the cannabis market in the US. Most companies operating in the market remain profitable, and 18% of the industry players were considered very profitable in 2016, according to Marijuana Business Daily. The legalization of recreational marijuana in California beginning in 2018 should unleash further growth.

The growth of the industry attracts investment and new businesses and implies growing competitive pressure for companies already in the market and higher barriers to entry for new entrants.

Despite the increasing competition and increasing barriers to entry, the industry retains plentiful opportunities, particularly given the upcoming legalization of recreational cannabis in large markets such as California and Canada.

As more companies and investment funds enter the market, the barriers to entry for new businesses are increasing and startup costs are rising rapidly. In early 2016, about 70% of cannabis companies said they reached break-even or profitability in one year, while so far in 2017, that percentage has dropped to 55%, according to surveys conducted by Marijuana Business Daily.

1. Summary of the Cannabis Industry in USA

In mid 2017, the cannabis industry was the second largest cash crop in the U.S., after corn, and worth over $40 billion. Being the fastest growing industry in the United State, it has been recorded to be the largest cash crop and thus, an ineradicable part of the national economy.

Even till now, cannabis remains illegal in some states in the United States but the continuous federal prohibition hasn't hindered its growth to a more profitable one. In Washington D.C., 9 states and the District of Columbia now allow for recreational cannabis use and 30 states allow for medical use despite its unfriendly administration.

As the chart shows, the majority of respondents live in states where medical Cannabis, recreational Cannabis, or both, has been legalized. The survey question also included an option to provide the name of the state and whether it was legal for medical or recreational purposes. 406 respondents representing 36 states, plus Washington D.C. and Puerto Rico, chose to disclose if they lived in a legal state or not, as well as 354 naming the state in which they currently live. There were also respondents from other countries, including Canada, South Africa and Holland. Most respondents were from Colorado, with California being second, followed by Oregon.

However, the industry has been creating jobs and opportunities. Over 100,000 people are working around the cannabis plant and that number will keep growing. The industry employed 121,000 people in 2017 and the number of workers in that field could reach 292,000 by 2021 if the cannabis industry keeps growing overtime. Also, it was recorded that there are 9,397 active licenses for cannabis businesses in the U.S. which includes cultivators, manufacturers, retailers, dispensaries, distributors, deliverers and test labs.

In North America, the most prominent association incepted to cater for the emerging cannabis industry is the National Cannabis Industry Association which is focused on "advancing the interests of the legitimate and responsible cannabis industry". Other multiple trade organizations include The National Association of Cannabis Businesses (NACB), Cannabis Business Alliance (CBA) and Marijuana Business Association (MJBA).

California is already the largest state cannabis market in the United States, despite only having established medical marijuana laws. It was the first state to pass legal medical cannabis legislation in 1996. Since then, 24 additional states have followed suit.

Presently, there are 15 states that allow cannabidiol (CBD) only. This is in addition to the 28 states plus Washington DC that have legalized medical cannabis, believing the growing CBD market will exceed the estimations by Hemp Business Journal. CBD that is derived from hemp is legal to import and purchase in all 50 U.S. states, without a prescription. 

The CBD market has already been the target of industry leaders as there are already more than 800 CBD products in the US state of Washington alone, and there are businesses from all over the world selling cannabidoil from a variety of vendors - from consumer-based to medicinal. It’s a fact that products containing CBD have gained attention in the market for significant health benefits. Confirmations of its benefits are spreading through the United States, making CBD oil an increased demand to consumers.

About 84 CBD products bought online between the months of September and October of 2016 were tested and the results indicated that: 31% of the products were labeled in compliance with the regulations, 43% of the products were under labeled because they contained more CBD than what was informed on the label and 26% of the products were over labeled, meaning that they had less CBD than what was informed on the label. Any product that varied more than 10% of its CBD percentage was considered inaccurate. This information represents an alert to the emerging industry of CBD products and indicates that the state and federal regulation agencies should take a very rigid regimen in order to make the CBD market a trustful and safe place for consumers.

2. Market Size, Growth and Growth Rate of the Cannabis Industry in USA

The emerging Marijuana or Cannabis industry, being the United States largest cash crop took in nearly $7.97 billion in sales in 2017. Its sales reached $6.56 billion in 2016, representing 16% annual growth rate which shattered previous expectations about how quickly the cannabis industry could grow in the face of federal prohibition. 

