From being banned to becoming a multi-billion dollar industry, cannabis has experienced it all. The market saw a boom because of the legalization of marijuana for medical and recreational purposes.
The new green revolution in different parts of the globe has opened up tremendous investment and employment opportunities. Being a passionate entrepreneur, the opportunity in the cannabis industry is up for grabs for you.
During the pandemic, the sales of cannabis have skyrocketed. Also, with an increase in acceptance of cannabis for medical and recreational purposes globally, it is expected that legal cannabis sales will reach $35 billion by 2025.
Staggering numbers, right?
And due to the COVID-19 impact, people want cannabis-based products delivered to their doorsteps in an agile and secure manner. But most companies find it challenging to meet the rising consumer demands, manage on-time deliveries, and optimize multi-deliveries for cannabis consumers.
Talking specifically about online cannabis delivery businesses, there’s a lot of money to be made by business owners only if they can meet the demands of consumers and the cannabis industry.
So, before you jump toward starting your online cannabis delivery businesses, we did some research work for you. We have highlighted the best cannabis delivery business statistics & trends for 2022 so that you get a head-start from your competitors.
Table of Content
- Cannabis Delivery Business Statistics
- Cannabis Delivery Business Trends
- Emphasis on Delivery Routing and Optimization
- Upper Route Planner’s Role in Your Success
Cannabis Delivery Business Statistics
Cannabis delivery business statistics have outshined every other leading business industry. Even we were shell shocked after go-through the exploding cannabis industry statistics. Here’s what we found out in our research:
1. Cannabis market growth statistics
The cannabis industry has been rising in both the medical and recreational sectors. It has an above-average growth rate compared to other industries, and it’s just the start as more states and countries are opting for cannabis legalization soon. The growth statistics indicate the rising demands in the pandemic and post-pandemic periods.
- The United States will witness a $100 billion dollar cannabis business growth by 2030.
- During the pandemic period (2019-2021) the cannabis industry’s trends showcase a rise of 21% annually.
2. Cannabis market size stats
The surge in cannabis consumption has forced multiple companies to study the market potential, and that has helped to deliver a more transparent cannabis industry market size.
- The highest cannabis sales in the United States were witnessed in California ($3.8 billion), Michigan ($1.21 billion), and Colorado ($1.7 billion). (SOURCE)
- The CBD or Cannabidiol will be valued at $22 billion by the end of 2022.
- The estimated cannabis industry’s contribution to the United States economy is around $130 billion.
3. Cannabis sales stats
Most global businesses were hammered down by COVID-19, but the cannabis industry became stronger than ever. The cannabis sales numbers can give an idea about the rise of the industry.
- The sales of the legal marijuana market have outshined combined sales of organic products and Oreos.
- New York and San Francisco deemed cannabis businesses essential during the stay-home advisories in March 2020.
- The average spending by self-identified cannabis consumers on their purchase is around $25 to $50.
- An ounce of premium quality marijuana in the United States is $320 and is one of the most demanded products.
4. Cannabis legalization support stats
Marijuana is still considered a banned substance on the federal level. Still, most of the states in the United States have legalized it for recreational and medical purposes. Businesses have to integrate compliance management software to adhere to the protocols set to minimize the abuse of the substance. But there’s still a divided audience view for the cannabis legalization topic. Have a look:
- Marijuana legalization is supported by 62% of Americans.
- More than 55 million Americans are cannabis consumers.
- Out of 36 states, 15 have allowed adults to use recreational cannabis.
5. Cannabis recreational and medical usage stats
Many people believe that marijuana should be regulated like cigarettes and alcohol, rather than being banned. The Netherlands is one of the great examples of imposing high tax rates on marijuana. Most states and countries have decriminalized cannabis consumption for medical and recreational purposes. Let’s look at the consumption stats for both:
- Women consume more cannabis compared to men, as 53% of women tried it compared to 42% of men. Also, there has been a rise in women-owned cannabis businesses.
- By the end of 2022, recreational sales can double compared to the medical usage of cannabis.
- A custom cannabis consumer survey said that 53% of the cannabis consumers say it reduces their OTC pain treatment, 71% say they consume marijuana for wellness purposes.
Now that we are aware of the vital statistics of the cannabis industry, it’s clear that there’s a lot of opportunity waiting for new-age tech-powered businesses to tap the potential of the cannabis industry.
Look at the trends that have been observed in recent times to help you strengthen the depth of your research.
Cannabis Delivery Business Trends
There are noticeable trends in the cannabis industry that can allure you to invest in the sector and make millions from the rise in consumption and popularity of marijuana and CBD globally.
1. Focus on cannabis research
The legalization of cannabis has resulted in many researchers and companies diving deep into the medical uses of the substance and exploring new horizons that can be unlocked.
There have been findings that some compounds in cannabis have anti-cancer properties and help in minimizing pain. Much research has been ongoing, and scientists are working on developing new components from the plant that can have a stronger anti-cancer effect.
On the other hand, it’s found that CBD (Cannabidiol) has antibiotic effects that can cure infections with antibiotic resistance. With more research being conducted at different world centers, new medical and daily use properties and products can likely be developed soon.
