Peggi Clough, Author at Green Market Report

Peggi CloughPeggi CloughAugust 3, 2018
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4min13682

New data released by Flowhub finds the price of an eighth of cannabis in U.S. cities can vary by as much as 15 percent after taxes have been applied. Now that cannabis is being regulated by cities and states with complicated tax codes, consumers can pay 20 to 40 percent tax on their purchases.

The cities included in the data were Boston, Denver, Las Vegas, Los Angeles, Portland, San Diego, San Francisco and Seattle—the top eight major urban cannabis markets. In order to determine which city had the highest priced eighth of an ounce of flower, Flowhub started by assuming the price of each eight was $35 and then added on the taxes associated with that location. Prices do not reflect the actual cost of an eighth in those cities.

Most expensive was Seattle, with a cost of $51.49. Seattle was first place in price on the list because it also has the highest tax rate at 37 percent.

Second place Los Angeles came in at $48.48. The 35 percent taxes include excise, sales, and business-REC taxes. Taxes in California are calculated against the subtotal and applied taxes. For example, in San Francisco, the state sales tax is 8.5 percent of the subtotal plus the excise tax.

Interestingly, prices in the three California cities differ by quite a bit. Eighths in San Diego and San Francisco cost $45.54 and $43.67, respectively. That’s almost $5.00 less than the price in Los Angeles. San Diego taxes at 27.75 percent and San Francisco, 23.5 percent—a big difference from LA’s 35 percent.

Denver places the largest number of taxes on cannabis of any of the cities on the list. The 26.15 percent taxes include a state cannabis retail tax, state and municipal sales taxes, a Denver retail marijuana tax, an RTD tax, and a cultural tax. Still, with all these taxes, Denver was 5th in price, at $43.14.

Eighths in Boston and Portland are taxed at 20 percent and both have a cost of $42.00. Boston places excise, state sales and local municipal business taxes on cannabis, while Portland has two taxes: OLCC state and Portland city.

Las Vegas came in the lowest priced at $41.39. Taxes there run 18.25 percent and consist of a state recreational cannabis tax and sales tax.

Smaller dispensaries and entrepreneurs are fearful that high taxes will force them out of the market, so Flowhub has some advice for them. It includes understanding local laws, keeping detailed records, setting an order of operations for tax calculations and being upfront with consumers. They also suggest fighting for fairness by lobbying lawmakers for responsible regulations in the cannabis market.


Peggi CloughPeggi CloughMay 17, 2018
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3min5320

Stemless is a Portland-based startup that gives cannabis consumers an easy way to buy from their local dispensaries without having to leave home.

“We are an online platform that helps dispensaries connect with their customers, so their customers can order from them in a way that is convenient, fast and, most of all, legal,” says Stemless founder Koushi Sunder.

First, the Stemless website connects patrons to their nearest dispensary. The store’s inventory is listed, so customers can shop, securely pay, and have their order delivered or they can pick up in the store without waiting. In addition to providing online ordering and tracked delivery via custom apps, Stemless also gives dispensaries the ability to text customers and reward them with loyalty programs.

Stemless is entering a market dominated by the cannabis delivery service Eaze. This first-market company has seemingly owned the California cannabis delivery service but could face new pressure due to a recent lawsuit filed by Farrah Williams as reported by MJ Biz Daily. In the lawsuit, Williams claims that Eaze sent unsolicited texts and was violating the Telephone Consumer Protection Act, 47 U.S.C. § 227.

The suit claims that Eaze “‘growth hacked’ its way to the top of the pot delivery business – specifically, by relentlessly bombarding existing and prospective customers with text messages and other digital spam, day after day, en masse, without anyone’s permission, precisely as experienced by Plaintiff here.”  Williams claims her privacy was disrupted by the continuous texts. While it won’t be known for some time whether Williams will win her case or if it will even affect Eaze, Stemless seems poised to jump in to grab market share.

Sunder says Stemless is for everyone, but right now it has two main groups of users: people who are new to dispensaries and want to learn about products from the comfort of their own homes, and people who are frequent buyers and spend a lot of time in lines at dispensaries. Stemless gives both types an easier way to buy cannabis than traveling to dispensaries.

Founded in 2015, Stemless currently has 25 stores from Oregon and California on their platform. They recently announced they’ll be expanding into all states where cannabis is medically or recreationally legal. You can learn more about them at Stemless.co.

