As the cannabis industry continues to grow and become more mainstream, dispensaries are facing increasing competition and demand for efficient operations. One crucial component of a successful dispensary is a reliable point-of-sale (POS) system that can handle transactions, inventory management, and compliance with local regulations.
Here are dispensary POS systems statistics to help you understand the industry and choose the right system for your business.
Key Dispensary POS Systems Statistics 2023 – MY Choice
- The cannabis POS sector grew to 79 vendors in 2021, up 16% from the previous year and 75% from 2018.
- The top five companies serve 61% of retailers, despite the record number of POS vendors now in the market.
- Those two companies together account for 25% of the cannabis POS market, according to the Cannabiz Media survey.
- The company tracks around 35% of the retail market.
- In 2018, medical marijuana held a market share of 70.3% of total legal marijuana sales in the United States.
- Average store revenue is up 52% to 130% compared with January at more than 1,300 stores using cannabis e-commerce platform Jane Technologies.
- Revenues for 1,300 stores using the e-commerce platform, Jane Technologies, were up 52 to 130% during March 2020 when the pandemic struck and lockdowns began.
- The estimated contribution of cannabis businesses to the US economy by 2024.
Dispensary POS Systems Stats
Table 1: Dispensary POS Systems Market Statistics
| Statistics | Values |
|---|---|
| Expected annual growth rate of cannabis market (2019-2021) | 21% |
| Marijuana buds’ share in the global marijuana market (2016) | 62.9% |
| Estimated global marijuana market value by end of 2025 | $82.9 billion |
| Share of the global marijuana market accounted to the US | 90% |
| Wholesale marketplace LeafLink’s spike in orders in Mar 2020 | 48% |
| Edibles likely to rise in popularity among young cannabis shoppers | |
| Share of female customers in total cannabis sales (2020/2021) | 31.7%/32.6% |
| First-day sales of a state beating Colorado’s sales record | |
| Hawaii’s medical market annual growth rate (2019-2021) | 110%/68%/12% |
| Market share of branded products (2018) | Flower (43%) / Concentrates, edibles, and topicals (57%) |
| Americans favoring taxes and regulations on the weed market | 60% |
| Estimated market value of the cannabis industry by 2025 | $25 billion |
| CAGR of the cannabidiol oil industry (estimation) | 49% |
| Market share of medical marijuana in total legal sales (2018) | 70.3% |
| Cannabis POS vendors growth rate (2018-2021) | 75% (from 2018) / 16% (from the previous year) |
| Retail market coverage by POS vendors tracked by Cannabiz Media | Around 35% |
| Market share of the top five cannabis POS vendors | 61% |
| Market share of two major cannabis POS vendors | 25% |
| Estimated worth of illegal cannabis market in the US | More than $45 billion/year |
| Expected growth rate of the worldwide market for Terpenes | 6.3% (over the next five years) |
| Leading region for global hemp-based foods (2017) | The Americas (57%) |
- The global cannabis market is expected to reach $97.35 billion by 2026, with a compound annual growth rate (CAGR) of 32.92% from 2019 to 2026.
- The cannabis POS software market is projected to reach $1.92 billion by 2026, with a CAGR of 18.2% from 2020 to 2026.
- North America is the largest market for cannabis POS systems, accounting for 64.8% of the global market share in 2019.
- In a survey of cannabis retailers, 75% reported using a POS system to manage their operations.
- The average cost of a cannabis POS system is $500 per month.
- 78% of dispensary owners say their POS system has helped them increase sales.
- 69% of dispensary owners say their POS system has helped them manage inventory more effectively.
- In a survey of cannabis retailers, 57% said they would recommend their POS system to others.
- The most popular features of dispensary POS systems are inventory management, reporting/analytics, and compliance tracking.
- The average dispensary processes 50-100 transactions per day.
Dispensary POS Systems Facts
- A POS system is a software and hardware combination that allows businesses to manage sales, inventory, and customer data in real-time.
- Cannabis dispensaries face unique challenges in managing their operations, including strict regulations, cash-only transactions, and a constantly evolving product inventory.
- Dispensary POS systems can help automate tasks, provide real-time inventory data, and ensure compliance with state and federal regulations.
- POS systems can help dispensaries create customer profiles and provide personalized experiences, including targeted marketing and loyalty programs.
- Dispensary POS systems often integrate with other software, including seed-to-sale tracking and accounting systems.
Dispensary POS System Market Overview
- The global cannabis POS market size was valued at $1.2 billion in 2020 and is expected to reach $3.9 billion by 2028, growing at a CAGR of 15.2% from 2021 to 2028.
- In the US, the legal cannabis market is expected to reach $41.5 billion by 2025, with dispensaries making up a significant portion of that market.
- The North American market accounted for the largest share of the cannabis POS market in 2020, with a market size of $786.8 million.
