Legal sales of medical and adult cannabis in the United States are expected to exceed $15 billion by the end of 2020. This is an increase of almost 40% over last year. By 2023, sales could reach $37 billion.
Several factors explain the growth this year. On the one hand, the coronavirus pandemic which has boosted sales in every American state where it is legal. The US government’s stimulus programs, including the $600 per week given to the unemployed, would also have benefited cannabis. But even under the unprecedented circumstances of 2020, “the long-term potential of the cannabis industry remains intact,” according to the report, which notes that demand is growing as consumers move from the illegal to the legal market.
On the other hand, new cannabis markets have opened up such as Florida, Maryland, Oklahoma, and Pennsylvania. In Oklahoma alone, more than 8% of the entire adult population of the state is registered to legally consume medical cannabis. As a result, Oklahoma is expected to exceed $1 billion in cannabis sales by 2021, as is Florida.
Sales in Illinois and Michigan, both of which have recently legalized cannabis, are slowly increasing. Both states are expected to generate more than $2 billion in cannabis sales by 2024.
The only strange thing is California. Despite the enormous potential of the market, high taxes, convoluted licensing frameworks, and regulations prevent the legal industry from really developing and attacking the black market head-on. Despite this, California generated $3 billion in legal sales last year, a figure that is expected to increase as companies grapple with regulations and adapt to changing market dynamics.