The Golden State’s cannabis industry is morphing, but good things are on the way
2022 looks to be a year full of opportunities for many of the marijuana businesses located in different cities in California. Many local governments are opening up new adult-use cannabis licensing opportunities this year, either because they are banking on an increase in the number of commercial permits available, or they are embracing the legal marijuana industry for the first time. Whatever the case, it appears that entrepreneurs who want to be part of this industry may find a gold mine in the Golden State.
Certain cities are conducting the various analyses necessary for new markets in the future through the drafting and/or development of marijuana ordinances. The launch of these new marijuana markets and business opportunities comes at a time when cities across the state are anxious to capture more tax revenue after negative factors such as the pandemic drained public coffers.
There is no doubt that this modification that remains in progress is a positive indication of the state’s struggling marijuana sector, which continues to prohibit in the vast majority of cities. At the same time, has the need to fight a thriving illicit market. Harry Kazazian, president and CEO of 22Red, a Pasadena-based marijuana brand, said, “Expanding doors is critical if we expect the legal cannabis market to survive. Communities that shut out legal retail stores will be serviced by the underground market.”
It appears that retail expansion is playing a major role this year. For example, Madera, located about 25 miles north of Fresno, is issuing its first eight retail licenses, including two designated for social equity applicants.
San Diego, an underserved market considering its large population, is among several California cities with established commercial cannabis programs also looking to expand. The Golden State’s second-largest city appears poised to lift several zoning restrictions, resulting in retail licenses being able to expand by nearly 40%.