Nucleus One updated its report on the development of the market for Adult-Use Marijuana in Massachusetts.

Key highlights of this report include:

  • After being deemed nonessential, Massachusetts adult-use stores were mandated to shut down due to COVID-19 on March 24th and were allowed to reopen with curbside pickup only on May 25th. Our July report analyzes the impact of this two month shutdown on the market.
  • One month into the reopening phase of adult use cannabis operators in the Commonwealth, the CCC data shows encouraging market developments and the resilience of the industry due to sustained consumer demand.
  • The reopening has brought some relief to Commonwealth operators, but sales have not recovered fully yet. We expect an ongoing impact on the market with subdued growth and more challenging store economics in this new normal as more stores come online.
  • The business implications of COVID and protests for operators are manyfold: social equity, dispensing procedures, security, automation, affordability, and the illegal market.
  • The Commission began accepting license applications for delivery licenses on May 28. As of June 4, 16 licenses have been received by the CCC.
  • The Commission has continued processing applications and has significantly decreased the backlog of pending applications despite the lockdown.
  • It is too early to predict the full impact of the pandemic on the Massachusetts market. However, we expect increased competition to raise the bar for operators and lead them to rethink their business and operating models.

Over the store closure period, sales fell $116 million short and pending applications were down 20% from March. Despite these roadblocks, the industry showed resiliency in it’s response toward the end of the shut down. While reopening has not meant business as usual, the market is still growing in licenses, employees, and production. The industry’s adaptability is a good sign as COVID-19 continues to plague the economy.

The report covers retail and cultivation, two areas where Nucleus One helps investors and entrepreneurs start, grow and improve their cannabis operations.

Download Report

For more information, please contact:

Nucleus One- Cannabis Business Consultants


P: +1 207-619-1899