Report: California cannabis production increases by double digits

Legal cannabis production in California increased by 11.8% to 1.4 million pounds in 2024, according to a new report commissioned by the state’s Department of Cannabis Control and released late Monday.However, an enormous illicit marijuana market continues to thrive despite the efforts of regulators and law enforcement, with illegal production totaling an estimated 11.4 million pounds, according to the analysis from Davis, California-based ERA Economics.

ADVERTISEMENT Most of that illicit cannabis is still shipped out of state to destinations unknown, according to the report.And while licensed production in the state is 1.4 million pounds, overall cannabis consumption in California is 3.8 million pounds.

With in-state illicit sales totaling nearly twice California’s legal sales, those numbers suggest that while the legal market still has potential to grow, major interventions will be needed to convince consumers to stop patronizing unlicensed operators.Regulator reiterates ‘commitment’ to MJ industry In response to the report, Nicole Elliott, director of the Department of Cannabis Control (DCC), said regulators and lawmakers have made “tremendous strides in strengthening California’s legal cannabis market.” “By reducing costs, expanding access, and strengthening enforcement, we’re creating a fairer, safer, and more resilient industry,” Elliott added in her statement.

“Our commitment to supporting the legal market and protecting public health is unwavering.” Yet, the report from ERA Economics – a consultancy that offers insights on agriculture and water – underscores some of the fundamental contradictions in California’s roughly $5 billion legal marijuana market.The market remains the largest in the United States and continues to grow overall.

That’s despite clear signs of a burst bubble such as inactive or surrendered business licenses outnumbering active permits, according to ...