The State of the Market 2023: Cannabis Edition
Spacesaver dispenses the goods on a growing market.
Each year, more states are continuing to pass legislations legalizing medical and recreational marijuana use for their residents. To date, 21 states have legalized recreational use and 37 have approved medical use, with even more looking to do the same in the coming years.
Along with adding new states to the list of legalized entities, legislations also benefit operations in states where licensing was previously granted by expanding operational parameters and/or offering additional licenses for application. Whether you’re starting a new growing, drying, or dispensing operation or updating the capacity of your existing business, employing efficiently designed and installed systems can help to control cost, optimize available space, and maximize yield and profit.
Tracking The Flowering Market
Let’s start by taking a look at some of the most recent additions to the approved-states list:
Passed on November 9, 2022, and effective on December 8, 2022, a Missouri legislation permitted recreational cannabis use in the state and prohibited discrimination on the basis of medical cannabis use.
On December 1, 2022, Rhode Island became one of five states that have transitioned from medical dispensaries to accommodate adult-use sales. The market is expected to generate $80 million in sales in the first year and $300 million by the fourth year, according to projections.
The first legal dispensary for recreational marijuana in New York rung up its first sale on Thursday, December 29, 2022, opening up what is expected to be one of the country’s most lucrative markets for cannabis.
On January 26, 2023, Mississippi became the 37th state to legalize medical use.
Beginning July 1, 2023, Maryland will be the 20th state to legalize cannabis for adult use.
Readying for the Next Stage of Growth
For cultivators and dispensaries, having the ability to quickly adapt to opportunities for expansion within their respective markets is key. Whether they’re accommodating greater demand from residents or upgrading their space to utilize an increase in limits from local legislators, operators must respond quickly to remain competitive within the market. By employing versatile storage systems, cannabis facilities can become prepared ahead of time, including securing their facilities and optimizing their solutions to allow for maximum production and profit.
Spacesaver’s lineup of seed-to-sale cannabis solutions is designed to cover every stage of the production and distribution process, fulfilling today’s demands, and leaving room for tomorrow’s needs. Our GROW Mobile System allows cultivators to optimize floor space and maximize yield by eliminating wasted aisle space and utilizing multiple levels of growing area. In turn, energy use is reduced and efficiency improved, providing a more efficient environment for workers and plants alike. To further efficiency and boost worker safety, facility managers can easily add accessories like Spacesaver’s GROW Crosswalk to their GROW Mobile System, allowing quicker and safer access to second-tier-or-higher plants. When its time for harvesting, Spacesaver’s GROW Drying System and its integrated components including carts, racks, and mobile systems, help to maintain plant quality and streamline post-harvest management.
The Emergence of A Different Leaf In Canada
On October 17, 2018, the federal Cannabis Act made Canada the second country in the world to formally legalize the cultivation, possession, acquisition, and consumption of cannabis and its by-products. Since this Act, Canada has become home to roughly 3,700 cannabis stores and 920 active federal cannabis licenses, according to MJBizDaily.
In 2021, Canadians bought CA$3.83 billion (US$2.81 billion) worth of recreational cannabis from licensed stores. That figure jumped to CA$4.52 billion (US$3.35 billion) in 2022; a 17.9% growth year-over-year, according to data released by Statistics Canada. This sales growth was a direct result of an increase in the number of licensed cannabis stores in Canada.
What Could Be In-Store For 2023
As mentioned earlier, states are pushing and will continue to push for legalization and expansion within their territories. Below are details on four of the states attempting to pass regulations this year.
On March 7, Oklahoma voters will participate in a special election solely focused on the legalization of recreational cannabis.
Passed through the state House in 2022, the state of Minnesota is making strides toward approving recreational use by adults.
The state of Ohio is building momentum to for a ballot initiative in its November elections.
In Pennsylvania, there is a resurgence of support for the legalization of adult-use cannabis, with hopes of getting it on the ballot this year.
While these are just four examples of efforts toward initial legalization, legislative bodies in U.S. states and Canadian provinces and territories are continuing to push for the expansion of cannabis production and distribution. No matter which stage of the cannabis distribution or legislative process your organization falls under, Spacesaver’s expert products and professionals can help your business reach new heights in efficiency and profitability.
Progress Is Blooming
Will your cannabis business benefit from upcoming changes in legislation in the regions they operate in? Need help maximizing the space you currently operate in to maximize your yield? Spacesaver’s team of experts have the solutions to keep your production high and your profits higher.