Dispensaries are growing in number. With that increase comes the need for enhanced security. If you are opening a business or looking for ways to protect your company, here are some figures you cannot ignore about the industry as a whole.

Senseon cabinet-level access control systems enable dispensary owners to combat the security challenges facing this rapidly expanding industry.

The Growth Rate of Cannabinoid-Based Pharmaceuticals

Consumer demand for cannabis-related pharmaceuticals is expected to grow – nationwide – year-over-year. The rate of growth indicates demand but also increased security risks for current dispensaries looking to meet ever-increasing customer counts. The figures, according to AmericanMarijuana.org show:

  • In 2020, $2 billion worth of product is likely to be sold in the United States
  • By 2022, that number will reach $10 billion
  • By 2025, it will reach $25 billion
  • By 2027, it will reach $35 billion
  • By 2029, it will skyrocket to $50 billion

The rapid expansion of this industry in the U.S. is expected to continue over the next decade.

The Number of Retail Locations Will Grow Exceedingly Fast

To meet the ever-expanding demands of consumers, more retail locations will open. These dispensaries will be located throughout the country, especially as more states allow for legal distribution of medical marijuana. Figures from AmericanMarijuana.org show the current and expected growth in retail sales of medical marijuana will reach:

  • At least $5.4 billion and up to $6.8 billion by 2021
  • At least $5.9 billion and up to $7.3 billion by 2022

In 2018, $4.5 billion was spent in medical marijuana retail locations by consumers across the country.

In 2017, there were between 20,000 and 28,000 medical cannabis businesses located in the U.S. This includes medical dispensaries, recreational stores, ancillary services, related tech and products, and testing labs.

The 3 Must-Haves for Medical Marijuana Security in 2020

What are the top three big security factors dispensaries need to consider in 2020?

#1: In-Store and Internal Theft Protections

Dispensary businesses must have in-store theft prevention in place including security solutions to keep products under lock and key from would-be thieves. Integrating physical protections of the product will minimize risks. One way to increase security is by installing a cabinet-level access control system, which protects valuable merchandise stored within display cases and cabinetry. Some systems, such as Senseon Plus, even come equipped with audit trail capabilities, enabling business owners to track access and monitor employee activity.

#2: In-Person Guards

Security guards will be a critical aspect of dispensary security for some years to come. Most anti-theft protections are still vitally important, but in-person security guards will be critical to creating a sense of security for patrons. If consumers do not feel safe with protection available to them from would-be thieves, they will turn to another provider who can offer that security.

#3: Security for Transportation

Both product and revenue will need to move onto and off of the property. This requires a higher level of security than most other businesses. In-demand security transportation services are available to provide these services. GPS tracking and streaming video monitored at a distance can help in securing product and cash flow.

Consumer Security Risks – Minimizing Data Theft

Another key concern is data breach security. Data breaches are already a big concern, as shown by these industry numbers:

  • Reports indicate 85,000 sensitive data files were leaked from various marijuana dispensaries across the country
  • Over 30,000 individual’s personally identifiable information was leaked during these data breaches

The biggest target was smaller dispensaries who often do not have the right type of protection in place. 

The leaked data included:

  • Employee and government ID information
  • Full names
  • Dates of birth for employees
  • Physical addresses
  • Email addressed
  • Medical ID numbers
  • Quantity and pricing information on cannabis products purchased

Between a growing number of viruses, worms, and other cybersecurity threats as well as a lack of technological savvy among employees, storing critical information in a digital format has led to numerous data breaches across industries. 

These data breaches create concerns related to:

  • Regulatory risks
  • HIPAA violations
  • Financial risks
  • Investment risks
  • Personal identity theft – leading to liability concerns
  • Reputational risk for dispensaries

For non-critical operating information, this may be acceptable. For proprietary intelligence, storing these files in a physical format and tucking them away behind lock and key may be the best way to keep them safe.

For maximum security, an RFID-protected locking system is best. These systems work by replacing a physical key with a secure keycard, further enhancing security around your most sensitive documents. Senseon Plus, for example, offers dual authorization, which requires two users to present valid credentials in order to access secured contents.

Manage user access and program advanced security features with the easy-to-use Senseon Plus handheld programmer.

Finals Thoughts

There’s little doubt dispensaries need to increase security through a number of pain points to alleviate high-risk scenarios. To remain financially viable, a cohesive approach is necessary to address concerns now as the demand for dispensaries continues to rise. Don’t know where to start? Contact our experts at Senseon to get started on your comprehensive dispensary security plan.