goldenhour responds to the “California Cannabis Market Outlook 2024”

California’s Department of Cannabis Control has released a new report prepared by ERA Economics, LLC, that found the state produced at least 5x more illegal cannabis than legal.

“California Cannabis Market Outlook 2024” argues that the legal industry faces challenges but still holds signs for growth. Wholesale cannabis prices have fallen by more than 50%, and retail prices have fallen by 36% since 2020. At the same time, licensed production has nearly doubled, and the number of units sold at retail has doubled for almost all product types. 

In response, Goldenhour Collective CEO David Spradlin issued the following: 

“The California Cannabis Market Outlook confirms what those of us in the legal cannabis industry have known for years - we're operating in a profoundly unbalanced marketplace where illicit production outpaces licensed cannabis by a staggering margin.

While these findings aren't surprising, they highlight many of the broken promises of legalization. Small retailers and family legacy farmers who took the legal path continue to face unsustainable pressures. The current system forces licensed businesses to compete with unlicensed operations that don't bear the burden of compliance costs, testing requirements, or taxes.

To fulfill legalization's promise, California needs a more uniform regulatory framework, reduced barriers to market entry, reimplementation of provisional licensing, and targeted support for small operators through startup incubation programs and collective models. By addressing these structural issues, we can create a functioning cannabis market that honors our agricultural heritage while delivering safe, quality products to consumers and sustainable economic benefits to our rural communities.

The North State's legacy farmers have been perfecting their craft for generations, using sustainable methods while producing some of the world's finest cannabis in our unique volcanic soil, altitude, and microclimates. Their preservation represents a business interest and a living cultural heritage worth protecting.”

See also: The Goldenhour Podcast on challenges and opportunities facing California’s legal cannabis market