Over the next 4 years, Arizonans are expected to double their spending on medical marijuana. New Frontier Data and Arcview Market Research released the projections saying that by 2020, $681 million in medical marijuana should be sold annually in Arizona.
These projects are due to the expectations of medical marijuana prices dropping, according to Tucson.com. In 2017, 31 new medical marijuana dispensaries could open, which would make for a total of 129 Arizona dispensaries.
In the report, it states that, “Operators interviewed stated they have seen wholesale prices fall from over $3,500 per pound to less than $1,800 in some cases, with continued declines expected.”
It also says that, “Product diversion from neighboring adult use markets will apply downward pressure on retail prices as dispensaries try to remain competitive against the illicit market.”
California and Colorado recreational markets are part of the reason for the decline in medical marijuana price in Arizona.
Further in the report, it says, “While the lower prices will benefit patients, they will add to the financial challenges already facing operators in the highly competitive market.”
The defeat of Prop 205 may help the increase in medical marijuana sales, according to John Kagia of New Frontier Data. Kagia said, “Over time, the population overall becomes more familiar with medical cannabis.”
Those that have no experience with using marijuana are not considering it as an option.
Kagia said, “But because of the conditions they’re suffering from are introduced or exposed to it by their physicians and then consider using it for the first time in this medical context.”
Doctors are also likely to shift attitudes toward medical marijuana. Those that were previous against medical marijuana may start recommending it to their patients.
Kagia said, “They start to hear from their colleagues and from their patients about the types of relief that patients have been getting from debilitating conditions.”
Kagia also projects that the Trump administration, even with Sessions as AG, won’t affect the medical marijuana industry. They’re likely to focus on recreational marijuana if anything. He stated, “Given the broad and very robust public support for medical cannabis legalization…there’s really very little political capital to be gained by going after the medical side of it.”