Landing Page: Special Edition Update to the Annual Factbook

Annual Marijuana Business Factbook

6th Edition | Digital Year-End Update (11/2018)

To reflect a historic year in cannabis, the editors of the most comprehensive cannabis industry data resource have re-released the 6th edition of the Annual Marijuana Business Factbook. The official Year-End Update includes the latest financial, operational and regulatory developments you need to position yourself for long-term success.

Available exclusively by digital access, the digital Year-End Update includes:

    • New regulatory and market trend information in each State-By-State overview entry
    • Amended financial benchmarks accounting for dynamic global investment conditions
    • Adjusted projections and overall economic impact in consideration of more immediate and rapid market expansion worldwide
    • Revised charts in multiple chapters incorporating the newest sales, employment and investment data

If you already own a copy: Click here to log into your account to automatically access your updated digital version. The Year-End Update will not be reissued in print.

The 6th Annual Marijuana Business Factbook

Released during MJBizConNEXT 2018, the 6th edition introduced more than 300 pages of all-new and exclusive financial benchmarks, stats and forecasts as well as data on revenue, profitability and costs. The research published in the Annual Marijuana Business Factbook is essential for all professionals in the cannabis industry today.

Editors and analysts at Marijuana Business Daily painstakingly research and evaluate the industry year-round to provide readers with the most comprehensive analysis on evolving trends in every sector. Marijuana Business Daily provides the most trusted and unbiased business news coverage of one of the globe’s fastest growing industries.

This content was originally produced for

Report Summary: Hemp & CBD Industry Factbook

Exclusive Insights From This Factbook

Optimize your business decisions with all-new data and analysis on hemp and CBD exclusively published in this report. Apply research-driven insights from The Hemp & CBD Industry Factbook to understand economic, agricultural and regulatory developments impacting your position and growth in the industry. The thorough evaluations of current and upcoming industrywide challenges in this report are fundamental for maintaining a competitive edge in the industry today.


Authoritative analysis of looming regulatory changes based on revived interest in today’s hemp market

• Explanation of complex policy updates contributing to rapid change in the industry.
• The role of global trade and imports policy already affecting U.S. market opportunity.
➙ Is the U.S. poised to compete with powerhouse producers like Canada and China? While domestic production has grown rapidly, fluctuating import trends paint a different picture of how domestic producers are keeping up with hemp & CBD demand.

Breakdowns of preliminary considerations and obstacles across each U.S. state

• State-by-state requirements and fees for licensing and testing.
• Information on seed regulation and licensing for growers in each state.
• Market forecasts revealing realistic projections and expectations for new and existing hemp ventures.

Comprehensive information for processors and extractors to consider as demand for CBD surges

• Profitability for entrepreneurs entering or expanding current efforts in hemp extraction.
• Top challenges facing today’s processors – from fundraising to scalability and more.
• Established professionals’ outlooks and positions on the growing demand for CBD products.

A closer look at cultivator contributions and approaches to growing hemp

• Data regarding land currently allocated to various aspects of hemp production.
• Revenue reports from previous years’ sales alongside expectations for future earnings.
• A breakdown of cultivators using seeds versus clones to grow hemp, and the role of policy and regulation in the decision.
• The portion of farmers growing hemp under contracts versus those growing independently and selling their product after harvest.
➙ Learn about the benefits of each approach and understand why cultivators favor one over the other.

Current retail trends and methods for profitably introducing hemp and CBD to consumers

• Current sales and marketing tactics for CBD and the viability of different approaches.
• The role of e-commerce in hemp and CBD sales, and how retailers position their products when choosing brick-and-mortar outlets.
• Percentage of revenue generated from hemp and CBD sales in retail stores.
➙ The findings and analysis of total revenue from hemp-exclusive establishments compared to revenue from assorted-goods stores are important to note for retailers looking to maximize.

Three Charts & Three Takeaways

Graph 1: Annual U.S. Hemp-Derived CBD Retail Sales Estimates 2018 – 2022 (Hemp Industry Daily)

Current national sales predictions for hemp and CBD mirror the earliest and most exciting predictions for the cannabis industry overall. Between traditional brick-and-mortar stores and a booming e-commerce channel, CBD is projected to keep steady market growth through 2022, easily breaking $1 billion by 2020. Estimates presented here are modest and hinge greatly on legislation that has yet to be written, but even amid regulatory constraints and ambiguity about hemp’s position in the market today, researchers have confidently concluded this is not a stagnant industry, nor is it expected to slow down any time soon.

