Bay Area Bud: The Ever-Evolving Cannabis Landscape in San Francisco & Oakland

Updated on Apr 25, 2022

Cannabis and the state of California go hand-in-hand. After becoming the first state to legalize medicinal marijuana in 1996, the Golden State has been an innovator in all things cannabis. While it took 22 more years to legalize recreational marijuana in 2018 finally, California has recently blossomed into a cannabis capital. It is the most populated state in the union, producing about 15 percent of the total U.S. economic output.  California is also the 5th largest economy globally, outshining whole countries like India and England. A massive part of the economy is the legal cannabis market, which generated $4.4 billion in sales in 2020 alone.

One of our favorite parts of the Golden State is the Bay Area. You can't go wrong with notable cities like San Francisco and Oakland, beautiful scenery, and top-quality bud. Beyond its top-shelf flower, the Bay Area has also worked hard to provide innovative cannabis experiences, making it a market to watch in the industry.

Although the legal cannabis world is growing like a weed (pun intended) in Northern California, there are still obstacles to overcome. Unfortunately, the industry is struggling with a thriving underground black market, setbacks due to COVID-19, and recent lootings. In this article, we'll explore all of the cannabis innovations helping the Bay Area to bounce back from these difficult circumstances and pave a fruitful future for the legal cannabis business in Cali. Let's get right into it! 

The Bay Area Leads in Cannabis Innovation

While it would be easy to open up dispensaries and call it a day, Bay Area cannabis businesses are constantly improving and searching for ways to redefine the industry. Much like the tech industry in California, the cannabis industry is also innovating in a competitive market. Allowing industry leaders to the challenge of changing with the needs of consumers. With a Social Equity Program in place and plenty of delivery services and cannabis smoking lounges scattered around, Oakland and San Francisco are leading the way for an equitable and profitable industry.

Marijuana Delivery Services

As COVID-19 remains an ever-present threat and anxiety in the mind of Americans, many consumers have found themselves looking for alternative ways to shop to keep themselves and others safe. Luckily for cannabis customers in the Bay Area, delivery services are easy to come by. We love supporting Jingletown Cannabis Club for those in Oakland, a locally-owned recreational and medical marijuana delivery service with an attention to excellent service and outstanding products. One customer stated, "I placed an order and a very friendly driver showed up so quickly, it was very convenient. The pricing is very competitive, and products are top-notch." Thankfully, consumers can easily order quality buds online or call up to get their favorite products delivered directly to their door. It is convenient, but most services offer contact-free options for pick-up and drop-off, meaning that everyone involved can do so safely and without too much worry! 

Oakland's Cannabis Equity Program

Many cities and states that have legalized cannabis prioritize big corporations over small local growers and craft cannabis brands, but Oakland has laid the groundwork to help locals who have been most affected by the drug war. With the creation of the Social Equity Program, Oakland has paved the way for people of color with previous cannabis possession convictions to receive loans and dispensary licensing. This program helps create a diverse environment for cannabis businesses. It cuts down a lot of barriers to entry, both of which are vital steps to creating a more inclusive, open, and equitable legal weed industry.  

Cannabis Smoking Lounges

When you think of cannabis-smoking lounges, you likely think of the coffee shops in Amsterdam. However, California made a splash in the industry as the first state to approve marijuana smoking lounges attached to dispensaries. The Bay Area has a handful of them around already, with two in San Francisco and one in Oakland. If you live in Oakland or are simply visiting, take a trip to Magnolia Dispensary to check out their Vapor Lounge and Dab Bar. With various dab rigs and vaporizers to choose from and the option to bring your own cannabis, it's a unique experience you won't want to miss! It's just like Amsterdam, except without all of the foreign languages and expensive airplane tickets to get there! 

Festival Cannabis Sales

Although most places with recreational marijuana legalization prohibit the consumption of marijuana in public spaces entirely, California has made some exceptions. One notable example is the festival Outside Lands, held annually in San Francisco. In 2019, festival organizers worked with the government to allow on-site cannabis sales and consumption. With the approval, Outside Lands created the " Grass Lands" space, which hosted 12 cannabis companies selling cannabis flower and concentrates with a separate consumption space. We're hopeful that this opens up the doors for future festivals to allow cannabis sales and consumption!

Overcoming Obstacles to Cannabis Sales

While legalization has helped push the industry forward, some threats and obstacles remain in California. With a growing black market, setbacks due to COVID-19, and looting during recent protests, Oakland and San Francisco have been hit hard but continue to work hard to flourish in these challenging times.

Black Market Sales

Even though recreational cannabis has been legal in California since 2018, the black market continues to thrive. Unfortunately, when voters passed adult-use marijuana, they also allowed cities to restrict or entirely prohibit dispensaries and deliveries. Only a quarter of California cities allow marijuana recreational sales. This lack of supply of legal marijuana to a significant portion of the state creates a high demand for black market sales. The black market hurts the dispensaries legally selling cannabis, as there are no regulations and taxes on their unlicensed competitors, allowing them to sell their bud at lower prices. However, California lawmakers recently introduced legislation that would fine businesses that assist unlicensed dispensaries up to $30,000 a day to curtail the black market. For California's black market to go away, there need to be more legal dispensaries in more places with better prices to drown all the illegal competition out. 

COVID-19

Because of Shelter-In-Place orders in California due to COVID-19, many industries have taken a hit, and the cannabis community is no exception. As things slowly transition back to normal and people cautiously take their masks off in public for the first time in years, some industries are still hampered by COVID. While cannabis is legal in the state, its illegal status federally has prevented marijuana business owners from receiving small business loans. Luckily, California has stepped up to help its dispensaries, distributors, and other cannabis businesses by offering fee deferrals. As many cities struggle financially due to the impacts of the spreading virus, some with marijuana restrictions have started to rethink cannabis as a potential for much-needed tax revenue. This has caused several communities that were once dry to introduce legislation to allow dispensaries and marijuana businesses to open. As new markets are created for cannabis businesses to open, the black market will also have to deal with new competitors.

Looting

Unfortunately, many dispensaries in California were robbed in the chaos of the recent protests. While this would be a significant setback for many, most owners stood in solidarity with the Black Lives Matter movement, understanding that these robberies were separate from the protests. Furthermore, the local community stepped up to help these businesses get back in working order. The owner of Magnolia Dispensary in Oakland stated, "It's been heartwarming. People let us know they'd help with clean-up. Manufacturers and distributors [are] offering to donate product, so we can start up with enough supply to get the company going."=

Future of Cannabis in the Bay Area

While we face complex social and economic times, cannabis businesses in San Francisco and Oakland have proven their adaptability and innovation in an ever-changing market. With new legislation to help cut off the black market, quick delivery options for consumers, unique smoking lounges, and increasing cities allowing marijuana sales, we're firm believers in the Bay Area's future in cannabis.