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Recreational weed industry 'verges on collapse' due to steep taxes, plunging prices, glut of competition- and thriving illicit pot market
Mail on line ^ | 27 August 2023 | KEITH GRIFFITH

Posted on 08/27/2023 6:04:50 PM PDT by dennisw

Across the US, the legal weed industry is under pressure from a 'ganja glut' Prices have plunged even as dispensaries complain of high taxes and red tape Industry group warns pot business is 'on the verge of collapse' without reforms

Across the US, the legalized marijuana industry is buckling under the strain of plunging prices, patchwork state regulation, and burdensome taxes, analysts and industry groups say.

'All of these issues are chipping away at the health of the industry to the point where I would describe the industry as in crisis in the United States,' Beau Whitney, senior economist for the National Cannabis Industry Association, told DailyMail.com this week. 'This is unsustainable from an economic perspective.'

Currently, the recreational use of cannabis is legal in 23 states, and last year state-regulated medical and recreational pot sales topped $26 billion nationwide, according to Vangst.

But even while sales soar, dispensaries say eking out a profit is growing harder, as a glut of weed production pushes prices lower -- a boon for blissed-out pot consumers, but a bane for growers and retailers.

In California, dispensary chain MedMen, once dubbed the 'Apple store of weed,' teeters on the brink of financial ruin, while in New Jersey a trade group warns the industry is stagnating in a 'doom loop' due to licensing delays.

'Sadly, the legal cannabis markets demanded by countless Americans are on the verge of collapse if common sense, practical reforms are not enacted urgently,' the National Cannabis Industry Association (NCIA) warned in a report this month.

(Excerpt) Read more at dailymail.co.uk ...


TOPICS: Business/Economy; Education; Food
KEYWORDS: drugs; industry; marijuana; pot; prices; weed
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1 posted on 08/27/2023 6:04:50 PM PDT by dennisw
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To: dennisw
Across the US, the legalized marijuana industry is buckling under the strain of plunging prices, patchwork state regulation, and burdensome taxes, experts say
2 posted on 08/27/2023 6:05:47 PM PDT by dennisw (Never attribute to incompetence& stupidity, that which is adequately explained by malice)
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To: dennisw
Recreational weed industry 'verges on collapse' due to steep taxes

Leave it to government to make illegal weed seem like the best option.
3 posted on 08/27/2023 6:06:04 PM PDT by AnotherUnixGeek
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To: AnotherUnixGeek

If you think there’s a war on drugs now, just wait until the government gets a skin in the game.


4 posted on 08/27/2023 6:06:53 PM PDT by dfwgator (Endut! Hoch Hech!)
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To: dennisw
Jeff Bridges GIF - Find & Share on GIPHY
5 posted on 08/27/2023 6:07:18 PM PDT by dennisw (Never attribute to incompetence& stupidity, that which is adequately explained by malice)
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To: dennisw

What’s interest regarding that map, many of the Midwest and southern cities have some of the highest crime rates...There was recently an article about that.


6 posted on 08/27/2023 6:11:20 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: AnotherUnixGeek

My theory, maybe not so much a theory now, is that if you want to destroy ANY industry, put the government in charge.

If the US Gov were in charge of sex, we’d have no more STDs because they would make sex tedious, boring, and expensive. lol


7 posted on 08/27/2023 6:13:04 PM PDT by fightin kentuckian
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To: dennisw

Not legal anywhere in the USA.. darn pesky federal laws.


8 posted on 08/27/2023 6:13:36 PM PDT by cableguymn
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To: dennisw

In February, the Oregon Liquor and Cannabis Commission reported marijuana businesses were sitting on about 3 million pounds of unused cannabis, as well as 75,000 pounds of concentrates and extracts.

https://www.dailymail.co.uk/news/article-12437955/recreational-weed-industry-economics-profit.html


9 posted on 08/27/2023 6:13:56 PM PDT by PeterPrinciple (Thinking Caps are no longer being issued but there must be a warehouse full of them somewhere.)
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To: fightin kentuckian

oh so they would put my ex in charge?


10 posted on 08/27/2023 6:14:21 PM PDT by cableguymn
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To: dennisw

A drugged nation isn’t a nation that should prosper. It’s a failed nation.


11 posted on 08/27/2023 6:15:24 PM PDT by Trumpisourlastchance
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To: dennisw

They took my Creedence tape man…


12 posted on 08/27/2023 6:16:35 PM PDT by EEGator
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To: dennisw
So legal marijuana sales are down. This can easily be solved by putting a drug expert in charge of the problem.


13 posted on 08/27/2023 6:17:04 PM PDT by Leaning Right (The steal is real.)
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To: dennisw

When it doesnt feed your inner desire for rebelliin, it just isnt as much fun.


14 posted on 08/27/2023 6:18:48 PM PDT by Jonty30 (If liaaaaaaaaberals were truth tellers, they'd call themselves literals. )
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To: dennisw

Legalizing recreational marijuana was never about tax revenue; it was about enabling the illicit marijuana market to thrive.


15 posted on 08/27/2023 6:19:38 PM PDT by T.B. Yoits
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To: dennisw
The whole industry is a shoddy racket by any measure.

Very few banks even want to deal with marijuana dispensaries in states where weed has been legalized. The biggest problem is that marijuana is still a narcotic under Federal law, so banks run the risk of getting prosecuted for aiding and abetting a criminal enterprise.

Imagine running a business where you can’t process credit card transactions, and where you have to pay most of your expenses in cash.

16 posted on 08/27/2023 6:20:03 PM PDT by Alberta's Child (“Freedom is just another word for nothing left to lose.”)
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To: PeterPrinciple

I don’t know if it’s true, but a young guy I was talking to said even weed and consumables were tainted by fentanyl sometimes.

Does that sound right?


17 posted on 08/27/2023 6:23:04 PM PDT by EEGator
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To: dennisw

The leftists pushed and pushed for this crap. First it was medicinal. Now probably 20% of homeless are psychotic because of marijuana.


18 posted on 08/27/2023 6:25:16 PM PDT by willk (Local news media. Just as big an enemy to this country as national media.)
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To: dennisw

The leftists pushed and pushed for this crap. First it was medicinal. Now probably 20% of homeless are psychotic because of marijuana.


19 posted on 08/27/2023 6:25:18 PM PDT by willk (Local news media. Just as big an enemy to this country as national media.)
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To: dennisw

Gee, what a surprise.


20 posted on 08/27/2023 6:27:35 PM PDT by Fido969 (45 is Superman! R )
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