A new market report detailing the growth of the legal cannabis market in California has found that online and delivery cannabis sales are taking off among millennials in the state. The report, prepared by cannabis analytics company New Frontier Data in partnership with online cannabis marketplace greenRush.com, covers product trends, market-growth forecasts, and consumer demographics relating to the state's legal cannabis industry.
According to the report, young adults aged 18-34 account for 80% of all online cannabis purchases. The majority of these online purchases are for flower products, and online buyers tend to purchase smaller product package sizes. Out of all cannabis products sold via greenRush.com, 70% were flower products. Out of all the flower sales on the platform, 60% of the sales were for one-eighth ounce packages.
The report also makes long-term predictions for California's cannabis industry. Legal sales are projected to hit $2.8 billion next year, and grow to $6.6 billion by 2025. Retail prices are expected to decline eventually, as they have in other canna-legal states, but may remain high in the short term. The report projects that if more licenses become available, or larger producers enter the market, prices will be more likely to fall, especially over the next five years.
“Significant changes are already underway in California for medical cannabis and adult use laws, which we see will have major implications for the cannabis industry, including e-commerce and delivery services in the state,” Giadha Aguirre de Carcer, CEO of New Frontier Data, said. “As the largest state in the country — and the largest potential market for cannabis products — the implications for the growth of the industry because of California’s adult use market cannot be overstated.”