$17.5 Billon Made In Record U.S. Cannabis Sales
With marijuana stocks and the cannabis industry gaining more attention from investors there is much anticipation for the future. The cannabis sector overall has been growing at a fast pace. This growth has led to more states going legal and developing new cannabis markets. With more states looking to go legal, it will have more value to the U.S. cannabis industry. As well when a publicly-traded company performs well as a business it can impact the way a cannabis stock can trade.
With talks of better cannabis legislation circling through the cannabis industry, many people are looking for the best cannabis stocks they can find. Much of the interest is surrounding the U.S. cannabis industry. As mentioned above more states are working to pass some form of cannabis legislation. For states that have already established their, legal market they have been generating large amounts of revenue.
Since back in 2020 right at the start of this pandemic cannabis was deemed essential and dispensaries were left open for business. This led to what some may say was a break-out year for cannabis sales in the United States. Back in November during the presidential election, 15 states voted to go legal with the adult use of marijuana. As well there are now 35 states that have approved the sale of medical cannabis.
Between both medical and adult-use sales record high of $17.5 billion has been made a 46 percent increase in legal cannabis sales since 2019. A majority of this increase in sales came from the adult-use markets in states such as Colorado. As well as states like Oregon which reached over 1$ billion in cannabis sales which made for a 29 percent increase since back in 2019. This info is taken from a report published by BDSA.
Cannabis Sales In The U.S. Are Going Through The Roof
Developing markets such as Illinois, which extended its medical cannabis market to introduce adult-use sales in 2020. From this Illinois had the biggest revenue increase in 2020, shooting up by $784 million. This spike in sales helped the state reach over a 1$ billion in sales. California, which is the largest cannabis economy in the U.S. hit $3.5 billion. Which accounts for an influx of $586 million in cannabis sales. In addition to this Florida is picking up in cannabis sales with an increase of $473 million.
“We expected more potential impact from an economic downturn, but the industry has proven to be resilient,” says Kelly Nielsen, who runs BDSA’s insights and analytics department. “It’s potentially recession-proof.”
With this Kelly Nielsen also pointed out 3 things that played a factor in the 2020 growth of the cannabis industry. To start this pandemic actually helped the cannabis industry when many states deemed marijuana businesses essential. Because of this much more cannabis was being sold and the demand started to increase leading to more consumers entering the market.
The second thing to consider for this 2020 market growth is the increase in the number of people using marijuana. Some analysts say more people are consuming cannabis than ever before
Another factor driving the industry’s growth is a simple one: More people are consuming more cannabis than before. A consensus done by the BDSA pointed out that about 30 percent of people who use cannabis are now buying marijuana more frequently. Yet another survey, showed that 25 percent of people who use cannabis said their usage has increased prior to Covid-19
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The U.S. Marijuana Market Continues To Grow
Throughout the entire U.S. adult-use market the number of consumers at the close of 2020 was higher than the first 6 months of 2020. For those who live in legal states with recreational sales, 43% of them use cannabis. This makes for an increase that is up from 38%.
“Close to 50% market penetration is really compelling, as alcohol penetration is around 60%,” says Nielsen.
The better half of the cannabis industry is still run by the black market. Illegal cannabis sales are said to make over $100 billion each year. Now while the legal cannabis industry is catching up, albeit slowly their is much growth to be seen. The BDSA has projected that by 2026, the legal U.S. cannabis market will reach $41 billion in yearly sales. With 2021 underway there is much left to be seen in the cannabis industry. The increase in U.S. cannabis sales brings more attention to the sector.
Along with attention also brings the possibility of more money from various investors. Currently, there is a lot of hope regarding the future of the U.S. cannabis industry. As mentioned above with more states going legal brings more opportunity to see even an even bigger number of sales that have been projected. Much of this push is going to hang of better cannabis laws whether on the state or federal level. With the right cannabis laws in place, more growth and business opportunities can emerge. As the new year has gotten underway there is still much to be seen in 2021.
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