Cannabis Market Industry Growth, Research & Statistics
We use data-driven methodologies to evaluate financial products and companies, so all are measured equally. You can read more about our editorial guidelines and the investing methodology for the ratings below. The robust popularity of recreational hemp is the key factor fueling the market growth. The coronavirus pandemic provided opportunities to support the industry and relax regulations. For instance, in June 2021, the Cannabis Regulation Act (CRA) created a comprehensive licensing, taxing, and regulatory enforcement structure for the adult use of cannabis in New Mexico, the U.S. According to the act, adults aged 21 and over can possess up to 16 grams of extract, 2 ounces of flower, 800 mg infused edibles, and six mature plants.
Licenses, Price Compression Shape Cannabis Market Growth
Cannabis is a tall plant with a stiff upright stem used as a drug and is being legalized for its medical usage. The edible segment of recreational marijuana is expected to grow at the fastest pace during the projected period. Marijuana flower, or “bud,” is a widely popular consumable product in the world market.
Browse News Releases
More broadly, rampant inflation in recent months has increased many costs for cannabis companies, and interest rate hikes may have made it more difficult for those companies to secure capital. Fears of a cannabis accounting recession could decrease consumer spending on perceived non-essential items, potentially including cannabis products. The cannabis sphere faces both industry-specific and broader economic challenges.
- His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.
- In an industry where profits are often a pipe dream, that does represent concern.
- But the recreational side continues to attract investors as more states pass legislation.
- GLASF’s price-to-sales ratio is higher than peer companies with similar market caps, but when revenue grows this fast, that can happen.
- According to projections from Statista, total revenue from cannabis is expected to reach $39.85 billion in 2024.
- Companies in the cannabis industry generate revenue primarily from the volume of cannabis sold (kg/gram) and the average selling price (ASP) of cannabis per unit ($/gram or $/kg).
- In the past decade, there has been a notable shift in public opinion and policy surrounding marijuana, resulting in the legalization of its recreational use in various countries and states.
The Best Cannabis Stocks of May 2024
The SAFE Banking Act does indeed have a chance in 2022, so long as it happens before the full onslaught of midterm election campaigning begins. Adult-use / Recreational Cannabis Sold (kgs)Adult-use / recreational cannabis sold (kgs) represents the amount of cannabis sold in terms of volume for adult-use purposes. Visible Alpha offers five cannabis-related comp tables, comparing forecasts for key financial and operating metrics, to make it easy to quickly conduct relative analysis. Every pre-built, customizable comp table is based on region, sub-industry, or key operating metrics. The drug marijuana contains the intoxicating tetrahydrocannabinol (THC), and is known for its impairing or mind-altering effects, and causes intoxication. Hemp, on the other hand, contains significant levels of the compound cannabidiol (CBD).
The cannabis industry supports 440,445 jobs
- The bill also would eradicate non-violent marijuana crimes, advance medical research, and allow cannabis companies access to basic financial services, including bank accounts and loans.
- In addition to the mega-deals above, we still see investment capital readily available for operationally efficient and effective companies, and opportunities that project positive cash flows.
- While this is not a fully integrated cannabis industry primer, this guide will aid market participants in identifying industry trends and the future performance of cannabis companies, by region and service type.
- While they’ve been criticized in the past for falling short, cannabis social equity programs appear to be supporting marginalized groups in the industry.
- A similar increase in sales was seen in the U.S., with consumers also stocking up in anticipation of government-mandated shelters.
More limited capital and investment options coupled with continued regulatory and legal uncertainties mean unsustainable operating costs for independent and smaller operators, which means the only way to survive may be to sell to a larger player. While the hemp sector of the cannabis industry cooled in 2021, the focus on agriculture-related infrastructure for processing in the U.S., and the movement away from single purpose cannabinoid crops, is a major advantage. Going forward, the industry can establish a stronger foundation beyond mere cannabinoid supply, and towards its myriad of more lucrative and game-changing industrial, consumer good, and tech-based uses.
Since phone numbers were readily available on this report, phone calls were made to request participation from randomly selected licensees throughout the list. The growing acceptance of cannabis is not just happening in the US, but all over the world. Grandview Research projects that the global market size for the cannabis industry will reach $102.2 billion by 2030. How stringent or lenient regulations are written and executed will determine the size and viability of the market. One state may severely limit the number of licenses it issues, while others may not put any limit.
Investors will ask for equity in exchange for cash, and private lenders often have less than desirable conditions for borrowers, such as a lower loan to value (LTV) ratio or sky-high interest rates. The cannabis industry is an expensive one to operate in, and a loan from a bank can be game-changing for many entrepreneurs in this space. Through Fincann and the Cannabis Banking Financial Network™, you can apply to access the funds you need to jump-start or expand your cannabis https://www.bookstime.com/ business. Cannabis lending services and business services are available to all cannabis businesses in all sectors in 50 states, from coast to coast. Abaca is an Arkansas-based subsidiary of Safe Harbor Financial focused on providing “cutting-edge banking and financial solutions” for small businesses and multistate operators (MSOs). Abaca helps businesses access secure, FDIC-insured bank accounts, payment processing solutions, and a variety of term and conventional loans.
Cannabis Market Report – Table of Contents
CBD has become a popular additive in wellness products, having an array of benefits, from sleep support to pain relief to its calming and anti-inflammatory properties, and more. CBD is often touted for its wide range of health benefits with minimum side effects. WM Technology represents a different avenue for investors to gain exposure to the cannabis space.