According to a study by the University of California Agricultural Issues Center, California’s recreational cannabis market could be worth more than $5 billion; however, the benchmark will only be achieved once cannabis consumers fully embrace the state’s legal market, the Los Angeles Times reports.
According to the study, about 29 percent of cannabis consumers may, at first, stay in the illicit market to avoid the costs of new regulations, which will add 15 percent to retail values. The new regulations include taxes and testing and tracking requirements, which Lori Ajax, director of the state Bureau of Marijuana Control, said might prevent consumers from entering the legal market on day one because of the price increases.
“It’s going to take some time,” Ajax said in the report. “While it’s unlikely that everyone will come into the regulated market on day one, we plan to continue