The cannabis industry is projected to have an unprecedented economic impact generated by the cannabis industry and will add 100 billion to the US economy in 2023, with a predicted value of $100 billion by the year 2023. With the rapidly expanding marijuana industry, cannabis businesses such as dispensaries, cultivators, and distributors have grown in size and reach, generating a significant impact on job creation and economic growth.
According to New Frontier Data, the compound annual growth rate for the legal cannabis industry has been 28%, making it one of the fastest-growing industries in the country. While cannabis sales for both medical and recreational purposes are important contributors to this growth, medical cannabis retail sales alone are expected to reach $22 billion by 2023.
The economic impact generated by the cannabis industry is a result of its wide-ranging implications across sectors such as agriculture, healthcare, manufacturing, and construction. More than 340,000 jobs are projected to be created by cannabis businesses in 2023, with the majority of those jobs in the retail and manufacturing sectors. Marijuana businesses encompass cultivation facilities, dispensaries, and delivery services, with revenue also generated by retail operators through auxiliary services like accounting, security, marketing, and consulting.
The legalization of medical and recreational cannabis in several states has contributed to the industry’s growth as well, with legal cannabis sales projected to reach $34 billion by 2023. With this growth, we can expect to see the emergence of an increasingly sophisticated and competitive cannabis industry with multinational cannabis companies getting involved.
The legalization of cannabis is creating a favorable environment for cannabis businesses and medical cannabis patients who have suffered and been criminalized by outdated cannabis laws. In addition to legal access to medical cannabis, the plant is now being recognized and cultivated for its bioactive compounds and therapeutic properties in various industries. The economic boom has also brought about more funding and investments to the cannabis industry, helping cannabis companies to grow and innovate.
The cannabis industry will be a major contributor to the US economy in the upcoming years. The projected value of $100 billion by 2023 highlights the potential of the rapidly-expanding cannabis market. The industry at least one border has grown to encompass recreational and medical cannabis products, generating revenue and creating job opportunities across various sectors similar industries. Ultimately, it is expected that the cannabis industry will continue to grow and create more opportunities for businesses and job seekers in the future.
The US Cannabis Industry and its Economic Impact
As legal cannabis and sales skyrocket and federal legalization projected recreational it remains a possibility on the horizon, it is clear that the US cannabis industry has a profound economic impact. Cannabis consumers contributed to $17.5 billion in sales in the United States in 2020 alone.
Many leaders in the cannabis business community are calling for federal law to catch up with the evolving cannabis market, supporting both medical and recreational use. The economic impact from medical markets has been well-documented, with flower sales and other products contributing to many state economies. However, it is the projected recreational markets that have many investors excited to see federal legalization.
The economic impact of the US cannabis market goes beyond just direct sales of cannabis products. There is a significant amount of revenue generated by ancillary businesses such as similar industries such as cultivation equipment manufacturing, packaging, processing, and retail operators and other infrastructure-related industries that support the cannabis economy. Moreover, cannabis-related tourism and tax revenues would also add to the economic impact of legalized cannabis.
Despite some states’ and the District of Columbia’s decision to self-regulate a legal cannabis market, the industry remains a Schedule I drug under federal law. This classification means that, while the cannabis industry can legally operate in some states, it still cannot take full advantage of the regulatory protections provided by federal law.
The projected recreational markets have cannabis business leaders excited for what is to come. The future of the first recreational sale of the U.S cannabis industry is promising, with significant potential to create jobs, generate revenue, and positively impact local economies. However, in order to fully unlock the u.s cannabis industry’s potential, legalization at the federal level is necessary.
The US cannabis industry’s economic impact goes beyond just in-state sales of cannabis products. With federal legalization, the cannabis industry statistics would unlock to create jobs, generate revenue, and improve various sectors of the economy. It is high time to catch up with the rapidly-evolving cannabis industry statistics and bring benefits to the overall economy.