The growth is buoyed by new states legalizing cannabis, and sales exceeding expectations in existing markets. Depending on legalization outcomes, the cannabis industry is expected to grow from $2 billion in 2014 to as much as $10.82 billion in 2018 and finally estimated to reach $24.07 billion in sales by 2025 as more states legalize cannabis for recreational use and existing markets mature.

3. Market Size, Growth and Growth Rate of the Recreational Cannabis Market in California

California is estimated to become one of the largest Cannabis markets in the world, as adult-use cannabis sales started in January, 2018. California is home to 40 million people and has 165 million visitors a year.

California’s cannabis market would be worth an estimated $6.46 billion by the year 2020 if the state were to legalize its adult use. The cannabis market research firms recently published the 2016 California Legal Cannabis Market State Profile, which projects that California’s legal cannabis market, currently valued at $2.76 billion, would pull in $1.6 billion in recreational sales in the first year of legalization and have an annual growth rate of 18.5 percent.

4. Market Size, Growth and Growth Rate of the CBD Market in California

The cannabidiol (CBD) market is a large part of the legal cannabis industry and CBD products are usually used for medical purposes. Bright field's data estimates that hemp CBD sales have already hit $170 million in 2016 and at a 55% compound annual growth rate over the next five years will cause the market to balloon to $1 billion to $2 billion by 2020, crossing the billion-dollar market. This makes it an important factor in the future growth of the cannabis market.

The estimate according to The Hemp Business Journal was CBD market will grow to a $2.1 Billion market in consumer sales by 2020 with $450 million of those sales coming from hemp-CBD based sources. That's a 700% increase, an astronomical jump in value compared to 2016 CBD market of $170 million.

In 2015, the market for consumer sales of hemp-derived CBD products was $90 million, plus another $112 million in cannabis-derived CBD products which were sold through dispensaries - bringing a total CBD market to $202 million last year. In terms of the CBD market size, almost $3 billion market by 2021 is estimated.

Reports reveal that hemp-derived CBD products generated $170 million in revenue in 2016. An estimated 55% compound annual growth rate will cause the market to balloon to $1 billion to $2 billion by 2020, making it an important factor in the future growth of the cannabis market.

5. Market Trends in the Cannabis Industry in the USA

The cannabis trends this year, 2018 that will most contribute to the growth of the cannabis industry in the year and beyond include:

1. Replacing Alcohol with Marijuana

With its higher popularity and more states legalizing recreational marijuana use, the landscape of America’s leisure activities is set to shift, as consumers start to turn to cannabis as their recreational substance of choice. Findings in a 2014 study published in Alcohol and Alcoholism suggested that cannabis is being used as a substitute for alcohol.

In a survey from last year, it was found that consumers nationwide are now spending more on legal cannabis than they are on alcohol. The typical male customer spends about $647 annually on cannabis products, compared to an average of $645 a year on alcohol, based on the report.

However, beer sales have declined in states where recreational cannabis is legal. The researchers concluded that total beer sales have declined by 2% across three legal cannabis states (Colorado, Washington, and Oregon). Also, it was found that 27% of beer drinkers in the U.S. said they have switched to legal cannabis or switch if cannabis were legal where they live.

About 51% of millennial cannabis users are choosing marijuana instead of alcohol. If this younger generation keeps choosing cannabis over alcohol, it could hurt the alcohol industry’s bottom line and reshape America’s social scene.

This trend of cannabis overtaking appears to continue and this bodes well for a growing cannabis industry moving forward. Cannabis has been found to be by far the safest drug compared to alcohol, cigarettes, and other popular substances, building on its case as the better alternative.

2. Cannabidiol (CBD)

CBD or cannabidiol being one of more than 100 cannabinoids found in cannabis is not psychoactive unlike the well-known psychoactive cannabinoid tetrahydrocannabinol (THC). This therefore provides benefits for users without getting them high.

For decades, CBD had been selectively bred out of cannabis plant in favor of euphoric THC. However, there has been a shift in recent years towards a more balanced ratio of CBD to THC in many medical cannabis products. In fact, Californians with medical cannabis recommendations are now opting more and more for CBD dominant products.

3. Smaller Serving Sizes

There are now 8 states with recreational cannabis law in the U.S. This opens access to cannabis products to millions of potential customers who have never used cannabis or haven’t used it in many years.

Due to this influx of beginner consumers to these newly legal cannabis market regulations in several of these states, limit the serving size of cannabis products like edibles and tinctures to ensure that first time users are protected from an uncomfortable experience.

