Cannabis industry will add $100 billion to US economy in 2023, MJBiz Factbook projects

April 12, 2023 · MJ Biz Daily

The total U.S. economic impact generated by cannabis sales is expected to top $100 billion in 2023, up more than 12% from last year, according to a fresh analysis from the newly published MJBiz Factbook.

Looking ahead, upward of $160 billion in additional spending will be added to the U.S economy in 2027, thanks to the opening and/or expansion of new recreational and medical markets in states such as New YorkMarylandMissouri and Kentucky.

To measure the industry’s economic impact, MJBizDaily analyzed similar industries, consulted with economists and applied a standard multiplier of 2.8 on projected recreational and medical marijuana retail sales.

The projections are a best estimate given the unique nature of the rapidly expanding marijuana industry, which is governed by a patchwork of state laws but remains illegal under federal law.

Marijuana businesses encompass a range of agricultural, manufacturing and retail operators as well as non-plant-touch ancillary companies such as lighting suppliers and law and accounting firms.

Some markets also include cannabis events and hospitality businesses, which tend to have an even higher economic impact than other industries.

The economic impact of the marijuana industry is not the same as supply-chain revenue that is often used to estimate the “total size” of an industry.

The total amount of U.S. adult-use and medical cannabis sales, for example. is expected to reach $34 billion in 2023, up from a revised $30 billion in 2022, according to the new MJBiz Factbook.

By contrast, the economic multiplier paints a picture of the cannabis industry’s impact on the broader economy.

In this case, for every $10 consumers and patients spend at marijuana retailers or dispensaries, an additional $18 will be injected into the economy, much of it at the local level.

The marijuana industry has a large impact on the broader economy, both locally and across the nation.

That impact comes directly from the day-to-day needs of workers in the cannabis industry, including spending on life’s necessities such as housing, transportation, entertainment and more.

Taxes collected from cannabis businesses and consumers play a role, too.

Marijuana businesses, consumers and patients pay hundreds of millions of dollars in state and local taxes that are used to fund government activities at those levels, including schools and roads.

Real estate also receives a boost from new retail, manufacturing and agricultural businesses moving into an area, or established companies expanding, increasing broader demand for commercial properties.

In many markets, cannabis companies are restricted in where they can operate, but they often bring new business activity to areas that previously were blighted or couldn’t attract such enterprises.

The 2023 MJBiz Factbook, available now, examines in detail the impacts from new markets, and ongoing legalization across the United States.

The latest edition includes more than 50 charts and a state-by-state overview of regulations, taxes, market conditions and what to watch for. (Full Story)

In category:Business
Next Post

Cannabis retail sales to surpass $33.5B in 2023, topping chocolate, eggs and craft beer

Chris Morris Thu, April 13, 2023 at 12:08 AM GMT+7·2 min read Jeenah Moon/Bloomberg via Getty Images As more and more states make medical and recreational cannabis legal, the drug’s retail sales numbers are hitting new heights. More from Fortune: 5 side hustles where you…
Read
Previous Post

New Mexico, Population 2.1 Million, Tops $300 Million in Recreational Cannabis Sales in Year One?

The governor is celebrating the one-year anniversary of New Mexico's adult-use marijuana market. She highlights the state's impressive sales figures of over $300 million since April last year and the numerous job opportunities the cannabis industry has generated. On Monday,…
Read
Random Post

The Cheers of Cannabis Cafes - Massachusetts Plans New Pot Cafe Rollout

Regulators in the Massachusetts marijuana industry made a decision this past Monday to abandon previous plans for a limited pilot program involving cannabis cafes and social consumption sites in twelve municipalities. One official said this move would help get the voter-approved market sector…
Read
Random Post

Former DNC Political Operative Sued for Fraud by South Dakota Cannabis Companies

Two South Dakota medical cannabis firms are suing a former political operative for the Democratic National Committee (DNC), accusing the defendant of defrauding the companies and their investors of about $1.7 million. A former political operative for the Democratic National…
Read
Random Post

Tony Bennett Called for Drug Legalization in 2012 After Whitney Houston Died

Most musicians drink and use drugs. It's a given and even impacted pop singer Tony Bennett, who passed away on July 20 at 96. In the late '70s, after a couple of decades of hitmaking and building his reputation as a Sinatra-style…
Read
Random Post

Cannabis Industry on Track to Deliver 800,000 American Jobs by 2028

The domestic job market is expected to grow by nearly 50 percent over the next five years, with an equally attractive increase in compensation for many in-demand roles at smaller companies this year.  Cannabis staffing and executive search agency CannabizTeam…
Read