On October 7th, Vermont passed legislation to allow adult-use cannabis to be regulated and taxed. They are the 11th state to legalize adult cannabis use. As such, sales are expected to begin in October of 2023.
Industry Growth
The decision to legalize adult-use cannabis will drastically grow the market that is currently for medical-use and operated by only 5 separate companies. In addition, opening up space for applications and licenses to regulate recreational cannabis will promote market diversity and growth. A Cannabis Control Board is likely to be set up by January of 2021, and will be accepting applications by April 1st, 2022 at the latest.
Projected Profitability
As with the other 10 states that have approved adult-use cannabis, expected profit margins for Vermont are huge. Marijuana Business Daily projects the following sales for Vermont: 2023 could reach approximately $230 million, according to an economic impact report released in August. By 2024, sales are expected to increase to just below $250 million in 2024, with potential to reach upwards of $255 million in 2025.
Cannabis Applications and Business Licenses
Several types of business license types will become available in the coming months. Also, stand-alone permits are expected to be issued for new market entrants — growers, retailers, manufacturers, wholesalers, and testing labs; in addition to vertical integration. Newcomers to the Vermont industry will be allowed only one license per category and only one location, which means that all operations will have to be housed in a single building.
Canna Business Services is here to help you prepare to apply for a cannabis business license in Vermont. Our highly-skilled team is ready to guide you along your journey. We can help you gather your team and begin to put together your business plan. Contact Canna Business Services today to get a head start on your application for the Vermont adult-use cannabis industry.
