The U.S. cannabis industry is experiencing a mix of challenges and opportunities. While the oldest legal adult-use state markets saw declining revenues in 2022, the newly legalized east coast state markets are expected to drive growth in the medium-term. With more states legalizing either medical or adult-use markets, legal sales could reach $71 billion by 2030.
Key Points to Uncover:
- Oldest legal adult-use state cannabis markets experienced declining revenues for the first time in 2022.
- Newly legalized east coast state markets serve as a strong foundation for growth of the industry in the medium-term.
- Legal sales could top $71 Billion by 2030 with 18 additional states positioned to legalize either medical or adult-use in the next decade.
- 96% of Americans will live in a state with some form of legal cannabis access if all 18 new states successfully pass legalization measures.
- Political opposition in historically conservative states will continue to resist legalization efforts.
- Registrations for medical programs trend up in medical-only states bordering newly legal adult-use states and trend down in states that legalize adult-use on top of existing medical programs.
- Broader macro factors like inflation, high taxes and the illicit market could impact near-term revenues, but will have little impact on the surging levels of demand for legal cannabis.