4. Using Cannabinoids (CBD) in Healthcare

Cannabis will also take a more prominent role in the healthcare industry this year as medical cannabis still outspend recreational users by 3:1, demonstrating the effectiveness that many patients see when using medical cannabis. 

Increased enrollment and sales in state medical cannabis last year hint toward continued growth in the future as:

• Doctors and patients registered with Florida’s medical cannabis program increased in 2016.
• New Mexico’s medical cannabis program ballooned over a year’s time, growing by 84 % and now has more than 40,000 registered patients.
• Patients in Louisiana may be able to purchase medical cannabis by the middle of 2018 and similarly, patients in North Dakota can tentatively expect to be able to legally purchase cannabis this coming spring.

If medical cannabis were legal in all 50 U.S. states, it could cut into the pharmaceutical industry by $4 billion annually. Additionally, some companies are developing cannabis-based pharmaceutical drugs, further expanding the role of cannabinoids in healthcare.

Market analysts project that the U.S. medical cannabis market will be valued at $19.48 billion by 2024, meaning the growth trends listed above are likely to further increase in 2018.

5. Cannabis Education

The University of California at Davis, City College of San Francisco, and Sonoma State University all announced in 2017 that they would be offering cannabis-related college courses in future semesters. Also, The University of California, Irvine, is developing an interdisciplinary research center that will investigate cannabis, including its medicinal potential and impacts on the environment, business and culture.

Senior residents from a retirement community in Washington took a field trip this past year to a cannabis retailer for an educational seminar on the basics of medical cannabis. As the cannabis industry continues to expand, the need for over all cannabis education for professionals and consumers alike is sure to increase as well.

6. Increased Access in the USA

About 8 states have already passed recreational cannabis laws, and another 27 have passed comprehensive medical cannabis programs. By the end of this year, there should be an increase in the number of legal cannabis states in the U.S. Whether by ballot initiatives or through state legislatures, the following states are all expected to pursue some form of cannabis legalization this 2018.

Recreational

• Vermont
• New Jersey
• Michigan
• Delaware
• Rhode Island
• Connecticut
• Ohio
• Massachusetts
• Nevada

Medical

• Arizona
• Arkansas
• Connecticut
• Delaware
• Florida
• Hawaii
• Illinois
• Maryland
• Michigan
• Minnesota
• Montana
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Dakota
• Ohio
• Pennsylvania
• Rhode Island
• West Virginia

6. Market Trends in the Recreational Cannabis Market in California 

With cannabis advancing in both the medical and recreational markets, those hoping to enter into the cannabis market are looking to increase their knowledge and skills surrounding the cannabis industry and California is currently leading the way in cannabis education.

Also, consumers are educating themselves with cannabis classes and tours that give them the opportunity to learn about the differences between using cannabis medicinally and recreationally, about the various methods of cannabis consumption, and the varying effects produced by different strains.

California have set recreational cannabis serving size limits for edibles at 10 mg of tetrahydrocannabinol (THC) and total mg per package at 100. This is a major shift for some edible manufacturers who had previously sold edibles with up to 1000 mg of THC or more. This step towards smaller doses will make the cannabis industry more accessible to new or less experienced users.

7. Market Opportunities

1. Cannabis market presents economic growth opportunities
2. Cannabis market is set to create various job opportunities such as:

• Cannabis Producers
• Cannabis Processors
• Cannabis Retailers
• Licensed Distributors
• Edibles Sellers
• Beauty Products Producer
• Concentrate Producer
• Accessory Maker
• Delivery Service Personnel
• Industry-Specific Consulting
• Packaging Personnel
• Specialty Lodging
• Weed Florist
• Event Planner
• App Developer
• Social Network Founder
• Software Developer
• Security Service
• Reviewer
• Tour Guide

8. Current Market Challenges of the Cannabis Business in USA

1. Legal Hazards and Political Agendas

One thing that could potentially hinder cannabis business growth across the U.S. is that the U.S. Attorney General, Jeff Sessions and his Department of Justice have the power to go after recreational businesses if they choose. Recent reports that the U.S. Attorney General has rescinded the Cole Memo, Obama-era protections for medical cannabis businesses, have the cannabis industry on alert.