2. Companies scaling to new markets in the cannabis industry
Amidst multiple roadblocks in the supply chain, global pandemic, and fight to legalize cannabis on the Federal front, cannabis is still immersed as a growing industry. With the introduction of new markets, established businesses are expanding to replicate their success.
Businesses understand the changing demands of the consumers and focus on strengthening the buyer experience and the supply chain of cannabis. The square footage production area of cannabis has doubled in the last few years, and the introduction of multiple technologies can be witnessed for strengthening the cannabis business ecosystem.
Many new players have emerged strongly because of changing consumer behavior and shift towards the hassle-free online purchase experience. Businesses are looking to streamline their cannabis delivery with quick and secure deliveries.
3. Acceptance of cannabis globally
Slowly and steadily, cannabis is being accepted and legalized by different states and countries globally. Multiple activists are working hard and putting in federal legalization efforts, and there are chances that there will be a positive impact on the expansion of the cannabis industry.
A comprehensive medical marijuana bill and other laws legalizing cannabis can be enacted in multiple states and a stepping stone towards complete legalization.
Although cannabis legalization varies from country to country, public support for cannabis is also increasing. The awareness and changing mindsets of the people caused a positive eruption for the industry. Rigorous research and discovery of medical benefits of the plant can result in the global acceptance of cannabis soon.
The expansion of new markets will open up new horizons for cannabis-based businesses. A solid supply chain can play a vital role in business expansion with the changed buying behavior.
4. Production efficiency
With the decrease in wholesale outdoor and indoor cannabis flower prices, businesses have focused on achieving maximum efficiency.
With the diminishing profit margins, cannabis delivery businesses are serious about cutting operational costs and maximizing production and delivery efficiency. The introduction of new tools and adaptation towards automation in the business workflow is a game-changer for better analysis and tracking.
Logistics and transportation are the most critical areas for achieving maximum efficiency with the cannabis delivery business.
Emphasis on Delivery Routing and Optimization for Cannabis Businesses
Effective route planning is a time-consuming process that last-mile delivery businesses use to make secure and quick deliveries to their destination. But with effective delivery routing and optimization, you can monitor and minimize the delivery cost of cannabis products and increase the effectiveness and productivity of your workforce.
You can strengthen your logistics and transportation and match the changing consumer behavior of the cannabis market post-pandemic period and deliver same-day deliveries.
While the traditional route planning and optimization process were tedious and time-consuming, using a dedicated modern route planning software is the best choice for your cannabis delivery business.
While most businesses are dependent on Google Maps for their route planning app, you can take the extra edge and integrate a dedicated route planner to handle multiple orders of your business.
Adaptation to future-proof solutions can result in a more professional and result-oriented approach in the industry for your online cannabis business.
But which route planning tool is best suitable for your requirements and goals?
Upper Route Planner
A Simple-to-use route planner that every one is talking about.
- Save up to 95% of planning time
- Save up to 40% of time on the road
- Plan 500 stops at once
No credit card details required
Yes, the cannabis business is profitable because of the global legalization drive and the rise in awareness and popularity for its medical and recreational use. The industry is yet to reach its potential peak, and there are an abundance of opportunities for different cannabis-based businesses to hit a multi-million dollar mark.
Yes, the cannabis business is trending like never before. The impact of the global pandemic has been positive for the industry, and it has created an enormous business space where cannabis businesses can cash in and deliver the modern-day consumer demands.
The cost to start a cannabis delivery business is subjective and based on the team, location, and business model. You need to pay for the legal licensing, lawyers, permits, transportation, and product acquisition. The average cost for setting up an offline cannabis-based dispensary can be around $80,000 to $100,000. Based on your niche, the pricing can vary.
The ideal business model depends on multiple factors. From your interest to how you perceive the opportunities, you can finalize a business plan for your cannabis-based business from benefits to your resources. Based on these factors, you can start a cannabis delivery business, eCommerce store, B2B legal cannabis business, cannabis dispensary. You also need to decide whether you want to operate online or set up an offline store.
There are multiple ways you can kickstart your cannabis delivery business, but here are a few essential points you need to consider:
- Understand the customers, competitors, industry
- Setup the basics of your cannabis business
- Finalize the legalities, procurement, business plan, delivery setup
- Emphasis on logistics and transportation
- Deliver quality customer experience
Upper Route Planner’s Role in Your Success
Upper Route Planner is the ideal tool for your cannabis dispensary, cannabis delivery business, eCommerce store, B2B legal cannabis business, and vertically integrated cannabis company to handle your delivery problems.
You need to provide timely deliveries to customers who use cannabis-based products for medical purposes. Upper Route Planner helps you eliminate manual route planning, add automation, and promote contactless deliveries of cannabis products.
- Save up to 95% of your planning time
- Serve 40% more customers by optimizing time spent on the road
- Get an eagle-eye view of your delivery operations
- Save fuel and 95% of your planning time
- Reduce cost-per-delivery and increase overall profit
- Scale delivery output
- Advance route scheduling
- Enhance customer experience
All these factors can play a decisive role in the success of your online cannabis delivery business. So what’s making you wait?
Get instant access to our 7-day free trial and hands-on experience with the software. Transform your cannabis-based business and unlock the market opportunities in the offering.