 

 


Peggi CloughPeggi CloughMay 9, 2018
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4min11870

In states where legalization has occurred, recreational marijuana consumers are now using far less alcohol and over-the-counter medications, according to a new report by High Yield Insights.

The consumer behavior company looked at feedback from recreational users in states where recreational cannabis is legal. They found that more than 20 percent of people who consume marijuana recreationally are using 27 percent less OTC pain relievers and 21 percent less alcoholic beverages. Those weren’t the only steep drops found, either. The report also indicated those consumers are using 22 percent fewer sleep aids, consuming 20 percent less beer, and 18 percent less wine.

“We are just starting to grasp how legalization has impacted consumer behavior, be it spending, usage occasions, or shopping habits. Understanding these changes will lead to new growth opportunities for cannabis and further disruption for other categories,” said Mike Luce, co-founder of HighYield Insights. “Our findings uncovered promising consumer niches for the industry as well. For example, many older consumers 55+ are reengaging with marijuana, with 56 percent reporting a return to marijuana after having tried cannabis products at a younger age.”

The High Yield Insights report concluded that people are using recreational cannabis for pain, anxiety, and sleep due to the fact that the largest total decline in use was in pharmaceuticals. Prescription pain reliever use dropped 13 percent; anxiety medications, 13 percent; and prescription sleep aids, 11 percent.

According to the survey, when asked which type of occasion they typically use cannabis for, the top answers were for relaxation, as a sleep aid and to socialize at casual get-togethers. Other reasons or occasions included creativity, anxiety and before a meal with a friend or partner. People between the ages of 35-44 were more likely to use cannabis for relaxation, while younger consumers used it before various social activities.

Nearly half of the people surveyed use marijuana multiple times a week. Men are more likely to be heavy users, with 50 percent of them using it multiple times a week. Women were close behind at 47 percent. Sixteen percent of consumers use cannabis 3-4 times a month, while 13 percent use 1-2 times a month. Twenty-one percent of people surveyed use cannabis less than once a month.

The report showed that convenient forms, such as edibles and pre-rolls, are in high demand.
It concluded that packaging explaining a product’s effects is necessary to assist people who may not be familiar with the strain they’re purchasing.

The survey found that 65 percent of recreational cannabis consumers see legalization as positive for their communities, even though some are concerned with underage users.

High Yield Insights believes the report can be used by everyone in the cannabis industry to better understand consumers and their wants and needs. More information can be found in their “Recreational Cannabis Consumer” report.


Peggi CloughPeggi CloughApril 19, 2018
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5min4720

A recent study done by LeafLink predicts that this 4/20 will be the first ever to have retail sales top $1B, even reaching as high as $1.2B, based on their wholesale marketplace figures.

LeafLink, a B2B e-commerce marketplace for cannabis, used proprietary data and sales figures to predict sales for this 4/20 holiday. They also identified that buyers are purchasing branded products rather than regular cannabis for their 4/20 celebrations.

The study found that the buying patterns of cannabis companies around the 4/20 holiday actually benefit consumers. The market, especially the recreational one, is so competitive that there’s little room to raise prices, even at a time when there will be more sales. As long as new brands are popping up monthly, a particular product may have 10 other competitors in the same store, leading to near-saturation of some product markets.

March was in the top three ordering months for retailers on LeafLink last year—with purchases 14 percent larger than in average months. These orders were actually 24 percent larger than those placed in April. This shows most retailers were already prepping for 4/20 a month ahead of time. In March of both 2017 and 2018, LeafLink’s retailers in Colorado spent 50 percent more on LeafLink than they did in February. March 2018 saw over $29M in orders placed, with the online marketplace’s annual sales being $356M.

It’s not only retailers that are increasing their 4/20 supply. According to Flowhub, in 2017, total sales of cannabis by consumers on 4/20 represented a 44 percent increase from an average Thursday and 30 percent more than an average Friday. The number of people who checked into dispensaries on 4/20 increased by 40 percent from a typical Thursday and by 28 percent from a typical Friday. Flower was the top seller, with the equivalent of nearly 900,000 bowls sold.

This year, LeafLink created a “Cyber Monday” promotion on 3/20 to prepare for 4/20. They say people are driving from other states to purchase cannabis for the holiday, so competition to win over their business is aggressive. They discovered that retail dispensaries are eager to capitalize on 4/20. They buy in bulk, due to the industry’s banking restrictions that limit purchases they can make over time. Although other industries don’t have these constraints, cannabis companies have figured out how to work within them.

