Cannabis Market Profile – Arizona

Arizona – Fastest Adult Use Start

Last November, Arizona voters, as did voters in 4 other states at the time, passed adult use legalization.  Unlike the others, however, Arizona launched adult use just 80 days after the legislation was passed.  The 2021 Marijuana Business Factbook projects retail sales this year will reach between $250 million and $300 million and to grow to $1.3 billion-$1.5 billion by 2025.

What makes the Arizona cannabis market appealing to investors is the fact that vertical integration and a cap on total licenses issued enables operators to compete in an environment not threatened by oversaturation, which is the case in other state’s like Colorado, Oklahoma and Oregon where oversaturation may be undercutting operator profitability. Limited licensing, therefore, increases the value of licenses issued.

Multistate operators (MSOs) have their sights set on the state as evinced by the recent acquisition announcement of the state’s largest operator,  Harvest Health & Recreation Inc. (OTC:HRVSF), by Trulieve Cannabis Corporation (OTC:TCNNF), a $2.1 billion all stock deal.