MJBizMag January 2022 - 47

decide whether to permit marijuana
businesses within their borders.
While recreational sales are set to
begin Jan. 1, only existing medical
operators that have received a
recreational license will be allowed
to serve the adult-use market. The
intention is to give Montana-owned
marijuana operators a head start
against competition. There are nearly
280 medical operators in the state and
roughly 370 MMJ dispensaries.
The industry will be limited to the
existing medical marijuana operators
until July 2023, when other recreational
businesses will be allowed to participate
in Montana's adult-use market.
Once other applicants are allowed
into the market, the level of opportunity
will depend on how many recreational
businesses municipalities
decide to allow.
For example, voters in the state's
biggest city, Billings, decided
in November to prohibit new
recreational marijuana stores, thereby
leaving the market to existing MMJ
dispensaries that also have licenses to
sell recreational cannabis.
TOURISTS MIGHT
DICTATE DEMAND
Montana's 1.1 million residents
have been accepting of the state's
medical marijuana program, with
patient counts at about 55,000 or 5%
of the population. While Montana's
population ranks 44th in the nation,
it has a strong tourism market,
drawing roughly 12.9 million visitors
in 2019.
How many suppliers, manufacturers
and retailers it will take to satisfy that
demand is unclear.
" The in-state market could be
handled by the production capacity
that we have in medical. But with
tourists, we probably need to double
the capacity to serve both the in-state
and tourist market, " said Kate Cholewa,
government affairs lobbyist for the
Montana Cannabis Industry Association.
The best places for retailers are in
the larger population centers and
near national parks, but land is costly,
she cautioned. " Real estate right now
in Montana, no matter where, is at a
premium. Prices are up all over the
place, " Cholewa observed.
The areas that approved I-190
are home to about 90% of the state's
population, she estimated. " So, even
though there are vast areas where there
won't be access to an adult-use market,
most people live in a place where there
is, " she said.
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mjbizdaily.com | January 2022 47

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MJBizMag January 2022

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