ADVERTISEMENT

The way people buy legal marijuana will change in 2019 — here's what to expect

Americans will have an easier time buying legal marijuana in some states.

null

Recreational cannabis spending is expected to outpace medical marijuana sales for the first time in 2019, according to a comprehensive new report from Arcview Market Research.

ADVERTISEMENT

It means new users will likely flood the recreational market in the next few years, with some switching over from medical marijuana programs in their states. California and Canada, which could legalize marijuana outright as early as July 1, 2018, are projected to drive major growth because of their population sizes.

A majority of Americans live in states that have access to the drug for medical use. But as the market ramps up, some users could see a change in the way they buy bud.

Tom Adams, editor in chief of Arcview Market Research, says for medical marijuana patients in states that have since legalized marijuana outright, "their lives have not changed much."

ADVERTISEMENT

"They go into the same stores — or even nicer or bigger stores, now that there are a lot more of them — and they just shop at the medical cash register," Adams says.

(Dispensaries often times have a counter for recreational sales and a counter for medical sales, or the retail shops specialize in one market. Washington folded its medical market in 2015.)

The biggest difference in how medical and non-medical users pay for pot might be taxation.

According to Adams, people who buy marijuana for recreational use in Colorado can expect to pay between 15% and 20% more than medical patients do. The state places a 2.9% sales tax (plus local taxes) on both varieties of marijuana, but it waives the 10% state marijuana tax for patients. Many dispensaries there also offer steep discounts for medical buyers.

When California rolls outs its recreational market in 2018, the state will impose a 15% tax on sales of the drug, but only non-medical users will have to pay it.

ADVERTISEMENT

It's potentially more expensive, but recreational weed has fewer logistical challenges for users.

In states where medical marijuana is legal, patients get a letter of recommendation from their doctor to use and carry small amounts of the drug. Eligibility varies dramatically by state. In New Jersey, patients may qualify if they suffer from a debilitating or life-threatening disease, such as cancer, epilepsy, or m registered with the state.

There are limitations on the quantity and form of drugs purchased in some states. New York and Minnesota have two of the strictest medical marijuana programs in the nation, and allow patients to buy a 30-day supply of "non-smokable" marijuana, such as gel capsules or oils.

By comparison, the recreational marijuana market seems much more lax.

ADVERTISEMENT

According to Arcview, the recreational market will overtake medical in revenue in 2019. The gap will continue to widen as (presumably) more recreational markets come online.

Adams said the data was not all that surprising.

"There's huge growth in the user base when you stop requiring people to get medical recommendations ... when you have stores selling edibles and concentrates, and not just the dealer around the corner selling bags of weed," Adams says.

FOLLOW BUSINESS INSIDER AFRICA

Unblock notifications in browser settings.
ADVERTISEMENT

Recommended articles

Zap unveils Africa's first non-custodial exchange

Zap unveils Africa's first non-custodial exchange

The future of healthcare on display: Day 1 of Medlab West Africa wraps up

The future of healthcare on display: Day 1 of Medlab West Africa wraps up

Nigeria suspends a Chinese business over discrimination charges

Nigeria suspends a Chinese business over discrimination charges

10 African countries with the greatest soft power influence over the world in 2024

10 African countries with the greatest soft power influence over the world in 2024

List of the smartest African Cities in 2024

List of the smartest African Cities in 2024

U.S. officials admit President Biden’s strategy for Africa is predictably failing

U.S. officials admit President Biden’s strategy for Africa is predictably failing

Egypt gets back its 3,400 old antique from Switzerland

Egypt gets back its 3,400 old antique from Switzerland

Top 10 African countries that offer the most opportunities for prosperity

Top 10 African countries that offer the most opportunities for prosperity

Trusteeship is for everyone, including you

Trusteeship is for everyone, including you

ADVERTISEMENT