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US Cannabis Sales Hit Record High Of $17.5 Billion

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Sales of cannabis in the US have reportedly now reached record highs of $17.5 billion, with 2020 proving to be a breakout year for the industry.

According to a new report by cannabis sales data platform BDSA, legal sales throughout the US – where 15 states allow adult use and 35 allow for medicinal use sales – saw a 46% increase from 2019.

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Various mature markets in the US recorded accelerated growth in 2020. Colorado grew by 26%, compared with 13% in 2019, while Oregon grew by 39%, versus 21% in 2019.

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New markets will also prove significant for future growth in the industry, with five states – Arizona, Mississippi, New Jersey, Montana and South Dakota – having legalised cannabis use during the 2020 elections.

Micah Tapman, BDSA’s Chief Executive Officer, said:

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The cannabis industry faced numerous challenges in the past few years, none so potentially disruptive as the coronavirus pandemic in 2020.

Our previous forecast was conservative based on the expected economic fallout from the pandemic, but the industry not only survived, it thrived and legal cannabis gained considerable ground, exceeding our expectations in several markets.

Illinois, which began allowing adult-use cannabis in 2020, saw the biggest gain last year, rising by $784 million. Various other markets saw a significant expansion, with the top four being California (+$586 million), Florida (+$473 million), Colorado (+$451 million) and Oklahoma (+$400 million).

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Going forward, BDSA forecasts that US sales will reach $41.3 billion in 2026, a CAGR of 15%. It’s also expected that four new medical and five new adult-use markets to commence sales in 2021.

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Growth has also been noted outside of the US. In Canada, legal sales added up to an estimated $2.6 billion in 2020 and are forecast to expand to almost $6.4 billion in 2026, a CAGR of 16%.

Legal adult-use sales of cannabis began in Canada towards the end of 2018, allowing for substantially expanded product offerings within both the medicinal and adult-use markets.

Over the course of the year, BDSA Retail Sales Tracking data in Alberta and British Columbia demonstrated rapid growth in shares of new product categories of Cannabis 2.0.

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Further afield, legal cannabis product sales outside of the US and Canada surpassed the $1 billion mark in 2020, with almost $1.1 billion in spending.

Going forward, BDSA forecasts that global sales will break $8.3 billion in 2026, a CAGR of 40%. This new legal spending will reportedly be largely driven by Mexico (104% CAGR) and Germany (36% CAGR), However, the UK (57% CAGR) and France will also make a substantial contribution (186% CAGR).

It’s expected that Mexico will account for nearly 32% of legal cannabis spending outside of the US and Canada in 2026.

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Topics: News, Canada, Cannabis, US

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BDSA
  1. BDSA

    BDSA Reports Global Cannabis Sales Exceeded $21 Billion in 2020; Forecasts $55.9 Billion by 2026

Julia Banim
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