In January 4, 2018, the Attorney General, a long time opponent of legalization gave federal prosecutors the green light to enforce federal cannabis laws in states where cannabis has been legalized in some form. He rescinded Obama-era memos that assured Cannabis businesses that they would not be subjected to federal prosecution if they followed state law. However, this amendment will expose state legal cannabis business owners, employees, and customers to the risk of prosecution. This fear over legal action may keep entrepreneurs and investors alike away from the cannabis industry

Restriction on Cannabis Marketing and Promotion (Advertising)

Despite being legal in several states, most online networks, social media sites, broadcasters and print publications enforce some kind of ban on cannabis adverts.

Also, states with legalized cannabis restrict adverts such as preventing businesses from running commercials or buying billboard space where children may see it

3. Banking

During the Obama administration, several guidelines relaxed to allow banks and credit unions to serve legal cannabis businesses.

Financial institutions were reluctant to serve cannabis businesses in that there were:

• No clear protections against federal criminal charges.
• Complicated financial crime enforcement network (FinCEN) guidelines for how banks interact with cannabis businesses.
• Expensive federal guidelines to implement as most cannabis businesses must pay a financial premium just to get a bank account. 

Statistics on the Usage of Cannabis in USA

More than 1.2 million people already use medical marijuana for a wide variety of medical problems, from cancer to epilepsy to depression. If you’re not sure how the industry is shifting, consider these statistics:

• $7.1 billion is the estimated size of the legal U.S. cannabis industry (both medical and recreational) in 2016, representing a boost of more than 25% over the year 2015. This substantial increase is linked to massive growth in Colorado, Washington, Oregon and other states expected to approve both medical and recreational use.
• 89% of Americans support the legalization of cannabis for medical treatment if prescribed by a doctor. In 2011, 74% of them did. Attitudes toward cannabis continue to shift, with the public becoming accepting toward cannabis use every single year.
• 29 states (including Washington D.C. and Puerto Rico) have already legalized medical cannabis and voters in 4 states approved measures to legalize recreational cannabis last year alone. Broadening acceptance of recreational cannabis have pushed a total of 8 states to legalize adult use, and efforts are already underway for a 2018 ballot initiative in Michigan.
• $1.3 billion represents recreational and medical cannabis sales in Colorado in 2016 alone. Meanwhile, Washington’s 2016 recreational sales of $696 million were nearly double from the year prior. Tax revenue from states where recreational cannabis is legal is already being used to fund education, improve infrastructure, and feed the homeless.
• $688 million is the estimated size of the 2016 hemp market, including CBD products ($130 million), foods ($129.3 million), and personal care products ($163 million). This marks an estimated 20% increase over 2015, and doesn’t even include sales data from big box retailers, which could more than double the estimate.
• According to a survey, 69% of physicians support nationwide legalization of medical cannabis. As acceptance by the medical community snowballs, physicians are petitioning to open quality testing labs, cannabis clinics, and other businesses.
• According to the United Nations, 183 million people used marijuana during 2014, making it the most commonly used drug globally. This counted for 3.8% of the global population. Over 94 million people in the U.S. have self-reported using cannabis at least once.
• 31 states have passed legislation allowing certain farmers to legally grow hemp in 2017. At least 16 states have legalized hemp for commercial purposes, and 20 have passed laws allowing research and pilot programs.
• 16 states with controversial laws allow CBD oil from cannabis, with low THC. These laws do provide limited access to CBD in jurisdictions that are highly unlikely to legalize medical cannabis. However, they overlook the fact that CBD from hemp is already available in all 50 states.

Statistics of Cities with Legal Use of Cannabis Products in USA

In 2016, a landmark year for cannabis legalization in the U.S., the average medical and adult use vote was 62% and 53% respectively with legalization for adult use in Arizona, California, Maino, Massachusetts and Nevada while medical use was legalized in Arkansas, Florida, Montana and North Dakota.

Statistics of Retail Cannabis Tax Revenue in the USA

2020 Projection for New Job Creation in the USA Cannabis Industry

SECTION THREE: INDUSTRY ANALYSIS

1. PESTLE Analysis of Cannabis Industry in USA
2. Political

• International trade agreements
• Reduced costs
• Assistance provided
• Governmental support
• Positive tax policy
• Experienced political environment

Economic

• Government expenditures
• Stable economy
• Sustainable growth rates
• Taxes
• Competitive market
• Market size
• High productivity

Social

• Young population
• Growing economy
• New markets

Technological

• Mobile technology
• Development risks
• Technological problems
• Government regulations
• Technological scale effects

Legal

• Mobile technology
• Development risks
• Technological problems
• Government regulations
• Technological scale effects

Environmental

• Weather condition

1. Barriers to Entry for Startup Cannabis Business in USA

• A difficult and time consuming license application process
• High application fees
• An unreasonably short application window
• High minimum funding requirements
• Increasing competition 

Investors entering the Cannabis market are confronted with increasing competition. According to Marijuana Business Daily, it was estimated that there were 21,000–33,000 cannabis businesses in the US in 2016.

