Listen up, people! It looks like the cannabis game is still going strong, with sales projected to go up and up until 2028. Even though some states are seeing a decline in sales, Brightfield Group sees brighter days ahead for the industry. Sure, profit margins might be tight, but legal access to weed is expanding and federal legalization could be on the horizon.
On February 16th, Brightfield Group dropped their “U.S. Cannabis Market Forecast,” revealing a deep dive into cannabis sales in 2022 and projections for the next five years. They predict that the cannabis market will hit $31.8 billion in sales by the end of 2022 and an insane $50.7 billion by 2028.
Why is the industry still pushing forward? Well, according to Matt Zehner, the insights manager at the Brightfield Group, it’s because more states are getting in on the game. Seven state markets have already started selling weed in 2022, with six states legalizing it for adult use and one for medical purposes – four newbies joined the party later that year. Zehner stated that highly-populated states like New Jersey and New York are predicted to see significant growth this year, despite their slow start.
The good times are expected to continue rolling as more states legalize weed, like Maryland’s upcoming adult-use program. Even Maine and Michigan showed steady growth.
The East Coast could potentially become a multi-state hub for weed since nine states already allow medical cannabis and seven states legalized adult-use cannabis. The West Coast, including Washington and Colorado, could make bank off adult-use cannabis sales with projections estimating that sales could reach $11.5 billion by 2023 and $15.3 billion by 2028. Quality over quantity seems to be the prediction here since this is just absolute sales – not profit. Arizona and New Mexico are also expected to contribute to this growth.
The Midwest region is ready to see a huge surge in weed sales once Missouri starts selling soon. Even though Ohio and Minnesota haven’t approved adult-use yet, it’s expected in the coming years which will pave the way for even more growth. The Southern region of the U.S., however, isn’t expected to change much with medical cannabis sales remaining their primary focus.
So what’s hot right now? Flower is still leading with $11.6 billion in sales in 2022, followed closely by vape products with $5.9 billion in sales last year. Cannabis-infused beverages reached $290 million in 2022 and have the potential to reach $640 million by 2028.
But wait, there’s more! Another report from Brandessence Market Research revealed that psychedelic drugs like psilocybin, LSD, and ketamine could exceed $4.87 billion in 2022 and $11.82 billion by 2029. The prevalence of mental disorders like depression and demand for treatment options are driving this market’s growth, along with changes in lifestyle desires for a higher quality of life.
Lastly, let’s not forget about the hemp industry which is set to experience significant growth with an estimated projection of up to $18.1 billion by 2027.
Long story short – the cannabis industry isn’t going anywhere any time soon! With so much potential for growth and expansion, entrepreneurs should take advantage of this opportunity to innovate new products and services that appeal to consumers’ evolving needs. As regulations change and consumer preferences shift, businesses must adapt to keep up with this ever-evolving industry. So get your hustle on and don’t miss out on this green rush!
P.S.: The FDA hasn’t established regulations for CBD yet which has left the cannabis market stunned – but don’t worry too much about it because there are still plenty of opportunities out there.