With more and more states ending cannabis prohibition, it isn’t surprising to know that legal sales are increasing rather rapidly in the United States. Most states have seen revenue numbers higher than initial estimates, as legalization has created thousands of jobs and added millions to states’ coffers. California’s cautious rollout of licenses, combined with relatively high taxes, has led to lower-than-forecasted sales numbers in the Golden State thus far, but those numbers should only be going up as bureaucratic obstacles decrease over time. Colorado has led the way, generating over $6.5 billion since the state legalized in 2014. A new report projects that California will eventually beat that number in annual sales alone, predicting that the 6th largest economy in the world will experience over $7 billion in annual sales in 2024, nearly a 1/4th of the expected $30 billion in cannabis commerce across the United States.
According to Arcview and BDS Analytics, legal cannabis spending in the United States is set to soar from $9.84 billion in 2018 to $30.03 billion by 2024. This suggests that, along with Canada, North America will account for practically 87% of all legal channel marijuana dollars by 2024.
In a detailed state-by-state breakdown, the report finds 13 states that offer billion-dollar sales potential by as soon as 2024, up from the three states that racked up more than $1 billion in legal spending in 2018 (California, Colorado, and Washington). Here are the states Arcview and BDS Analytics foresee contributing the most to legal cannabis sales in the U.S. by 2024:
California: $7.23 billion in annual sales in 2024
Colorado: $2.05 billion
Florida: $1.9 billion
New York: $1.66 billion
Michigan: $1.48 billion
Arizona: $1.47 billion
Nevada: $1.41 billion
Washington: $1.27 billion
Massachusetts: $1.21 billion
Illinois: $1.14 billion
New Jersey: $1.04 billion
Oregon: $1.02 billion
Maryland: $1.02 billion
It will be rather remarkable if the United States triples its cannabis revenue by 2024, but it certainly isn’t outside the realm of possibility. Of course, ArcView and BDS are making several assumptions that need to come to fruition including legalization being implemented in New York and New Jersey, and the industry in California meeting its potential. Statista is a little less bullish on its projections, but it still forecasts U.S. cannabis revenue to exceed $22 billion by 2024. Whether revenue crosses $30 billion or $20 billion in the next 5 years, it is clear that sales will be increasing, we just don’t know by how much.
The International Cannabis Business Conference in Vancouver, Canada, this September 15-16, is the industry event to stay up-to-date on the latest developments in the Great White North and around the world. Purchase discounted, early bird tickets by August 21st to save. After Vancouver, the world’s premier cannabis conference returns to San Francisco, California, next February, before heading back for another trek across Europe.