Marijuana sales along state lines are key revenue generators for retail operators in the United States, and new insights suggest a similar business bump along international borders, particularly Mexico.
Data compiled by New York-based wholesale technology platform LeafLink – as well as information gathered from state agencies, quarterly reports and interviews with several cannabis companies – bear that out.
LeafLink analyzed hundreds of ZIP codes at the request of MJBizDaily and found strong links that when new recreational markets open, retailers near borders stock up on inventory significantly more than operators located elsewhere in the state.
Data from the past three years revealed wholesale marijuana products purchased by border stores jumped 140% after the launch of adult-use sales, while retailers located in more interior areas increased purchases by about 80%.
“The growth when a state launches adult-use sales at a border store in terms of purchasing activity is around double the growth of the remainder of the state,” LeafLink Strategy Analyst Ben Burstein told MJBizDaily reporter Chris Casacchia.
Of course, numerous factors are at play – perhaps none more impactful than the marijuana policies of neighboring states.
Check out Chris’ story to gain more insight into the impact of border sales on the U.S. marijuana industry.