Chart: California medical marijuana sales skyrocket 132% since 2010

By Eli McVey

Medical cannabis sales in California have soared over the past five years, rising from a reported $351 million in 2010 to nearly $814 million in 2015, according to exclusive data obtained by

Much of that growth occurred in 2015, with reported sales via dispensaries soaring more than 40% from the previous year.

With a five-year compound annual growth rate of 18.3% including periods of modest or even negative growth Californias MMJ market continues to expand rapidly despite a host of challenges, ranging from crackdowns on dispensaries in cities like Los Angeles and outright bans in other areas.

Actual sales numbers are likely bigger, but the unregulated nature of Californias MMJ market has left many dispensaries operating in legal gray areas avoiding further taxation and regulatory scrutiny by under-reporting their sales.

The figures, despite the likelihood that theyre under-reported, reveal justhow rapidly the states medical cannabis industry has grown in recent times.

In just the past two years from 2013 to 2015 Californias MMJ market has grown by $370 million, an 83% increase. In fact, this two-year period accounts for 80% of all sales growth thats occurred in California over the past five years.

While other states have posted larger year-over-year percentage sales gains, Californias market is more mature, which doesnt allow for the kindof astronomical growth found in smaller markets. The five-year, $463 million in absolute dollar growth is the more notable figure.

Several possible reasons for the recent growth:

• The Aug. 29, 2013, memo written by then-Deputy Attorney General James Cole de-emphasized the prosecution of marijuana businesses and individuals in full compliance with state laws, providing some reassurance that neither would be pursued by federal authorities.

• In late 2014, it became clear that a statewide regulatory framework to license and regulate marijuana businesses in California would pass through the legislature. Dispensaries were therefore given strong incentive to show their full compliance with state and local laws, saidDavid McPherson, principal at HDL Companies. This led to more accurate reportingof MMJ sales, as any dispensary operating outside existing laws would be ineligible for a future license, McPherson surmised.

• McPherson also suggested that the arrival of MMJ delivery services such as Eaze and the increased prevalence ...