The Cyber Monday campaign was a success; products that were featured had an average increase of 31 percent over those not included in the special. Edibles were the biggest hit—some had more than double the orders over the previous week.

While LeafLink predicts 4/20 sales may peak someday, they don’t see that happening in the next five to 10 years. During this time, they foresee the month prior to 4/20 being the best time for sales, with people continuing to travel to recreational states for 4/20. They also believe the influx of new products and brands will remain high in the near future.

The 4/20 information and data provided by LeafLink can help cannabis retailers and companies by giving them a look at demands and buying patterns, not only of customers but also of the industry. The study shows that it’s worth the investment for cannabis companies to stock up on products in March to prepare for the 4/20 rush.

 


Peggi CloughPeggi CloughApril 18, 2018
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5min5230

Of the nearly 5,000 people surveyed by legal cannabis delivery service company Eaze, more than half report they’ll be openly celebrating 4/20 this year.

Eaze asked their customers questions about their consumption openness when discussing their use and thoughts on celebrating their first legal 4/20 holiday in California.

Seventy-three percent surveyed reported the reason they’re celebrating 4/20 for the first time is that cannabis is now legal. About a quarter of Baby Boomers will be first-time celebrants. Sixteen percent of Gen Xers, 10 percent of Millennials and 12 percent of Gen Z adults will be partaking in celebrations for the first time this year.

Gen Z adults are most likely to post about it on social media, at 52 percent, and more surprisingly, Gen Xers are more likely to share on social media than Millennials, at 46 percent and 42 percent, respectively. Forty-seven percent of women report they’ll probably share about their 4/20 plans on social media, while only 42 percent of men will.

The trend of women being more forthcoming about their cannabis use also held true where their family and friends are concerned. They’re a bit more open than men when speaking about cannabis consumption, at 96 percent versus 95 percent. Almost all of the adults surveyed—99 percent—have shared about their use with friends, but they’re not as open with family members. Forty-seven percent of parents have told their children, with mothers being more likely to tell them than fathers, 61 percent to fathers’ 37 percent.

Seventy-two percent of adults reported that they’ve told their parents about their cannabis use. Baby Boomers are most likely to tell their parents, at 79 percent. The numbers went down with age: 75 percent of Gen Xers, 72 percent of Millennials and 67 percent of Gen Z adults have been open about their cannabis use with their parents. A quarter of people surveyed reported that they’ve used cannabis with a family member for the first time since its legalization.

Legalization has made it easier to talk to others about their cannabis consumption, according to 52 percent of respondents. Thirty-eight percent of women cited family concerns as the reason they’re not open about their use, 35 percent said career concerns and 32 percent stated medical privacy. Family concerns were the reason 62 percent of men are hesitant to speak about their use, and 68 percent said medical privacy.

Sixty-five percent of men reported career concerns prevent them from speaking freely about their cannabis use, yet they’re more open about their use with their colleagues and their supervisors than women tend to be. Baby Boomers are less likely than Gen Z adults to share their cannabis consumption with their boss, but only by a small margin, 31 percent versus 33 percent. Gen Xers were most likely at 40 percent, and Millennials were at 39 percent.

On the medical front, 70 percent of those surveyed have a friend or family member who’s benefitted from medical cannabis. This has helped 96 percent of them become more open with others about their own personal use.

 


Peggi CloughPeggi CloughApril 16, 2018
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4min4440

According to a March survey done by MedReps, 46% of pharmaceutical sales representatives reported that they expect medical marijuana legalization and stricter opioid laws to have a positive impact on their jobs.

MedReps, an online healthcare sales job site, conducted a survey of 500 sales professionals in medical and pharmaceutical sales, as well as non-medical and non-pharmaceutical sales. The groups were comprised of 44% male and 56 female. Of the groups, 50% were Millennials, 43% were Gen X and 7 percent were Baby Boomers. Occupations surveyed were inside sales reps, field sales reps, directors of sales and sales executives and managers.

In the survey, 50% of pharmaceutical sales reps selling controversial products said they believe the legalization of medical marijuana alone will have a positive impact on their jobs. Products considered controversial were those sometimes negatively portrayed in the media, such as opioids and medical marijuana. The survey found that 62% of reps selling non-controversial products also believe medical marijuana legalization will help their careers.

Even though they believe the opioid crisis and legislation and legalization of medical cannabis will have a positive impact in the future, 89% of pharmaceutical sales reps said they’re nonetheless the biggest challenges facing the industry today.

