Cannabis industry: 26 billion in sales in 2021
Good mood at the trade fair in Las Vegas
Cannabis industry: 26 billion in sales in 2021 Good mood at the trade fair in Las Vegas
When members of the cannabis industry came to Las Vegas last week to attend the industry's largest trade show, there was some excitement in the air. It wasn't the aroma of a freshly lit joint, but rather the feeling that everything seems to be turning out for the best for the industry.
Despite a global pandemic, tangled supply chains, rampant inflation, and an ongoing battle to legalize marijuana at the federal level, the cannabis industry is thriving in America. Revenues hit $ 20 billion in 2020, will hit $ 26 billion this year, and are projected to grow to $ 45.9 billion by 2025, according to data from Marijuana Business Daily, which is presented at MJBizCon, the industry's annual trade show. were presented. With nearly $ 46 billion in sales, the cannabis industry would be bigger than the craft beer industry, said Chris Walsh, chief executive officer and president of MJBizDaily. "These are potentially conservative numbers, given what we're seeing," said Walsh at the start of the three-day event. The soaring sales in the US should come as no surprise. Currently, the majority of Americans live in a state where cannabis is legal in some form. More than two-thirds of US states have legalized medical cannabis, 18 of which have legalized recreational cannabis, according to the National Conference of State Legislatures.
Indeed, the cannabis industry has received a pandemic boost from consumers being inundated with stimulus money, people being forced to stay home and doing little, and dispensaries in certain states that are considered essential businesses. Many states, including pioneers like Colorado, posted record sales in 2020. But the past 12 to 18 months show there's more to this than just a Covid surge, Walsh said. Sales continued to accelerate at a record pace in the US - especially in established states like Colorado, Washington and Oregon, according to Walsh. "You see the next phase of a maturing industry here," Walsh told CNN Business. Not so long ago, deals worth a quarter of a billion dollars were rare in this industry. Now they're happening in quick succession: the most recent example is e-commerce and technology company Dutchie, which raised $ 350 million in its latest round of investors this month. The industry is also expanding rapidly and creating jobs, according to Karson Humiston, CEO and founder of Vangst, a cannabis industry-focused job placement website. According to a report released earlier this year by Leafly and Whitney Economics, there will be an estimated 321,000 full-time jobs in the cannabis industry in 2020, up from 234,700 the previous year. "Take a look around," said Humiston, gesturing to the busy crowds in the exhibition hall. "People want out of their old, dying industry and they want to get into the cannabis industry. This is the time. Now is the time to get involved because it will never be that small again." However, there are still many challenges and uncertainties.
The US Food and Drug Administration (FDA) has yet to provide official guidance on how hemp-derived cannabinoids such as CBD can be incorporated into commercial products; California, the largest cannabis market in the country, continues to siphon sales from a large, unregulated industry; the industry has become less diverse in recent years; and programs that address issues such as social justice or the undoing of the harm from the war on drugs are still in their early stages. On Capitol Hill, the whisper about federal marijuana reform and legalization has become a loud noise. However, with a lack of consensus among lawmakers and members of the industry, change is not in sight, Walsh said. Some want incremental but necessary steps such as banking and tax reform. Others hope to be able to tackle legalization in one fell swoop with comprehensive legislation. "I still doubt we'll see any major federal reform, including banking, in the next year," Walsh told CNN Business, referring to long-standing efforts to change federal law to include state-licensed cannabis companies (and those that they supply) to provide access to traditional banking services.
With marijuana considered a List I substance, some financial institutions have been reluctant to serve the industry - resulting in operators unable to obtain small business loans, pandemic relief, insurance, and disaster relief. Cash-rich operators pose a significant security problem, e.g. B. Theft, robberies, robberies and even murders, according to proponents of the law. The waiting game is nothing new to the cannabis industry. Although it is growing and spreading by leaps and bounds, legal progress has only been small. "I agree that it is hard work to get federal legalization, but what we put on the table is inevitable," said Steven Hawkins, CEO of the US Cannabis Council and executive director of the Marijuana Policy Project, during an MJBizCon- Panels on legalization at the federal level. "When you get to the point where half the country has legalized adult use, now we have the conditions in place for it to be inevitable. And that's starting to change the tone and tenor of Washington."