The Nevada cannabis industry has seen an influx of revenues from cannabis recreational sales tax since its legalization. A portion of that revenue growth came from the edible niche market. For those who are not familiar with the term, “edibles” represent a range of cannabis products that can be consumed as food or as beverage.
Road to Legalization
The Nevada cannabis industry began to flourish after recreational use was legalized in 2017. This was the next step after a successful referendum in Nov. 2016. While the statute allowed adults 21 and older to buy, possess and use recreational marijuana, it also sets the rules and restrictions for the process.
The Nevada Department of Taxation oversees the issuance of cannabis license for both recreational and medicinal use. The department ensures that businesses applying for a license comply with state regulations. These include businesses that manufacture and sell edibles. An overview of the Nevada cannabis market can be found on https://www.greenbits.com/market-overview/nevada.
Cornering the Market for Edibles
Cannabis edibles fall under the drinkable or consumable categories. They include food and beverage products such as chocolate, cookies, brownies, herbal teas, and coffee. Cannabinoids (CBD) or tetrahydrocannabinol (THC) capsules that are taken orally are also considered edibles. Cannabis oils, tinctures, or infused butter are added to these products to produce the desired effect. Edibles contain different amounts of THC and CBD which could different types of effects to the individual.
When looking at the national industry overview, the North American edibles industry is forecasted to hit the $4 billion mark in the next few years. The boost in sales will come from the additional jurisdictions that are expecting to legalize recreational use in the coming years, according to ArcView Market Research. Industry experts predict the same positive trend in Nevada since more than 10 percent of its recreational sales come from the edibles market.
A Good Year for Nevada’s Cannabis Industry
On a state level, the Nevada cannabis industry experienced a good year. A report from the Nevada Dispensary Association and the state’s Department of Taxation showed that the combined industry generated half a billion in sales in 2017. The industry also generated thousands of jobs for the state economy. In terms of tax revenue, the industry produced around $70 million for the state. More than a third of that amount was allotted for Nevada’s public-school system. The industry generated these impressive figures despite the challenges posed by the underground non-regulated industry.
As one of the first to pass medicinal cannabis regulations in the United States, it would take more than 10 years before the state to finally move forward with recreational use. Once the recreational industry started in Nevada, it opened doors for cannabis entrepreneurs to offer different types of products and services. Small businesses offering edibles soon saw a flourishing market as sales grew over the years. This occurred as supportive initiatives were implemented to ensure Nevada-based cannabis businesses are compliant with state rules and regulations.