Key Features of Dispensary POS Systems
- The top features of dispensary POS systems include inventory tracking, compliance monitoring, staff management, and sales reporting.
- Most dispensary POS systems are cloud-based, allowing for remote access and real-time data management.
- 77% of dispensaries use a POS system that is integrated with their seed-to-sale tracking system.
Benefits of Dispensary POS Systems
- Dispensary POS systems can help reduce errors and discrepancies in inventory management, resulting in more accurate sales and compliance reporting.
- Automated compliance monitoring can help dispensaries avoid costly fines and maintain their license to operate.
- 70% of dispensary owners reported that their POS system helped them increase revenue and profitability.
Challenges of Dispensary POS Systems
- One of the main challenges of dispensary POS systems is their high cost, with some systems costing up to $30,000 for installation and setup.
- Another challenge is finding a system that is both compliant with local regulations and meets the unique needs of each dispensary, which can vary widely based on factors such as product offerings and customer base.
- Dispensaries also face the challenge of training staff to use the system effectively, with 29% of dispensary owners citing staff training as a major challenge.
Dispensary POS System Usage and Adoption
- 93% of dispensaries in the US use a POS system, with the remaining 7% relying on manual cash registers or other methods.
- 57% of dispensaries use a system that is specifically designed for cannabis sales, while 43% use a generic retail POS system.
- In states where cannabis is legal for both medical and recreational use, 72% of dispensaries use a POS system that is integrated with their seed-to-sale tracking system.
Dispensary POS System Security
- Dispensary POS systems are highly regulated and must meet strict security and compliance standards to protect sensitive customer and business data.
- The top security features of dispensary POS systems include encryption, user access controls, and audit trails for transaction history.
- In the event of a security breach, 42% of dispensary owners reported that they would switch to a different POS system.
Trends in Dispensary POS Systems
- Mobile and tablet-based POS systems are becoming increasingly popular among dispensaries, with 64% of dispensaries reporting that they use a mobile or tablet-based system.
- Artificial intelligence and machine learning are being integrated into some dispensary POS systems to provide insights and analytics on sales data and customer behavior.
Table 2: Dispensary POS Systems Latest Statistics
| Statistics | Values |
|---|---|
| Estimated contribution of cannabis businesses (2024) | To the US economy |
| Increase in average store revenue (compared to Jan 2020) | 52%-130% (for more than 1,300 stores using Jane Technologies’ platform) |
| Increase in revenues (for stores using Jane Technologies’ platform) in Mar 2020 | 52%-130% |
| Average salary for cannabis workers | 10.7% higher than other US industry workers |
| Demand for jobs in the cannabis industry (Dec 2017-2018) | As high as 76% |
| Average growth rate of jobs in the marijuana industry | 21% (from 2018 to 2023) |
| Percentage of Americans supporting the legalization of marijuana | 62% (legalization) / 66% (recreational use) |
| Percentage of Republican voters supporting federal legalization of cannabis | 54% |
| Women’s usage of cannabis compared to men | 53% (women tried) / 42% (men tried) / 6% (female respondents used daily) |
| Age Range | Percentage of Cardholders |
|---|---|
| 51-60 years | 23.06% |
| 61+ years | Unknown |
| Reason for Cannabis Treatment | Percentage |
|---|---|
| Chronic pain due to musculoskeletal disorders | 28.9% |
| Intractable skeletal spasticity | 15.3% |
| Type of Product | Percentage of Total Sales |
|---|---|
| Flower | 61.2% |
| Other Products | 38.8% |
| Type of Application | Percentage of Total Revenue |
|---|---|
| Commercial license applications | 64% |
| Patient applications | 36% |
| Location | Number of Registered Patients |
|---|---|
| Puerto Rico | 92,499 |
| Canada | 342,103 |
| Type of Use | Percentage |
|---|---|
| Treatment of pain | 85% |
| Stress relief and enjoying social experiences | 40% |
| Enhancing experiences | 33% |
| Revenue | Percentage of Publicly Traded Cannabis Companies |
|---|---|
| Less than $5 million | More than 85% |
| $25 million or greater | Less than 5% |
| Consumer Behavior | Percentage |
|---|---|
| Support legal cannabis | 55% |
| Prior experience with recreational cannabis | 74% |
| Prefer physical retail locations | 63% |
| Form of Consumption | Percentage |
|---|---|
| Flower | 74% |
| Solid edibles | 44% |
| Legalization | Percentage of U.S. Population |
|---|---|
| Live in a state where marijuana has been legalized | 59% |
| Identified as “current users” | 13% |
| Risk Comparison | Percentage |
|---|---|
| Believe marijuana is less risky than alcohol | 70% |
| Believe marijuana is less risky than tobacco | 76% |
| CBD | Percentage |
|---|---|
| Used for a specific medical condition | 62% |
| Used by Gen Z respondents | 11% |
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