The barriers to entry for new businesses are increasing and startup costs are rising rapidly as more companies and investment funds enter the market. In early 2016, about 70% of cannabis companies said they reached break-even or profitability in one year, while so far in 2017, that percentage has dropped to 55%, according to surveys conducted by Marijuana Business Daily.

High compliance costs have also contributed to the consolidation of the industry in Colorado, as many smaller operations face difficulty in properly complying with the state’s complex regulations governing the legal cannabis sector.

• Mainstreaming an Industry 

California marijuana has apps, wealthy investors and companies that specialize in packaging and branding. But even now it lacks some key resources: For example, many banks won't serve cannabis businesses while the drug remains illegal at the federal level.

Proposition 64 allows California to start licensing sellers of recreational cannabis on Jan. 1, 2018. But because cannabis remains illegal at the federal level, it can't be transported across state lines, meaning that its growth will be limited to California alone.

• Local/State Regulations 

Investors need to understand that any sort of interest in a cannabis business is also very strictly regulated since there are serious barriers to entry (as both a debt and an equity investor) for those seeking to have a financial interest in a licensed business that ‘touches the plant’ (generally limited to cultivators, processors, retail outlets, and testing companies). Ancillary businesses present fewer ownership impediments, but are far from free of regulation. Thus, it is essential to ensure that any investment complies with the applicable regulations, both state and local government (cities, towns, counties), as many so-called cannabusiness investment advisors unwisely provide and encourage investment opportunities without adequate consideration of the state/local regulations governing the same.

SWOT Analysis for the Cannabis Businesses in USA

Strengths

• Creates cannabis tourism
• Cannabis can help or temporarily cure patients with certain diseases
• Legal cannabis is an estimated $70-100 billion industry
• Cannabis is known to elevate dopamine levels in one’s brain which can create a euphoric feeling, thereby keeping tourists or local residents happier
• In California, the weather condition is ideal for cultivating cannabis outside
• Diversification of green house cultivation and outdoor cultivation

Weaknesses

• Legal issues
• Tourists can be apposed to the drug and recent legalization, not wanting to travel to places where it is illegal
• High energy consumption
• Cannabis is known to cause lack in motivation and short term memory loss. If people use it too often, they may be affected.

Opportunities

• Cannabis festivals and events can be held legally at resorts
• Global market
• High growth industry
• Legalization of adult use in some states brought about various job opportunities
• Ski resorts building outdoor smoking huts for cannabis users, separate from designated tobacco smoking areas makes users and non users more comfortable as well as making the law a little more acceptable for residents and tourists

Threats

• Cannabis is known as the gateway drug, and if more people begin to smoke weed at an earlier age, there is a higher risk of bad addiction to other drugs
• Established direct competitors in the market
• A significant drop in wholesale pricing
• Possible California law changing
• Enforcement of federal law, uncertainty with president election
• Construction/ License delay

1. California Regulations on the Usage of Cannabis
2. Legal Adult-Use Activities

HEALTH AND SAFETY CODE, HSC (https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=11362.1.&lawCode=HS)

Under Adult Use of Marijuana Act (AUMA), it shall be lawful under state and local law and shall not be a violation of state or local law, for persons 21 years of age or older to:

• Possess process, transport, purchase, obtain, or give away to persons 21 years of age or older without any compensation whatsoever, not more than 28.5 grams of cannabis not in the form of concentrated cannabis.
• Possess, process, transport, purchase, obtain, or give away to persons 21 years of age or older without any compensation whatsoever, not more than eight grams of cannabis in the form of concentrated cannabis, including as contained in cannabis products.
• Possess plant, cultivate, harvest, dry, or process not more than six living cannabis plants and possess the cannabis produced by the plants.
• Smoke or ingest cannabis or cannabis products.
• Possess, transport, purchase, obtain, use, manufacture, or give away cannabis accessories to persons 21 years of age or older without any compensation whatsoever.

