The Cannabis Industry is Projected to Add $100 Billion to the US Economy in 2023
In a newly published analysis by MJBiz, cannabis sales are projected to generate more than $100 billion in US economic impact in 2023. These projections are up 12% from last year. The impact is anticipated to increase by another 12.5% in 2024 and is projected to increase by 41% from 2023 to 2028.
If these projections pan out, for every $10 consumers and patients spend at cannabis retailers or dispensaries, an additional $18 will be injected into the economy – and much of it will be local revenue.
How were these projections calculated?
These projections include retail sales, a range of agricultural, manufacturing, retail operators, and ancillary, non-plant-touch companies like law and accounting firms. Also included are cannabis events and hospitality businesses, which tend to have a higher economic impact than other industries.
The report by MJBizDaily Research was compiled by measuring the industry’s economic impact by:
Analyzing similar industries
Consulting with economists and applying a standard multiplier of 2.8 on projected recreational and medical marijuana retail sales
Considering the unique nature of the rapidly expanding marijuana industry, which is governed by a patchwork of state laws due to federal prohibition
Considering the economic impact of the cannabis industry is not the same as supply-chain revenue, which is often used to estimate the total size of an industry
Why does this growth matter?
This growth is projected mainly because of the opening and/or expansion of new state cannabis markets. As discussed in 3 Charts Showing Projecting Major Growth in the US Legal Cannabis Market by 2030, by 2030, 10 states are likely to legalize medical cannabis, and nine states likely to legalize adult use.
The economic impact of the cannabis industry extends far into the broader economy, both locally and across the country.
Workers in the cannabis industry contribute to this impact on their day-to-day needs, like spending on housing, transportation, entertainment, and more. Even more so, the hundreds of millions of dollars in state and local taxes collected from cannabis consumers, patients, and businesses contribute to the impact of funding things like schools and roads.
The real estate industry also feels the impact with an increase in new or expanding retail, manufacturing, and agricultural businesses moving into the area.
Despite the many restrictions on operations that cannabis companies face, the industry can bring new businesses to areas that have stagnated in business development.
Why now is a good time to invest in cannabis
The projected economic impact of the cannabis industry over the next five to seven years is enormous growth.
Now is an excellent time to get in on the ground floor of well-positioned and well-vetted cannabis companies. Cocannco uses sound financial due diligence to identify and partner with these companies and crowdfunding to provide the cash infusion they need to grow.
Ready to learn more about these investment opportunities with Cocannco?