Cannabis sales are turning global heads as the gross revenue continues to increase while other businesses are disappearing altogether due to the fast-changing market. Some industries, like sports and craft beer, have had to take a seat in the nosebleeds while cannabis rises up as a new, promising industry. With cannabis sales reaching a revenue of $10.6 billion-$13 billion in 2019, it has already surpassed the National Basketball Association’s annual U.S. revenue, it’s making news as its sales predictions expect to exceed other thriving industries in a record never before thought possible.
What is the Cannabis Industry?
The legal cannabis industry is one of the fastest-growing markets. It refers to all the cultivators, producers, retailers, and consumers who play a role in the legal production, sale, and consumption of cannabis. This includes all of the legal professionals, policymakers, and companies entering this new sales industry and helping people better understand the benefits of cannabis.
Despite short-term uncertainty these days, the long-term potential of the cannabis industry remains intact amidst the pandemic. This longevity has increased investor interest and public support.
The introduction of e-commerce and medicinal shops becoming available throughout the country makes it no surprise that sales have increased substantially over the past few years. With more growers and companies entering the market, the quality and content standards have had to improve. There is a greater need to create a safer and continuously scientifically tested industry. With this growth and sales increase, many people may still be wondering about the legality of cannabis.
What are the Legalities of Cannabis?
This plant’s legalities have been an endless maze of division between federal law and the laws created within each state. In 2012, Colorado made history when it became the first state to legalizes cannabis sales for recreational use using similar guidelines to alcohol. If you look further into the history of cannabis legalization, California was the first state to allow medical marijuana within its borders in 1996.
Today, there is still much reading between the lines to be done in the United States when figuring out what type of cannabis you can consume, how much you can possess, and in what locations. On the federal level consuming hemp is legal, but it must have a THC content of 0.3 percent or less. Some states allow a higher THC content for medical or recreational use. The legal amount you can have on your person or grow at home is also up to your residence state. In other states, the consumption is still only legal for medical purposes.
More recently, Michigan and Illinois have joined the market as new adult-users and first recreational cannabis markets in the Midwest. Florida, Maryland, Oklahoma, and Pennsylvania are booming in medical cannabis sales, with higher than expected sales in Oklahoma, which show optimistic projections.
The revenue increase this industry has seen since legalization is hard to compare to its black market days. It is challenging to keep a record of any black market industries. The legalization of hemp and recreational marijuana made it easier to track cannabis’ revenue.
When Washington, Oregon, and Colorado legalized cannabis for adults, a 26 percent jump was seen in sales from 2015 to 2016 alone. Michigan sold $3.1 million in its first two weeks of legalization. The very few licensed shops that existed at the time saw its shelves cleared out.
According to the Hemp Business Journal, the CBD industry is predicted to grow to 2.1 billion in consumer sales in 2020. $450 million of those sales will come from hemp-based sources. By the end of 2020, projections indicate an increase of approximately 40 percent over 2019 sales figures.
As for the cannabis market as a whole, Marijuana Business Daily (MBD) released its 7th annual “Marijuana Business Factbook,” showing detailed sales projections from 2018-2023. This five year time period shows that the legal revenue may triple to $30 billion in the United States. These numbers still don’t come close to the projected revenue of 2024.
Considering that legalization is still restricted by medical vs. recreational use, cannabis is still some time away from reaching its glass ceiling, but it may be coming close.
Cannabis Sales Revenue vs. Other Industries
The industry has taken root in various sectors, including healthcare, pharmaceuticals, consumer goods, and agriculture. As we’ve seen from the market impact of COVID, many industries reached record lows. Others may have only seen a million or so in revenue impact, but the cannabis industry has continued to thrive when the news reports losses every day. Surprisingly, within the last decade, cannabis has gone from a largely illegal substance to a booming legal market that is now deemed an “essential business” during these uncertain times.
For years, industries like the NBA and NFL have held steady among the United States’ top revenue earners. In 2019, cannabis surpassed the sales of e-cigarettes (12.4 billion), over the counter sleep aids ($0.4 billion), and the MLB ($10.7 billion). Hemp is also on track to close in on the $15 billion NFL revenue. Craft beer has also felt the sudden rise of legal hemp. Projections indicate that Americans will spend more annually on cannabis than craft beer by 2024.
Cannabis Sales – Popular Cannabis Products
Besides CBD, one of the biggest game-changers to hit the industry is the innovation and variation of products. The growth of the industry gave rise to new and innovative ideas created to meet consumer interests. The following are the most popular cannabis products that are federally legal:
Tinctures contain concentrated amounts of CBD, carrier oil, and possibly flavoring. They are popular for their soothing benefits and mood-enhancing qualities. The convenience of tinctures includes easy consumption and long shelf life.
Capsules are popular for their CBD content and easy consumption. A quick pill provides the benefits without taking up time the way other methods may.
Edibles in the form of candy were popular from the start and a tasty way to consume CBD. They come in many shapes, colors, and flavors, giving them a sweet appeal over other cannabis products.
Vapes are among the best sellers in cannabis accessories. For those who enjoy inhaling cannabis, this is a clean and efficient way for enthusiasts to get their daily dose. If you’re wondering, inhalation offers the quickest results.
CBD Pet Treats
The positive attributes of cannabis extend from people to animals. It also provides calming benefits and may aid with aches and negative behavior. There is a growing variety of products available for pets these days and yummy treats when they’re deserving.
Smoking flower is the original way to consume cannabis, and it is still quite popular. Today many hemp strains come with flavors and aromas that rival exotic marijuana strains. For those who enjoy smoking, or making personal DIY cannabis products, CBD flower is the way to go.
Cannabis Skin Care Products
Since before legalization, these products had existed in the beauty industry, although these hemp-based products did not contain any cannabinoids. Today, cannabidiol skincare products are emerging due to the legalization of CBD. Manufacturers extract cannabidiol from the plant and combine it with other beneficial ingredients for the skin. Many are attracted to its natural benefits as it soothes, nourishes, and protects the skin.
Final Thoughts – Cannabis Sales
The increase in cannabis sales since legalization seems to portray a promising future for this blossoming industry. Its revenue shows no signs of stopping even in the midst of the COVID-19 pandemic. The numbers speak for themselves in a time when people may be turning toward natural relief and recreational use. For those who want to see more consumption variety, now might be the best time to experiment and enter the industry.