Average monthly sales for recreational dispensaries increased $50,000 quarter over quarter
California’s medical marijuana market has been up and running since the 1990s, but its adult-use marijuana market only opened for business in January. Initially, the state’s adult-use market got off to a slow start, but third-quarter data suggests that perhaps the state is overcoming its growing pains. If so, it could be great news for cannabis companies like KushCo Holdings (NASDAQOTH:KSHB) and MedMen Enterprises (NASDAQOTH:MMNFF).
Getting on track
California’s Emerald Triangle region is one of the country’s largest sources of marijuana, and its medical marijuana market sales last year totaled about $3 billion, which makes the state’s marijuana market roughly two times larger than Colorado’s medical and recreational marijuana markets combined.
There have been some bumps since the adult-use market opened earlier this year, but data reported by the state implies recreational marijuana market sales totaled about $350 million in the third quarter, according to Matt Karnes of GreenWave Advisors, and that represents a 24% increase from the second quarter.
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