• Estimates for sales vary between publications, but based on comprehensive study and industry surveys, these projections are the most accurate and carefully considered presentations today – despite the lack of governmental reporting on this agricultural commodity. This continued growth begs the question: Is there a limit – and what is the limit – to the potential for this industry?

Graph 2: Portion of Hemp Cultivators Generating Revenue in 2017 & Revenue Expectations for 2018 (Hemp Industry Daily)

Optimism reigns supreme among hemp cultivators. While 64% of survey respondents reported that their 2017 revenue left much to be desired, the same group of respondents have a positive outlook about their profits in 2018 – 77% expect to widen profit margins this year. With so much to consider, from legislation moving down the pipeline while this book was being finalized to growing consumer interest deepened by medical research and mainstream media reporting, cultivators are not naive to the moving parts in the hemp industry and are maintaining genuine optimism for the potential of their crops to more and generate measurable profit very soon.

• With these considerations, what will optimism for industry growth bring to the market? Will confidence in profits translate to heightened competition or accelerated market saturation in the coming years for those already establishing themselves?

Graph 3: Breakdown of Retailer Survey Respondents (Hemp Industry Daily)

Hemp- and CBD-derived products maintain at least one distinct edge over their THC counterparts: the ability to distribute product through online sales. Survey data suggests many hemp and CBD retailers are not aligning their products alongside other marijuana and THC merchandise. With many retailers taking advantage of online sales, those who do offer products in a traditional storefront report their stock does not often commingle with products in a dispensary.

Hemp-devoted stores comprise the majority of physical establishments carrying hemp and CBD products, while assorted goods stores, like natural grocers or boutique beauty and cosmetic providers, are the second-most-popular location. While subject to change, and possibly reliant on marijuana’s recreational and medical legalization overall, these early trends reflect a distinct difference in how hemp professionals are beginning to position themselves in the market against multiple facets of THC products and distribution methods.

• You need to understand what this means for business strategies across the entire scope of hemp and CBD. What is the best way to get your products into the hands of consumers, and have “best practices” already been established? What are the opportunities to build on these strategies to distinguish yourself if you’re just entering the market today?

This content was originally produced for the 2018 Hemp & CBD Industry Factbook, published by Hemp Industry Daily

Landing Page: Hemp & CBD Industry Factbook

Following the revival of the hemp industry and a rapidly surging demand for CBD, the need for benchmark data and analysis on the hemp and CBD industries is eminent — Until now, the hemp industry has been unaccounted for by any federal agency.

The Hemp & CBD Industry Factbook is the most reliable and comprehensive data report on the hemp and CBD industries available today.

Use the all-new, exclusive research in the 2018 Hemp & CBD Industry Factbook to inform better business decisions and understand the current economic, agricultural and regulatory developments impacting modern hemp and CBD markets across the U.S.

Curated by the researchers and editors of MJBizDaily, the Hemp & CBD Industry Factbook contains data findings from exclusive industry surveys and analysis from available industry data reports about these rapidly evolving industries.

Use the comprehensive evaluations in this Factbook as a resource for understanding current and upcoming industry-wide challenges (and opportunities) affecting professionals at all levels in hemp and CBD.

This Factbook contains fundamental analysis on:

  • Preliminary considerations and obstacles in each U.S. state currently regulating or licensing hemp and CBD production and distribution
  • Looming regulatory changes on the horizon following revived consumer and professional interest in the modern hemp market
  • Considerations for processors and extractors in the hemp industry as consumer demand for CBD surges
  • Cultivator contributions and approaches to growing hemp considering revenue forecasts and the role of policy and regulation
  • Current retail trends and methods for increasing acceptable profit margins while introducing hemp and CBD to consumers

This content was originally produced for

Landing Page: Industry Insight: Countries to Watch Report

Industry Insight: Countries to Watch focuses on 10 prominent countries whose cannabis policies and plans are already shifting the way industry leaders approach business decisions.

Cross-border stock listings, mergers and acquisitions, international and intercontinental partnerships, and investments in foreign businesses are already happening – but not every legalized country treats these deals equally.

Use this complimentary report to determine which international markets have the most potential to impact your cannabis involvement. This report is designed to help you maximize your profits in the cannabis industry as it continues to evolve into a cornerstone of the world economy.

