Cannabis legalization is not just creating more business opportunities for recreational dispensaries, but for the point of sale industry as well. Star Micronics has found ourselves rapidly gaining popularity among the cannabis point of sale market and are looking forward to what lies ahead.
First, it’s important to consider the fact that the legal cannabis market is growing quickly with no intention to slow down. The legal cannabis market was worth an estimated $7.2 billion in 2016 and is projected to grow at a compound annual rate of 17%. This is more than 8 times the growth rate of the beer and liquor store market in the U.S.
While the cannabis market is growing, there are still issues with marijuana businesses and traditional banking, which means it has mostly been a cash-only industry. While this can serve as an inconvenience for those who frequent recreational cannabis dispensaries, it helps us point of sale folk to keep in the market by providing receipts printers and cash drawers for these businesses. With more states beginning to legalize recreational marijuana use, we can predict that more people will begin to heavily invest in this market, and smaller dispensary businesses will soon be able to fold into larger companies.
In addition to the issues that cannabis businesses face with banking and financial services, recreational marijuana dispensaries are required to practice “seed to sale” tracking compliance. For those unfamiliar with this term, the “seed to sale law” requires every marijuana producing plant to be tracked through each stage of its life, from cultivation to the point of sale.
With this in mind, software developers are working to create point of sale systems that help dispensaries to easily manage their seed to sale tracking, as well as perform other daily functions that your average retailer would need. For this detailed and complicated task, there is simply too much risk of human error for dispensaries to not use a retail management solution. This is where we begin to see the cannabis market booming in the point of sale industry.
So, what can we predict for the future of cannabis retail?
In the recent U.S. election, California, Massachusetts, Maine, and Nevada all passed measures legalizing recreational marijuana. While there are still tax and licensing provisions that will not take effect until January 2018, we can expect a major growth in legal marijuana sales, with California forecast to dominate the market. California, being the oldest medical cannabis state and the largest cannabis consumer population, is predicted to reach $7.6 billion in annual marijuana sales by 2020.
Similar to the online ordering trend among restaurant take-out and delivery services, we may be looking at the future of remote ordering for cannabis sales. California delivery startup, Eaze, has procured more than $25 million in multiple rounds of funding in the hopes of being the largest provider of on-demand cannabis delivery.
With the advances of technology and innovation in legal cannabis sales, Star Micronics is very excited to continue to provide support for this emerging market and see our partners grow along the way.