Rapid change in public acceptance of marijuana is creating numerous business opportunities for retailers in the US and around the world. D&B’s new Marijuana Stores profile, one of several new profiles on high-growth industries added by the D&B Editorial team, explores the challenges and opportunities facing this dynamic, emerging industry.
The Marijuana Stores profile provides insight into the industry’s current and future revenues. Interested players are ramping up quickly to meet growing demand in the US and in other countries where cannabis is legal for recreational and/or medical uses. While the US is currently the main growth market for marijuana stores, opportunities are emerging in nations such as Canada and Spain.
Industry opportunities include:
Investor Interest — A number of seed-fund investor groups have established operations geared towards new cannabis and cannabis-serving businesses. Seattle-based Privateer Holdings’ $75 million fundraising round in 2015 brought the first major institutional industry funding via investment firm Founders Fund.
Some of the challenges companies face in exploring opportunities in the retail marijuana industry include securing financial resources, connecting with suppliers and logistics providers, and establishing IT and security systems. Public opinion and the political climate in many regions present barriers to retailers, as does the wide variance in laws governing marijuana use in US states and international countries.
Key business challenges facing the industry include:
Access to Banking Services — Most US banks won’t serve businesses in the industry because banks are regulated on a federal level. This forces dispensaries to operate largely in cash. While a growing number of banks are working with marijuana companies under new federal guidelines issued in 2014 (more than 300 banks in 2016 compared to about 50 in 2014), most marijuana businesses do not have accounts, according to Marijuana Business Daily.
D&B’s Editorial team regularly adds new industry content while constantly updating existing profiles on more than 500 industries. Recently added new profiles of other fast-growing industries include Casino Hotels and Mobile Food Services.
D&B industry profiles provide insight to help guide sales and marketing professionals in their business decisions. The profiles contain comprehensive financial benchmark information as well as industry growth forecasts in an easy-to-digest format. Call-prep sheets, an abbreviated version of the profiles, provide a quick way get up to speed on an industry. D&B industry content is available in Hoover’s, First Research, D&B Direct, and other D&B products that serve enterprise and small business professionals.
Anne Law has been a member of the D&B editorial department for more than a decade, providing content for the Hoover’s and First Research products. She currently covers the health care and insurance industries for First Research. For industry news, follow Anne on Twitter.