This month, the voters of Arizona rejected Proposition 205, which would have allowed for the development of an adult use cannabis market starting in 2018.

This decision limits the state’s total cannabis market size, though it is expected to encourage steady growth in the state's already established medical cannabis market. Projected sales under the current medical market are expected to reach $681 million by 2020.

If Prop. 205 had passed, the total market size projected would have been $1.24 billion by 2020. The difference between these two scenarios is lost potential market sales of $556 million.

On Election Day 2016, Arizona was the only state with a legalization measure that did not pass. The failure of Arizona’s Marijuana Legalization Initiative (Proposition 205) was a notable loss for the cannabis industry on a day which saw the industry’s biggest electoral victories.  Passage of Prop. 205 would have provided a symbolic victory for cannabis in the historically socially conservative state, while creating a market with an attractive structure for investors and entrepreneurs. However, with the measure’s failure, Arizona will remain a highly competitive medical-only market for the foreseeable future. This report will outline how the following factors will affect Arizona’s role in the industry.

1.      Arizona’s Hot Climate

2.      Growth in Competition in the Medical Market

3.      Market Consolidation

4.      Cannabis Diversion into Arizona

5.      Big Pharma

As a part of the continuous effort to improve our service, we are pleased to announce that our digital industry reports will now be printable through Vitrium (formerly known as ProtectedPDF). We are making this change based on market feedback from customers like you. The process of getting up-to-date industry information out in the easiest and fastest way possible is our priority. 
Please note that this policy does not apply to The State of Legal Marijuana Market 4th Edition, and The Mid-year Update of The State of Legal Marijuana Market 4th Edition.