After years of slow and steady growth, the legal marijuana industry is grappling with a downturn amid surging levels of inflation and the potential for a recession.
A number of plant-handling businesses, dispensaries and the tech companies serving them are retrenching as a result of a more challenging and increasingly competitive operating environment where consumers' discretionary income is shrinking — inflation has risen by 8% in the past 12 months, while groceries are up by roughly 13%.
Spending on legal marijuana has curtailed along with that.
According to New Frontier Data, customer spend per dispensary transaction dropped by 7% on average across all U.S. markets between the first two quarters of this year.
© 420 Intel