This free report gives thorough guidance on:

  • Evolving government regulations impacting the number and type of licenses available to cannabis professionals
  • Understanding current laws and the potential to influence policy in emerging cannabis nations
  • Market opportunities, licensing restrictions, government involvement and the forecast for profit in future endeavors
  • Market saturation and consumer interest in cannabis relating to your success in current market conditions.
  • Optimizing involvement across every cannabis sector, including: cultivation, distribution, retail and ancillary products and services

Trusted by cannabis experts, media groups, decision-makers and professionals around the world, MJBizDaily provides timely and accurate resources for sales information, market trends and data analysis in cannabis.

The Industry Insight: Countries to Watch report is available to download for a limited time as a complimentary product to MJBizDaily subscribers.

This content was originally produced for

Landing Page: Cannabis in Canada: Recreational Markets by Province

This is your guide to key cannabis market data and analysis across each Canadian province to ensure success in the new recreational market.

Our FREE report, Cannabis in Canada: Recreational Markets by Province, contains province-by-province financial breakdowns that are imperative for anyone pursuing or interested in Canadian cannabis.

As the first G-7 nation to legalize recreational cannabis nationwide, Canada is setting a precedent for international policy and trade opportunities. This convenient report ensures you have the most accurate insights to the Canadian market.

The data presented in Cannabis in Canada: Recreational Markets by Province is derived from dozens of interviews with industry experts and official information from governing authorities across all 10 provinces.

This free report covers topics such as:

  • Provincial and federal regulations, including potential overlap and inconsistencies
  • Where to optimize modern retail opportunities like vertical integration, online sales, cannabis cafes, and more
  • The best cities to set up cultivation operations, based on factors like climate, electricity costs and wholesale regulations
  • Fundamental consumer data, including the projected number of consumers, restrictions on public use, laws around public accommodation for cannabis and regulations on household grows
  • Individual provincial support resources like loans, education opportunities, research organizations and more

Trusted by cannabis experts, media groups, decision-makers and professionals around the world, MJBizDaily provides timely and accurate resources for sales information, market trends and data analysis in cannabis.

The Cannabis in Canada: Recreational Markets by Province report is available to download for a limited time as a FREE product to MJBizDaily subscribers.

This content was originally produced for

Landing Page: Cultivation Snapshot: U.S. Wholesale Marijuana Prices and Supply

Designed with the business questions of cultivators in mind, this FREE cultivation report includes all-new and insightful data about fluctuating wholesale cannabis prices in recreational and MMJ markets across the U.S.

Information included in this Cultivation Snapshot: U.S. Wholesale Marijuana Prices and Supply has been exclusively curated by researchers and editors at MJBizDaily and is the first of its kind regarding cannabis cultivation.

No other agency tracks the fluctuating cost and supply of wholesale cannabis, but as the cannabis industry continues to expand nationwide, the need for in-depth trend analyses has become crucial.

Editors and researchers of MJBizDaily surveyed dozens of growers and retailers across every recreational state and compiled the exclusive findings into useful trends in supply, price and market outlook. In addition to state-by-state breakdowns, this report offers insight to national wholesale trends.

This complimentary report includes:

  • State by state supply availability, pricing outlook and current price by weight
  • Trends across the national medical marijuana market
  • Graphs that reveal price fluctuations year over year (where available, depending on market maturity)
  • Analysis to help buyers and sellers alike make appropriate investment decisions

Trusted by cannabis experts, media groups, cultivators and professionals around the world, MJBizDaily provides the first and most accurate resource for sales information, market trends and data analysis related to cultivation.

The Cultivation Snapshot: U.S. Wholesale Marijuana Prices and Supply report is available to download for a limited time as a complimentary product to MJBizDaily subscribers.

Report Summary: 6th Annual Marijuana Business Factbook

Insights from each section:

For the cannabis professional with questions, this Factbook provides answers. You need to understand the major trends in every sector of the industry, and our data findings – paired with survey responses from more than 900 professionals – reveal what the future of cannabis holds. In this Factbook, you can look forward to:

➙ Retail sales data that reveals major trends in this growing industry

• Economic impact projections and employment figures are optimistic for the future of the industry, BUT…
• Our exclusive reports on obstacles and challenges highlight major shifts in priorities and concerns – are vertically integrated businesses going to dominate the industry?

➙ 100 pages dedicated to new data on medical and recreational markets

• Sales, regulations and business opportunities vary widely on a state-by-state basis.
• Breakdowns of state-level regulations and legislation are also included.