Another interesting finding of the survey was that only 30% of sales reps who responded think their industry is providing essential products.

Medical marijuana has become a critical focus of the pharmaceutical industry since it’s currently legal in 29 states. An Arcview Group report in September 2017 predicted $24.5 billion in medical marijuana sales by 2021.

Opioids have left a black eye on the pharmaceutical industry, who are now trying desperately to regain the public’s trust. A Blue Cross Blue Shield report on opioids found that addiction had increased by 493% between 2010 and 2016. The federal government, spurred on by this epidemic, is working to enact stricter laws. This has fueled speculation by some in the pharmaceutical industry that those laws and medical cannabis use will go hand-in-hand. Among sales reps who sell controversial products, 38% of respondents believe the opioid legislation will have a positive impact on their jobs, while 43% of those selling non-controversial products think so.

Nearly all of those surveyed thought lack of proper education of controversial products has had an impact on their sales. They stated that doctors should be the main providers of information on medical marijuana, but over half of them—64%—said it’s important that sales reps provide educational resources to the public. 68% believe it’s up to managers and other leaders to educate doctors.

Almost 70% of the pharmaceutical sales reps report that social media attention is the biggest obstacle to their selling controversial products, and 6% say other news and media are to blame.

Negative publicity continues to surround the pharmaceutical industry. Sales reps are being advised in the survey’s report to make educating the public, not selling to them, their top priority. This could be helpful to the cannabis industry, provided that the information they relay is accurate.


Peggi CloughPeggi CloughFebruary 28, 2018
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4min8681

The U.S. Cannabis Spot Index averaged $1,562 per pound in 2017, a 13 percent decrease from $1,789 per pound in 2016, according to Cannabis Benchmarks Annual Review & Outlook: 2017-2018 Edition.

The Index declined only 6 percent throughout 2017, opening at $1,532 and closing at $1,436, in contrast to the 20% decline seen in 2016.

Wholesale market for the cannabis flower was $5.7 billion in 2017. For reference, the wholesale wheat market was $7.8 billion. Volume grew by 22%, from 3 million pounds in 2016 to 3.7 million pounds in 2017.

Lowest prices for the year were again seen in November, with the national composite price down 11.6% in Q4 from Q3. Favorable weather conditions led to fall bumper crops, and the combination of outdoor and greenhouse flower hitting the market at the same time helped fuel this in 2017.

The lower level of spot price uncertainty led Cannabis Benchmarks to investigate the volatility of other agricultural commodities. They found that cannabis was in line with the others and that only one, wheat, increased. They believe cannabis volatility decreased in part because of fewer “regulatory and economic surprises.” This may also hold true for Colorado, Washington, and Oregon, although foreseen regulatory actions can greatly affect regional prices.

While it doesn’t have a huge impact on the market, greenhouse flower accounted for just under one-third of all volume traded in 2017, staying at the same volume as the second half of 2016. This is significant because it accounted for less than one-fourth of all volume in the first two quarters of 2016.

Warehouse flower contract prices appear to be trending downward. In 2017, 40% of individual transactions involving warehouse flower were greater than $2,000 per pound, down from 45% in 2016. When looking at flower selling for greater than $1,500 per pound, the numbers were even lower, 69% in 2017 as opposed to 80 percent in 2016.

The market also saw more agreements that were not involving product exchange, only financial exchange, such as futures, swaps, and options.

In the first half of the year, wholesale prices increased in California, but the bounteous fall crop proved to be too overwhelming to maintain the increase, and wholesale prices fell. Wildfires in the fall ravaged dozens of grow sites; however, they didn’t have an effect on supply statewide.

Colorado’s average Spot Index for 2017 was almost 30% below 2016’s Spot Index, continuing the downward trend that started in early 2016. The state has such an oversupply of cannabis that quality and other differentiating criteria have ceased to have much significance.

Wholesale prices in Oregon fell dramatically in 2017, less than 18 months after the state legalized sales to adults. A good growing season, lack of production limits and an increase in commercial growing knowledge were all factors in the decrease.

In the last weeks of 2017 and early into 2018, Washington’s wholesale prices were the lowest seen in any state, historically. This trend is being closely watched in 2018.

Cannabis Benchmarks is a division of New Leaf Data Services and provides wholesale price assessments in weekly, mid-year and annual reports. Their Annual Review & Outlook: 2017-2018 Edition offers wholesale market data, overview and analysis, and is available for purchase.


