Cannabis Industry Growth: Is The Industry Still Growing?
Despite regulatory challenges and a dearth of financing options, US cannabis industry growth is expected to top $22 billion in 2022. Once the darling of retail investors and speculators, cannabis remains one of the most attractive growth markets available today. With more states legalizing recreational use and competition driving efficiency, cannabis is very much a growing industry.
2022 Cannabis Industry Statistics
US cannabis medical and recreational combined sales are expected to increase by roughly $6 in 2022 to $33 billion. Only $1.4 of that year-over-year increase can be attributable to medical sales, highlighting just how explosive recreational marijuana revenue is expected to increase.
The cannabis market value is forecast to exceed $52.6 by 2026, nearly doubling in 5 years. One element in its rapid growth is the expanding market size. Millions more cannabis consumers join the market whenever state governments approve recreational marijuana legislation. For example, the small state of South Dakota approved adult-use medical and recreational marijuana in the same election for the first time ever.
It's not just legislation driving cannabis growth, either. Generational attitudes have shifted steadily for decades. 50 years ago, 4% of adults had tried marijuana; by 1977, that number had jumped over 20%. In 2015, more than 40% of US adults said they had tried marijuana, which now sits at 49%.
More states legalized medical and recreational use, widespread societal acceptance, and an increasing number of suppliers mean that while demand increases, supply must increase efficiently to stay competitive. In 2018, most dispensaries operated on a 12% profit, with long-term margins between 12 and 15%.
CBD Products Drive Growth
CBD products have made cannabis use more acceptable without the traditional stigma. For retailers, CBD products are more accessible to a wider audience than flower products. CBD’s revenue share exceeded 63% in 2021. Some of the most popular CBD products are:
CBD oils/tinctures
CBD butter
CBD gummies
CBD capsults
Topical CBD applications, such as lotions, ointments, creams and salves
Grow Your Cannabis Business with Keen
Keen Technical Solutions is a vertically-integrated energy company with decades of experience supporting cannabis entrepreneurs. From energy consultation to facility construction, we’re proven partners in designing and building a competitive cannabis operation from the ground up. Learn more about our services today; contact Keen to get started.