By / January 27, 2020

The three types of cannabis businesses in California

As part of the recent cannabis industry boom, Examiner, a local newspaper in San Francisco, gave a brief account of the most successful cannabis businesses in California following legalization.

According to Euromonitor data, during 2019, cannabis businesses obtained more than $150 billion in profits, representing a huge opportunity for success for dozens of entrepreneurs around the world. In 2018, the CBD market in the U.S. achieved a total sales volume of $367 million. This represents an increase of 40% over the previous year.

CBD and cannabis products on both sides of the Atlantic are growing in popularity and legislators are becoming more friendly toward the sector’s development.

Get the latest industry news on CBD products with the mobile app. This app is the leading source of financial, legal and B2B news for the cannabis and CBD industry. With the app, you can view the complete collection of articles and commentary on cannabis and CBD.

Cannabis businesses in California gain success after legalization

Cannabis regulation promoted a number of factors that gave advantages to certain groups of entrepreneurs who started rather peculiar businesses. Such ventures now set the standard for the industry.

First, are the so-called “all-in-one shop” cannabis businesses, where cannabis lovers are guaranteed a pleasant shopping experience. This is because the legislation makes it possible for dispensaries to serve and allow the consumption of marijuana and its derivatives in certain establishments.

These sites must comply with the fire and safety codes of each region. In states such as California, there are 46 cannabis businesses that have this type of permit.

Cannabis businesses in California go along with the culture

Hollywood sign representing cannabis businesses in California
In some places, cannabis is seen as another element of Californian culture, especially in places like West Hollywood. (Source)

So far, there are 47 requests to open cannabis businesses in California where it is possible to learn, buy, consume, and share cannabis in one go.

Such is the case with the West Hollywood brand, which has bars and other facilities, where cannabis is seen as another element of California’s culture and social fabric. A new wave of cannabis 2.0 products is expected to be launched by the end of the year which will pump the market with new potential.

Cannabis tours in San Francisco

Taking advantage of the influx of cannabis tourists, several cannabis businesses in California began offering unique tours to show visitors everything from the planting to the processing of cannabis.

The tour includes visits to cannabis farms and dispensaries, where tourists have the opportunity to experience various activities.

Such is the case in Sonoma and Napa Valley, where cannabis has been mixed with wine culture. For this, they offer guided marijuana and wine tours.

These new types of cannabis businesses in California aim to open the door to the gastronomic sector that wishes to experiment with cannabis.

Some cannabis businesses in California specialize in deliveries

delivery person representing delivery cannabis businesses in california
Cannabis delivery services expands a business’s clientele and is a popular business model in California. (Source)

As for the third type of business in California, it is related to the previous ones, as it could represent support for sales. This is the cannabis delivery service business.

The explosion of this market in San Francisco shows how much demand there is for cannabis businesses in California since legalization. According to official figures, the implementation of Proposition 64 saw a 6% increase in demand.

Cannabis delivery services address many issues, from on-site delivery and expanding the options available to its users, to specialized management for medical marijuana, based on the pain and conditions of the applicants.


(Featured image by Tim Foster via Unsplash)

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