US Cannabis Sales Over the Years
The US cannabis industry is growing and evolving at a rapid pace. With new state laws, an increasing number of consumers are turning to cannabis use for both medical and recreational purposes. According to newly published data, the expected sales of the cannabis industry, including cannabis and CBD products, is projected to surpass $100 billion by 2025.
More than one-third of Americans aged 18 years or older have tried cannabis at least once, and this age group accounts for the majority of cannabis sales. According to the latest data, Texas accounts for the highest percentage of cannabis sales, likely due to its proximity to Mexico, where the drug is legalized. Unique nature of San Francisco also sees high cannabis sales made in the region.
The cannabis industry is not only contributing to the economy through its sales, but it is also creating new jobs and additional spending in other industries through medical cannabis retail sales. Patients spend an estimated $800 million a year on medical cannabis for their health needs, often leading to additional spending on things such as food and transportation.
As more states legalize cannabis for medical and recreational use, unique markets are emerging. For example, South Dakota recently legalized cannabis for recreational sale for the first time, whereas other states have legalized only for medical purposes.
CBD products are another emerging market within the medical markets wider cannabis industry. CBD sales have significantly contributed to the industry’s growth in the past few years. Pre-rolls are also becoming more popular and are expected to increase in sales in the cannabis dispensary in coming years.
The cannabis industry’s economic impact is measured differently from that of other industries. Its unique nature has led to the establishment of a standard multiplier, which reflects the number of additional jobs and additional financial impact created in other industries as a direct result of the cannabis industry’s economic impact.
It is essential to note that while the cannabis industry is growing, it remains illegal at the local level and the federal level remains illegal too, leading to a set of regulations that differ from any other industry. Despite this, the latest data shows that cannabis is increasingly becoming a purchase decision for consumers.
The US cannabis industry is expected to continue to grow as new markets emerge, and more new data comes out. Consumers are increasingly turning to cannabis for both recreational and medical purposes, and this industry is creating new economic opportunities for individuals, companies, and state governments.
The Economic Future of Medical Cannabis
The cannabis industry has witnessed a surge in popularity over the past decade. With the demand for medical cannabis on the rise, the economic potential of this industry is becoming increasingly apparent. Here’s what the future of medical cannabis looks like from an economic standpoint.
Market Growth
The medical cannabis market is expected to grow significantly in the next few years, with more states legalizing the use of medical cannabis. The legal cannabis market in the United States is expected to reach $73.6 billion by 2027, with medical cannabis accounting for a significant portion of that figure.
Job Creation
The growth of the medical cannabis market will create an influx of job opportunities. In 2019, the legal cannabis industry employed approximately 243,700 full-time workers. The number is expected to increase in the coming years as demand for medical cannabis continues to surge, leading to job creation in different sectors like medical cannabis retail sales, manufacturing, quality assurance, marketing, and more.
Increased Tax Revenue
Legalizing medical cannabis can bring substantial tax revenues for governments at both federal and state levels. In 2019, the legal cannabis industry generated approximately $15 billion in sales, with tax revenues to state and local governments totaling $1.9 billion. Additionally, revenue from excise taxes and licensing fees is estimated to reach nearly $11 billion by 2025.
Increased Consumer Spending
The increasing demand for medical cannabis products, including cannabis strains and ancillary products, means that more consumers are spending on cannabis products. This additional spending ripples through the economy, giving a boost to various sectors like transportation, packaging, and processing services.
Increased Innovation
As more companies enter the medical cannabis market, there is increased innovation in the industry, leading to research and development, which drives growth. This innovation leads to new techniques for cultivating, manufacturing, and processing cannabis products, which has the potential to improve quality standards and create new opportunities for cannabis businesses everywhere.
The economic future of medical cannabis is bright. With its potential for job creation, increased consumer spending, increased tax revenue, and innovation, the industry is set to experience significant growth in the future. As the demand for medical cannabis continues to surge, more states will legalize its use, and there will be more opportunities for investors, entrepreneurs, and people looking for job opportunities in this industry.
