Each week the EDGE Briefing will report on the conditions and trends in key cannabis markets across the country as we assess opportunities of interest to our investors in those markets. Cannabis Market Profile – Nevada
This week’s focus…Nevada
In the pandemic year of 2020, only 19 million visitors came to Nevada, about one-third of the average tourism for the state. On the one hand this had a dampening impact on sales at the primary market, Las Vegas. On the other hand, the state through the market research firm Headset, as reported by marijuanaventure.com , now has gained valuable insights into the demographics and the preferences of the indigenous Nevada customer. The market research found that flower still dominates sales, with edibles rising. The customers in Nevada continue to have the distinction of being the largest all-in-one vape market in the west. All-in-ones accounting for around 22% of vape sales as compared to 2.5% in Oregon and Washington. In terms of the size of the market, fiscal year sales 2019 – 2020 totaled over $685 million, generating $105 million in state tax revenue. At issue in the state now are factors affecting market expansion. First, what better place in the U.S. to have consumption lounges than Las Vegas? This seems obvious to all except the state regulators who are now, though, in the process of deliberating over the inclusion of another type of license that would cover a smoking lounge. Cannabis Market Profile – Nevada
And, well, it is no secret that Nevada is a hard state in which to get licensed. With dispensaries, for example there are only 80 open throughout the entire state of the 132 licenses that were granted for this purpose. In a study reported on at the end of March by RCGeconomics titled the Nevada Cannabis Dispensary Overview it was found that the Nevada economy could support as many as 1,283 additional dispensaries. All that is to show, however, the extent of the untapped sales potential that resides in Nevada.