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The marijuana industry is growing rapidly, with a compound annual growth rate of more than 30%. While most people understand that law changes resulted in new cannabis businesses opening, they couldn’t have predicted the significant economic changes that came with them.
Whether you’re in the industry or curious about it from a customer’s perspective, you’ll be shocked when you learn about the latest industry developments.
33% Employment Increase in 12 Months
According to a recent Jobs Report, more than 428,000 employees were supported by the cannabis industry by early 2022 – a 33% increase in a single year. Insurance companies already had insight into the significant increase in employment opportunities when they started fielding increased inquiries for workers’ compensation for the cannabis industry. Employers wanted to be sure they and their employees were protected against common cannabis worker problems like repetitive motion injuries, mold and pesticide exposure, and falls.
Flower Is the Most Purchased Product
Cannabis users are spoiled for choice, with an abundance of products available at dispensaries, such as edibles, tinctures, soft gels, and flowers. However, the flower in its raw form is the most purchased product, with sales increasing from $4.92 billion to $5.49 billion between 2020 and 2021. Consumers also spend the most on flowers, at an average of $98, compared to $92 for vapes and $57 for topicals.
Its versatility might contribute to its popularity since cannabis flower can be used to create a range of cannabis products like oils, tinctures, and concentrates.
Legalized Cannabis Is the ‘New Norm’
Cannabis and cannabis products were once flatly banned in most states, but that’s no longer the case. According to new data, 77% of the population lives in a state with at least one form of legalized cannabis.
However, that’s not to say that all cannabis products are legal and freely available wherever you live. California was the first state to legalize medical marijuana in the late 1990s, and it has since been legalized in 39 states. However, recreational cannabis for adults has only been approved in 21 states and Washington, DC.
The Growth Stage Isn’t Over
The marijuana market experienced exponential growth when the 2018 Farm Bill was enacted. Some experts assumed that growth would taper off, but as of 2023, it hasn’t. In fact, Fortune Business Insights predicts that it will increase from around $28 billion in 2021 to more than $197 billion in 2028.
While many factors can affect any industry’s rapid growth, the legalization of medical and recreational cannabis undoubtedly contributed to this industry’s new heights.
Cannabis Is the Most Used Substance
It’s easy to assume that tobacco and alcohol are at the top of the list for the most consumed substances, but marijuana might actually be leading the way. According to the United Nations Office on Drugs and Crime, at least 192 million people worldwide partook in 2018, making it the most-used substance.
Profits Are on Par with Liquor Stores
Starting a cannabis dispensary can cost an average of $800,000, which is a significant investment to make. However, many business owners aren’t daunted by the prospect of such a significant investment when they learn about their venture’s profit potential. Most long-term legal retail cannabis stores enjoy 15% profit margins, putting them on par with most well-established liquor stores.
The marijuana industry in the United States is evolving and showing no signs of slowing down. Whether you’re an industry professional or a user, you might be surprised and excited by the changes and growth on the horizon.