➙ New information showing why recreational growth is slowing in maturing markets

• Surveys support how this trend impacts sales as more states legalize.
• Compared to other established consumer markets, like alcohol, cannabis is still growing rapidly.

➙ Key financial and operational benchmark data for each segment of the cannabis industry

• We’ve added more charts and analysis this year to further explore one of the more modern cannabis business models – vertical integration.
• See what unique challenges each sector faces when it comes to turning a profit.
• Some business segments saw rapid growth paired with sustained profit … others are barely breaking even.

➙ Responses from ancillary businesses indicating which big changes are on the horizon

• There’s a distinct need for expansion of ancillary services and products as the cannabis market grows.

➙ A detailed look at the funding and investment climate in the cannabis industry, answering questions such as:

• Where are the sources of startup capital coming from?
• What are investor returns?
• Where can I find data on current and future investments?

5 Critical Charts to Consider in 2018

1. Retail on the Rise: U.S. cannabis sales projections through 2022

Annual cannabis retail sales continue to grow year-over-year as new markets emerge and more states legalize medical and recreational marijuana. Sales in 2018 are projected to increase by roughly 50% from 2017, on pace to reach $8 billion-$10 billion by the end of the year.

By 2022, we project annual retail marijuana sales in the United States could top $20 billion, which would represent more than a 200% increase from 2017.

Graph: U.S. Cannabis Retail Sales Estimates 2017 – 2022 (MJBizDaily)

2. The Big Picture: A look at the impact of cannabis on the U.S. economy

The marijuana industry will create an estimated $28 billion-$34 billion economic impact in 2018. By 2022, that could soar past $75 billion annually.

Estimates for the industry’s economic impact are based on retail marijuana sales and incorporate a multiplier of 3.5. So, for every $1 consumers or patients spend at dispensaries or rec stores, another $2.50 in economic benefit is created in cities, states and nationwide.

The overall economic impact includes a host of factors, including the launch of new businesses, marijuana companies collectively paying hundreds of millions in state and local taxes, tourists visiting recreational states and spending money to legally consume cannabis, and MJ employees circulating their earnings back into the economy via personal spending and taxes.

Graph: U.S. Cannabis Industry Total Economic Impact 2017 – 2022 (MJBizDaily)

3.Cannabis Employees: Estimating the number of people working in cannabis

The cannabis sector currently employs an estimated 125,000-160,000 full-time workers. These figures consist primarily of workers directly employed by cannabis businesses – such as budtenders and extraction technicians – as well as employees from ancillary companies that generate a sizable portion of their revenue from the marijuana industry.

To put this in perspective, there are potentially more full-time marijuana industry workers than there are librarians or kindergarten teachers throughout the country – and over six times the number of coal miners in the United States.

Graph: Number of Full-Time Workers in the Cannabis Industry: Employment Comparisons to Mainstream Professions (MJBizDaily)

4. Job Security: Adding more full-time jobs through 2022

Compared to other burgeoning industries, the number of full-time jobs in the cannabis industry is growing at a rapid-fire pace. The industry is projected to add as many as 340,000 full-time jobs by 2022. This reflects an estimated growth of 21% per year, significantly higher than official estimates for other industries and professions.

For example, employment across the entire U.S. health-care industry is expected to grow 2% annually, while the number of solar panel installers is projected to grow by 7% each year.

Although sales growth in some mature markets is beginning to slow, lucrative MMJ markets in states like Pennsylvania, Florida and Maryland are just getting started. Our estimates also account for the fact that more states will likely legalize medical and recreational marijuana in the coming years, another major driver of job growth that will have a positive effect on the economy as employees spend their earnings on goods and services at local, state and federal levels.

Graph: U.S. Cannabis Industry Full-Time Employment Estimates: 2017 – 2022 (MJBizDaily)

5. In Perspective: Defi ning revenue and monetizing the demand for cannabis

In 2017, sales of medical and recreational cannabis in the United States were nearly nine times higher than Oreo cookies and almost on par with Americans’ collective spending on Netflix subscriptions. With the addition of California’s recreational market sales in 2018, cannabis sales could easily eclipse McDonald’s annual U.S. revenue.

Total demand for marijuana in the United States, including the black market, is around $52.5 billion, according to estimates. If the federal government legalized marijuana nationwide, sales might start out around that level but would likely rise as cannabis gained mainstream acceptance and the market evolved. Eventually, marijuana could surpass cigarette sales – with the potential to rival beer in terms of overall sales.