Peggi CloughPeggi CloughFebruary 13, 2018
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5min8730

Valentine’s Day spending by U.S. consumers is projected to reach $19.6 billion in 2018, according to an annual survey by the National Retail Federation (NRF) and Prosper Insights & Analytics. That’s up from $18.2 billion spent last year.

Cannabis shopping for the holiday has increased dramatically as well. Colorado-based point-of-sale software company Flowhub compared last year’s weekend sales before Valentine’s Day versus this year’s and reported a 22% increase in total sales year-over-year. Edible sales jumped a whopping 42% over last year

“With the holidays behind them and the winter months dragging along, consumers are looking for something to celebrate this time of year,” said NRF President and CEO Matthew Shay about overall Valentine’s spending. 2018 looks to be the second highest spending year in the survey’s 15-year history, with the most having been spent in 2016—$19.7 billion.

Valentine’s Day was the fourth most popular holiday for cannabis use last year, according to Eaze’s 2017 State of Cannabis report. The report covers current cannabis trends in California and is published annually. It showed use increased across all major holidays in 2017.

Not just for men, either. Eaze also reported that women’s use of cannabis is increasing, from 25 percent of the total users in 2015 to 35 percent in 2017. Their monthly spending increased last year by 20 percent too. Monthly spending on cannabis is up in all age groups from where it was in 2016.

The gift market and choices for cannabis users have grown exponentially in the past few years. The number of products available on Eaze increased by 323 percent from 2016 to 2017. Last year was the first that saw ready-to-use product use surpass flower use.

In 2017, women were more apt to buy cannabis-related health and wellness products, while men were inclined to choose concentrated forms of cannabis.

Non-cannabis Valentine Statistics

Of the 55% of Americans celebrating Valentine’s Day this year, most plan to buy for their spouse or significant other. They expect to spend an average of $88.98, accounting for $12.1 billion of the total spending. The next largest group receiving gifts is family members, averaging $25.29 each, for a total of $3.5 billion.
Many retail stores are running holiday specials and promotions this week in preparation for Valentine’s Day, and cannabis companies and dispensaries are no exception. Be sure to keep this in mind as you finish your Valentine’s Day shopping.

Coworkers shouldn’t expect to fare well this Valentine’s Day: consumers only plan to spend an average of $4.79 on them, while spending $5.50 on pets.

The biggest spenders are in the 25-34 age group; they plan on shelling out an average of $202.76. Almost half of them—41 percent—plan to give gifts of experience, such as concert tickets or vacations.

Jewelry tops the gift categories. It’s expected to be given by 19 percent of buyers, for a total of $4.7 billion. Two other traditional holiday favorites, flowers, and candy will account for $2 billion and $1.8 billion, respectively.

Retailers still have a chance to make sales from those not celebrating the holiday: 27 percent of people in this group plan to observe the day in some way, either by spending it with friends and family or by splurging on themselves.

“Valentine’s Day has become a holiday consumers take advantage of not only to spoil their loved ones but themselves,” Prosper Insights & Analytics Executive Vice President of Strategy Phil Rist said.

 


Peggi CloughPeggi CloughFebruary 2, 2018
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4min9760

A University of Georgia study has found that the use of medical marijuana significantly lowers the costs of Medicare’s Part D program, due to the reduced demand for prescription drugs.

The study, conducted by UGA researchers W. David and Ashley Bradford, looked at prescriptions filled by Part D participants from 2010-2013, which totaled more than 87 million observations. They then checked costs in states where medical marijuana is legal and narrowed the search to nine conditions for which marijuana can treat, including anxiety, depression, glaucoma, nausea, pain, psychosis, seizures, sleep disorders and spasticity.

The results showed that if every U.S. state were to legalize cannabis, $468 million would be saved in Part D costs. That’s a $303 million increase over the money that was saved in the 18 states where medical marijuana was legal in 2013.

“When marijuana becomes a medical option for people, then their use of prescription drugs falls,” said David Bradford, one of the authors of the study. “We think that the only plausible mechanism is that people are shifting at least in part toward using marijuana as medicine.”

Of the categories studied, it was found that annual prescriptions decreased by 3,645 doses per doctor for pain and by 1,280 doses for depression. This is particularly noteworthy, considering the enormous increase of opioid use for chronic pain in the U.S.

The only condition of the nine that didn’t show a decrease in prescription costs was glaucoma. This is most likely because the eye pressure caused by glaucoma is only reduced by cannabis for one hour, so additional medication is usually needed.

