Expanding Legal Cannabis Market Needs Security From Seed to Sale
Once the cannabis products reach a warehouse or dispensary, marijuana companies rely on advanced security systems to protect their valuables and even their license.
TAMPA, Florida — A new report estimates the global legal cannabis market will top $63 billion by 2024, posting a compound annual growth rate of 21.1%.
The new report released by the Florida-based Ameri Research forecasted the legal cannabis market worldwide reached $14.3 billion in value in 2016. The rising demand of marijuana for recreational use and medical use is a key factor driving the growth.
With a population of almost 40 million, California on Jan. 1 became the largest state that has ever legalized recreational marijuana. Meanwhile, Canada is expected to show strong sales estimated to be $5 billion in 2018.
Due to the complex regulatory structure at state and federal levels, the full potential of the market is not yet realized, as well the potential for continue growth. However, sales of mandated security equipment and systems — including intrusion alarms, video surveillance and access control — can be expected to increase in unison with grow facilities and dispensaries.
Security companies are well positioned to take advantage of growth in the legal marijuana space where “cash is king.” Because of the issues surrounding marijuana businesses and access to banking, industry participants often use cash to pay expenses, in contrast to other businesses that would just charge a card or mail a check for things like taxes and rent. This creates a need to secure and move large amounts of cash safely.
Once the products reach the warehouse or dispensary shelves, marijuana companies rely on advanced security systems including visual and audio surveillance to protect their valuables and even their license. In order to prevent diversion of product, most state cannabis regulations require growers, storage facilities, processors and dispensaries to have advanced video security systems.
It’s a topic SSI continues to track and report. Following are several related articles we’ve posted in recent time:
- Sharp Intellos Robot Patrols Marijuana Grow Facility in Test Case Application
- March Networks Reveals Video-Enabled Cannabis Tracking, Compliance Solution
- Marijuana Dispensary Security? Security Grade Protective Services Strikes Big in Niche Market
- Denver Security Provider Launches Specialized Program for Cannabis Industry
- Legal Marijuana Trade Ushers in New Security Prospects
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