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Survey Finds More than One-Third of Cannabis Companies Unprofitable

And it’s much worse in the nation’s largest market.

A survey suggests that a significant portion of the U.S. cannabis industry is struggling to turn a profit.

The National Cannabis Industry Association commissioned a poll of nearly 400 operators conducted by Whitney Economics.

The North Bay Business Journal reports that 37% of survey respondents indicated that their businesses weren’t profitable.

And the numbers were even worse in the nation’s largest market.

More than half of California companies participating in the poll said that they were unprofitable; just 26% said that they were in the black.

California’s cannabis industry has warned that it is in danger of collapse without significant reforms.

Companies cited continued competition from cheaper products on the illicit market as a major challenge.

They also raised concerns about excessive taxes, volatile prices, and a lack of access to banking services.

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