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

April 12, 2023 · Yahoo!Finance

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 may earn over $20,000 per year—all while working from home Looking to make extra cash? This CD has a 5.15% APY right now Buying a house? Here’s how much to save This is how much money you need to earn annually to comfortably buy a $600,000 home

new report from MJBiz, a Colorado-based business news outlet for professionals in the recreational and medical cannabis industry, forecasts marijuana sales will top $33.5 billion this year, a $4 billion increase from 2022. And by 2028, the industry is poised to see sales of just shy of $57 billion.

To put this year’s numbers in perspective, cannabis sales are set to top the amount of money spent in the U.S. this year on craft beer, chocolate, chicken eggs, and topical pain relief, respectively. The study also puts weed sales numbers just a bit higher than the opioids market.

Pot might not be the consumer curiosity it was when the legalization effort began, but there’s a steady market for the product. MJBiz reports the number of licensed U.S. marijuana businesses will exceed 165,000 this year.

In terms of total economic impact, the numbers are even higher. The report estimates the marijuana industry injected $90 billion into the overall economy last year. This year, it says, that will jump to $100.8 billion. And by 2028, it expects that figure to jump to $170.7 billion.

While flower, the industry term for the dried flower bud that is typically ground up and smoked (a.k.a. bud), remains popular, other products, such as vapes, edibles, and tinctures have collectively edged it out of the industry’s top spot. The report says flower sales now account for just 40% of overall marijuana sales in the U.S.

Not all the news is good, though. The economic crunch that has hurt startup funding in other industries is affecting the weed business as well. Cannabis capital raises last year declined by more than 60% YOY. And 2022’s retail sales figure of $30 billion came in $3 billion short of what MJBiz had expected in last year’s report. (Full Story)

In categories:Business Finance
Next Post

Washington Lawmakers Set To Enact Interstate Marijuana Sales Bill

Lawmakers in Washington State are on the cusp of passing legislation that would set the stage for licensed marijuana businesses to be able to engage in cross-border commerce with cannabis companies in other legal states. The state’s House of Representatives…
Read
Previous Post

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

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…
Read
Random Post

Feds Aim To Finish Cannabis Scheduling Review ‘This Year,’ Top Biden Official Tells Marijuana Moment

The head of the U.S. Department of Health and Human Services (HHS) is aiming to present President Joe Biden with a federal cannabis scheduling decision “this year” as agencies work “as quickly as we can” to complete an administrative review,…
Read
Random Post

Oregon Appeals Court Orders Stay of Fungus Testing Rule

The Oregon Court of Appeals on Friday suspended the state’s cannabis testing requirements for the fungus aspergillus, Willamette Week reports. The lawsuit was filed in July by the Cannabis Industry Association of Oregon, Southern Oregon Family Farms, and Cannessentials Farm who claimed the testing…
Read
Random Post

Texas Medical Marijuana Expansion in Legislative Limbo as Session Nears End

Any bills still in committee on Wednesday will be dead in the water. The future of medical cannabis expansion in Texas remains uncertain, as the state’s legislative session is set to conclude this Memorial Day. Crucial legislation aiming to broaden…
Read
Random Post

Cannabis banking bill ‘faces an uphill climb in this Congress,’ analysts warn before Senate hearing

Cannabis stocks have scored a boost from optimism around Thursday’s hearing on a bill that would protect banks that work with the industry, but some analysts are downbeat on the SAFE Banking Act’s chances of becoming law. “We believe the…
Read