Posted by Tom Bauer on Jan 8th 2018
A Rising Tide… Lifts All Boats in the Harbor
How the Explosion in Recreational Marijuana Will Likely Lead to Increased CBD Sales.
January 1st was a momentous day for California as it marked the first day of legal sales and taxation of RECREATIONAL marijuana. California is the largest marijuana market in the world and, by all accounts, currently makes up half of the existing U.S. marijuana market sales of around $8 billion. This is expected to rise to more than $21 billion by 2021.
Marijuana in California, like some 28 other States, has been focused on the medical marijuana side. Medical marijuana has been legal in California for over 20 years, and to date, most of the participants in the market have been either diehard marijuana users and/or people looking for medicinal benefits.
But now that it’s legal on a “recreational” basis, there is little doubt that consumers who heretofore have not partaken in marijuana, applied for a medical marijuana card or ventured into a dispensary, will now be tempted to partake with the expanded legality. Folks who may have tried marijuana 10, 20, 30 or even 40 years ago in college, may think, “oh, what the heck! It’s legal. Maybe I’ll buy some for the weekend”. And if they do, it will be a scenario that has played out in states that have already legalized recreational marijuana like Colorado, Oregon and Washington. Sophisticated branding and marketing will aid in luring these “new” consumers, bolstered by refined retail establishments offering easy access.
But something else is likely to happen. As these “new” consumers enter the market, they will likely become acquainted with OTHER cannabis products. They may be surprised to find that there are lotions, salves, face creams, eye creams, tinctures of hemp, and even lip balms available. They also may find additional health benefits beyond the “fun” of partaking in recreational marijuana. Or that these types of products are available even for their furry family members.
In short, I believe that this influx of marijuana customers will undoubtedly be drawn to Marijuana’s “cousin”, industrial hemp. They’ll see these products displayed where they purchase their “weekend stash”, or just learn about them due to their ongoing involvement. Either way, expect to see the sales of hemp CBD products rise right along with marijuana!
Now as many of you know, I don’t use marijuana, and don’t intend to now, even with its expanded availability. But I do applaud Californians for supporting this option. Undoubtedly it will expand our market and our customer base.
And provide our products for many more of “those who know…!”
with all our best,