Graph: Annual U.S. Cannabis Sales vs. Other Industries & Goods (MJBizDaily)

5 Key Takeaways

1. Investors doubling down

Investors plan to provide more than twice as much capital to cannabis businesses in 2018 than in all previous years combined.

Many investors surveyed plan to deploy upwards of $2 million to cannabis businesses in 2018, with several survey participants intending to provide over $30 million in funding to marijuana companies this year. This level of investment in the cannabis industry has become more common as businesses demand more capital.

• Until 2018, the average cannabis investor had sunk about $750,000 total into the cannabis industry. But this year many investors are ready to dig deeper into their pockets and spend millions on industry advancements. We examine the signals investors are seeing in cannabis that is driving them to spend even more this year.
Graph: Cannabis Industry Investors: Typical Investment Amount to Date, Additional Investment Amount Planned for 2018 & Size of Each Investment (MJBizDaily)

2. Vertical integrators seeking market domination

Vertically integrated companies are inherently designed to add locations in a sustainable and profitable manner over time. Businesses have implemented standard operating procedures around opening new stores and have team members devoted to the licensing and application process.

With tight control over their own supply chains and the ability to leverage economies of scale, these retailers can profitably sell products at lower prices than smaller, independent competitors.

• What will it mean for profits if your business isn’t vertically integrated? With more leverage and higher profit margins, vertical integration is becoming more than just a niche in retail business models.
Graph: Vertically Integrated Retailers: Number of Dispensaries/Stores at Launch Compared With Current Number of Dispensaries/Stores (MJBizDaily)

3. Is the future dimming for indoor grows?

Profit margins for energy-intensive indoor grow operations have been shrinking, while prices for cannabis cultivated in more efficient greenhouses are approaching – and in some cases surpassing – indoor-grown cannabis.

Producing a pound of indoor-grown flower costs about 30% more than flower grown in a greenhouse. The disparity is even greater when compared to flower grown outdoors, where production costs are less than half those faced by indoor cultivators. Several established cultivators have moved production into greenhouses based solely on economics – a trend more businesses are likely to follow.

The ability for greenhouse growers to receive equal or greater prices in the wholesale market with substantially lower production costs has called into question the long-term viability of growing indoors.

• Greenhouses and outdoor grows reduce costs – can your indoor grow afford to compete? Niche consumers are even willing to pay top dollar for greenhouse and outdoor-grown flower, so what will indoor cultivators do to keep up?
Graph: Wholesale Cultivators: How Much Does it Cost Your Business to Produce One Pound of Marijuana? (MJBizDaily)

4. Infused product companies expanding across multiple states

A growing number of infused product companies are developing into national brands. Relative to other plant-touching sectors of the marijuana industry, infused product manufacturers can easily expand their operations across state lines. Many growth-minded infused product companies are pursuing aggressive expansion strategies with licensing agreements and partnerships to bring their brands into new markets.

The goal for many infused product manufacturers is to grow into large, dominant brands that become household names with patients and consumers.

• Niche infused products are finding ways to go national. Whether or not you are licensed in multiple markets, how do you ensure your products become a household name?
Graph: Infused Product Manufacturers Based in California, Colorado, Oregon & Washington: Portion That Sell Products in More Than One U.S. State (MJBizDaily)

5. Cannabis innovation forces ancillary groups to specialize

Across the ancillary products and technology sector, just over 40% of companies serve the marijuana industry exclusively. For ancillary groups that serve multiple industries, revenue generated from marijuana companies accounts for roughly half their total annual sales.

The rapid pace of innovation in the cultivation and processing sectors of the cannabis industry is driving equipment and materials to become more specialized. Core product offerings for many companies that serve these market segments now target marijuana businesses specifically, even though they launched outside the cannabis industry.

Ancillary services firms typically bring in less than $200,000 in total annual revenue, so the rapid emergence and growth of the cannabis industry gives entrepreneurs a significant opportunity to expand their businesses.

• For ancillary companies serving the cannabis industry, rapid growth in the space means a boom in revenue for marijuana-related products and services. Even ancillary groups that were founded to serve different industries are gravitating toward becoming cannabis-exclusive as demand for specialized products and services grows.
Graph: Ancillary Technology & Products Companies That Serve Multiple Industries: Average Portion of Revenue Derived From Cannabis Industry (MJBizDaily)

This content was originally produced for the 6th Annual Marijuana Business Factbook, published by Marijuana Business Daily