Cannabis sales are on the rise as countries legalize its medical and adult uses. A new report BDSA Analytics shows a 22% increase in sales compared to 2021, capping the market at $35 billion.
Strong growth in the United States
According to the analysis firm, the opening of new markets in the United States of cannabis actually increases the output of the industry, and generates more money and activity in the United States. Leafly notably counted nearly 430,000 people now working in the cannabis industry in the United States.
“New Jersey’s launch of the sale of adult-use products, expected in the second quarter, will likely cause the biggest jump of any market in the United States in 2022,” said Jessica Lukas, chief commercial officer of BDSA.
In the United States, the fastest growing region is the Midwest, with Illinois and Missouri recently legalizing cannabis. The report predicts that within five years, states like Florida, New Jersey, New York and Michigan will also experience strong growth.
One thing that should remain constant is California’s dominance in the cannabis market. “California is, and will remain, America’s largest cannabis market and the world’s largest cannabis market,” said Jessica Lukas, assuming the state manages to simplify market access for businesses, until here heavily taxed, and for consumers. Only 23% of Californian cities indeed authorize the presence of cannabis companies on their territory, a blockage which in fact benefits the black market.
The International on Therapeutics
Canada’s domestic market now weighs $4.7 billion in sales. Mexico will soon be a close second, with a growing medical industry and adult use being regulated.
International markets, which only allow the sale of medical cannabis, reached $1.4 billion in sales in 2021. In 2022, this figure is expected to reach $2.2 billion.
According to the report, countries such as Germany, France and the United Kingdom could also interfere in the medium term in international cannabis sales, “progressing slowly but surely”.