Prohibited Activities

Under AUMA, Cannabis users may NOT: (https://www.canorml.org/california_cannabis_laws)

• Smoke, vaporize or ingest cannabis or cannabis products in any public place.

Exception: local governments may permit on-site consumption at state-licensed premises in their jurisdiction.

• Smoke or vaporize cannabis in any non-smoking area or within 1,000 feet of a school, day care or youth center while children are present, except privately at a residence.
• Consume cannabis or possess an "open container" of cannabis while driving or riding a passenger in any motor vehicle, boat, or airplane.

Exception: consumption by passengers may be permitted in commercial vehicles specifically licensed for such purposes without children present.

Note: Open containers are defined to mean any receptacle containing cannabis or cannabis products that has been opened or has a seal broken, or loose cannabis flower not in a container, except when in the trunk of the vehicle. 

• Possess or use cannabis on the grounds of a school, day care or youth center while children are present.
• Manufacture concentrated cannabis with a volatile solvent (except for state-licensed manufacturers). Volatile solvents include explosive chemicals like butane butnotethyl alcohol.

1. Other Restrictions (https://www.canorml.org/california_cannabis_laws)

AUMA does not repeal, affect or preempt:

• The rights of employers to maintain a drug and alcohol-free workplace, or to have policies forbidding use of cannabis by employees.
• The ability of landlords and other private parties from prohibiting or restricting use of cannabis on their privately owned property.
• The ability of government agencies to prohibit or restrict use of cannabis within a building they own or occupy

SECTION FOUR: NICHE MARKET ANALYSIS

Cannabis businesses in California

A variety of cannabis products open to consumers includes: 

• Flowers: These are what most people think of when referring to cannabis. The dried flowers from the cannabis plant are most commonly smoked, either in a pipe or a joint.
• Pre-rolls: Ground up flowers that are rolled into an easily-smokable cone. Otherwise referred to as joints, pre-rolls are convenient solutions for people who enjoy smoking flowers.
• Edibles: Cannabis infused edibles which provide relief by delivering THC, CBD, and other cannabinoids to the metabolism. Edibles come in a variety of flavors and doses, and range from tinctures to sweet and savory food products.
• Concentrates: High-potency oils and waxes made from distilled cannabis. They are most commonly vaporized for immediate strong relief.
• Vaporizer cartridges: Are like pre-rolls for concentrates. Cannabis manufacturers pre-fill disposable cartridges with concentrates which can then be vaporized with a variety of battery powered devices.
• Others: Includes tropicals, tinctures, capsules and dabbing
• In 2016, the growth in concentrates and pre-roll sales are eroding flower’s share of the market as represented below.

SECTION FIVE: TARGET MARKET ANALYSIS

Demographics of Californian Consumers Interested in Recreational Cannabis

According to the 2017 survey of Californians by Enlucem, the target market that is ready to use cannabis recreationally after its legalization can be characterized by:

• Age 
• Gender
• Marital status
• Race
• Household income

https://www.businesswire.com/news/home/20170314005029/en/Enlucem-Releases-Findings-Calif.-Consumer-Cannabis-Study

Based on this, it was reported that:

• About 7 in 10 of the 21 years and above Californians are willing to use recreational cannabis. While 39% of Californians already use cannabis, another 44% are non-users interested in trying it now that it's recreationally legal.
• Result of the survey carried out on 800 Californians indicates that the market potential for medical cannabis and other forms of cannabis product is staggering and ranges between 15 million 20 million adults over 21 years of age.
• 83% of California residents are willing to try or use Cannabis with 54% females of 40years and below and have income over $90,000 per annum.
• Californians medical consumption of cannabis is owned to the fact that consumer's top health issues it can alleviate include pain (58%), stress (54%) and insomnia (49%). In view of that, the large majority of respondents use or plan to use medical cannabis, while a smaller group will use cannabis recreationally.
• Cannabis brand awareness remains very low as 49% have no idea. Most consumers are interested in edible (62%) and topical products (44%), though heavy users (use daily or almost every day) still prefer smoking (75%).

I hope you found this information valuable! My name is Steven Brown, I put together this market research report and have a great understanding of the cannabis & CBD market place. I have background in developing brands, driving foot traffic to retail stores using digital & traditional marketing. Contact me if you want to increase brand awareness or sales in your cannabis business 619-251-5703.

Sincerely,

Steven Brown