MAPS - California's Underground Marijuana Market Flourishes: Which Companies Remain Resilient Amid Illicit Competition? | Benzinga
Sales Decline And Market Dynamics
Recent market updates suggest a decline in California's cannabis sector despite a consistent number of licensed storefronts.
Sales dropped 5% sequentially and year-over-year to $1.05 billion in Q4 2023, with taxable sales shrinking by 8% to $1.25 billion. Early 2024 figures indicate a continued downturn, challenging retailers further.
While wholesale prices rose, retailer margins tightened significantly, reflecting decreased profitability across product categories.
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Financial Outlook
Amidst this decline, leading brands have established significant market presence and financial backing, positioning them for potential consolidation.