California

Market Map

California
Cannabis Market

California Cannabis Market At-A-Glance

Overall Rating: B+

With its high population and cannabis-friendly culture, California is by-far the largest cannabis market in the US. This potential is tempered by intra-market competition and a regulatory/licensing and tax structure that can be difficult to navigate and turn a profit.

Medical Use: Yes

Adult Use: Yes

Market Potential

A+

High population/tourism make this the largest cannabis market in the US.

Licensing

No state-level caps but dictated at the jurisdiction level. Licensing fees can be high (depending on revenue). Currently long delays in license approval.

Competition

Well-known as the largest market, very competitive. However, broad geography and multitude of markets gives opportunities to many.

Tax/Regulatory Structure

California has one of the highest cannabis tax rates in the US.

California Cannabis Details

Population (Rank)

39,700,000

Size/Density

163,696 sq. miles

#11

Medical Cannabis?

Yes

Legalized in 1996

Adult-Use Cannabis?

Yes

Legalized in 2018

2018 Medical Sales

2022 Projected Medical Sales

$294,000,000

$133,000,000

-45%

2020 Adult Use Sales

2022 Projected Adult Use Sales

$4,101,540,638

$7,600,000,000

+53.9%

Regulatory Agency

Bureau of Cannabis Control

http://bcc.ca.gov

# of Dispensaries (allowed/issued)

N/A

# of Cultivators (allowed/issued)

N/A

# of Manufacturers (allowed/issued)

N/A

# of Testing Labs (allowed/issued)

N/A

Vertical Integration?

Allowed but complicated rules in effect.

Residency Requirements?

None

Social Equity?

Yes, but on a jurisdictional/city level

Cannabis Taxes

Combined Tax Rate

23-38%

Excise Tax

15%

Retail Sales Tax

7.25%

Cultivation Tax

Flower: $9.25/oz | Leaves: $2.75/oz

Licensing Fees (per year)
^{*Varies based on gross revenue}

Cultivator

$1,205 - $77,905

Retailer

$2,500 - $96,000

Distributor

$1,500 - $240,000

Distributor (Transport/Self-Distribute)

$200 - $1,000

Microbusiness

$5,000 - $300,000

Testing Facility

$3,000 - $112,000

Application Fees

Retailer/Distributor/Microbusiness

$1,000

Event Organizer

$1,000

Temp. Organizer

$1,000

Physical Modification of Premises

$500

Cultivator

$135 - $8,655

Manufacturer

$500 - $1,000

04/05/2021

Market Map

California Cannabis Market At-A-Glance

California Cannabis Details

Cannabis Taxes

Licensing Fees (per year) *Varies based on gross revenue

Application Fees

Licensing Fees (per year)
^{*Varies based on gross revenue}