The researchers also did an analysis on drugs that are not associated with cannabis treatment, such as blood thinners and antibiotics, and did not find a difference in the prescription drug patterns between states with and without legalized medical marijuana.

Part D is Medicare’s prescription drug program funded by the federal government to lower the costs of drugs for Medicare recipients. It’s only available to people age 65 and older and accounts for about 20 percent of total U.S. healthcare costs. The Part D budget was $103 million in 2013, so the savings shown in the study would be about one half of a percent.

Still, it’s enough of a savings to spur the Bradfords to now expand their research to include Medicaid prescription data, as the drug savings for the entire population could be much greater. The Bradfords note that “previous studies have suggested that Medicare patients may make up a relatively small percentage of people who use medical marijuana and that only 13–27 percent of people who used medical marijuana were ages 50 and older.”

Marijuana is currently legal for medical purposes in 29 states and in Washington, D.C., though specific state laws vary. The federal government still classifies it as Schedule 1 substance, however, so Medicare refuses to cover the cost even if it’s recommended by a doctor. Since it would violate federal law, doctors may not prescribe cannabis; they may merely recommend or suggest its use, instead.

Even though the Food and Drug Administration (FDA) hasn’t approved the use of marijuana for medical uses, it has approved three cannabinoid-based medicines that are derived from synthetic sources. This could indicate at least some acknowledgment by the FDA of the benefits of medical cannabis.


Peggi CloughPeggi CloughJanuary 31, 2018
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4min10570

The 2018 Cannabis Price Index has been released by automatic cultivator device company Seedo, revealing the cost of marijuana in 120 cities worldwide. The report also indicated the amount of tax revenue cities could gain through legalization.

Thirteen U.S. cities were featured in the study, which was comprised of 120 cities worldwide. The cities included those where marijuana is legal, partially legal, and illegal. The price of cannabis was calculated per gram and total consumption in metric tons. The revenue potential was figured for a city were it to tax at the average U.S. marijuana rate and the rate of the most popular brand of cigarettes.

In the U.S., Washington, D.C., was found to have the most expensive cannabis in the U.S., at $18.08 per gram, while Seattle was found to have the lowest price at $7.58 per gram. The legalization of cannabis in a city did not appear to have an impact on its price.

New York was found to have the highest consumption rate of the 120 cities, so it was not surprising that it could potentially have the highest tax revenue gains if cannabis was taxed at the average U.S. marijuana rate.

“This study has revealed some incredible insights into the kind of tax revenue that legalizing weed could generate,” says Uri Zeevi, chief marketing officer at Seedo. “Take New York City for instance, which has the highest consumption level in the study at 77.44 metric tons of cannabis per year. If they taxed marijuana at the average U.S. cannabis tax level, the city could make $156.4 million in potential tax revenue per year. This is equivalent to providing nearly 3 months’ worth of free school meals to every single public school kid in New York City.”

Even cities that fell lower in rank could see significant tax revenue through legalization. Chicago could gain $52 million annually if cannabis were taxed at the average marijuana rate, and nearly $120 million if taxed at the same rate as cigarettes.

The 2018 Cannabis Price Index was put together by Seedo, producer of an automated hydroponic growing device that allows users to grow cannabis or other plants from their home. The purpose of the report was to show the need for continuous legislation and to show trends in cities that have already legalized cannabis.

“That illegal cannabis use is so high in countries that still carry the death penalty, such as Pakistan and Egypt, those in power ought to see how desperately new legislation is needed,” said Zeevi. “By removing the criminal element from marijuana, governments will then (be) able to more safely regulate production, take away power from underground gangs, and as we’ve shown in this study, generate huge tax revenues.”

The fifth highest consumer of cannabis worldwide, Cairo, could gain the most in revenue if it taxed marijuana at the U.S. cigarette tax rate. It could earn close to $385 million dollars a year if cannabis were legalized there. Its average price is $16.15 a gram, the twelfth highest in the world.

Not surprisingly, Singapore, the world’s lowest consumer of marijuana, would reap the least tax benefits if legalized, less than $250,000 annually.

Worldwide, it was found that the most expensive cities for cannabis, where it happens to be illegal, were Tokyo, Seoul, and Bangkok. Least expensive were Asuncion, Bogota, Quito, where it is partially legal, and Jakarta, where marijuana possession can be punishable by life in prison or death.



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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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