COLORADO SPRINGS, COLO. --
Medical marijuana is now a $1.7 billion industry and continuing to grow. A new report released Thursday by See Change Strategy LLC, predicts marijuana markets will double in the next five years and may reach $8.9 billion.
Colorado is one of 15 states with laws giving patients access to medical marijuana. Colorado, along with California, make up 92 percent of medical marijuana sales nationwide. According to the Colorado Springs Business Licensing Department, there are 75 medical marijuana dispensaries in the city and 25 in El Paso County.
Altitude Organic Medicine didn't want to give us their financial specifics but said 10-12 people a day can bring in $1,000.
"There's so many dispensaries up and down the street, so we're like the Walmart - you can get anything you want here," Luther Bonow with Altitude Organic Medicine said.
With so many dispensaries in town, stores are competing for business with a marijuana price battle. An eighth of marijuana used to cost $60, but now the average is $35.
The competition is added pressure for the Healing Canna. Between 30 and 40 people come into their store every day, but their business is operating in the red.
"The initial investment is huge, our licenses cost probably $15,000 and our patient viewable grow is $15,000. There's a lot of money to recover," Mark Eccher with Healing Canna said.
The report said 25 million people are eligible for medical marijuana in the U.S., but there are only about 730,000 patients. That's only three percent of those eligible. The report also said Colorado is the fastest-growing and most business-friendly cannabis market.
Survey of retail and wholesales medical marijuana operators:
- 63% have been in business for less than a year.
- Owners range from the unsophisticated to the highly experienced.
- 34% cite regulatory compliance, not customer demand or securing supply, as the number one challenge.
- 24% cite securing financing as the most pressing business challenge.
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