According to a report on the Sacramento Bee, California’s black market for marijuana will not be on top much longer.
The black market currently outsells the Golden State’s legal marijuana industry but forecast has projected that this will change within five years.
BDS Analytics and Arcview Market Research have estimated that California’s total cannabis market is expected to earn about $12.8 billion this year, with $8.7 billion going to illicit operators and $3.1 billion to the state-authorized market.
The firms have forecast that 2024 legal marijuana sales are forecast to reach $7.2 billion, surpassing the projected $6.4 billion in illicit cannabis sales.
“A good number of California’s legal cannabis businesses are finding out they can compete, with their convenient, modern storefronts and delivery services, and branded edibles, concentrates, topicals and other products the illicit market largely doesn’t offer,” according to the report.
“Hence, nothing like the growth rates seen in earlier adult-use transitions can be expected unless California lightens the tax load and loosens constraints on legal operators,” the report also added.