U.S. Legal Cannabis Market Forecasted to Surpass $31 Billion in Sales in 2024

LOS ANGELES- In a notable advancement for the cannabis industry, legal sales in the United States are forecasted to exceed $31 billion this year, according to an economic forecast from Whitney Economics, a consultancy specializing in the cannabis and hemp sectors. This projection indicates a substantial increase in the market, with sales expected to reach $31.4 billion in 2024, up by $2.6 billion from the previous year, marking a growth rate of 9.14% year over year.

This growth comes despite the industry facing challenges such as changes in consumer purchasing power, increased interest rates, and delays in implementing regulations in newly legalized states. While legal cannabis sales declined in 10 states, the industry’s overall trajectory remains positive, necessitating new markets for continued expansion.

Beau Whitney, Chief Economist at Whitney Economics, highlighted the accuracy of the firm’s predictive analytics, noting a near-perfect match with previous forecasts. Whitney emphasized the strength of the legal cannabis market in the U.S. and anticipated growth driven by newer markets, despite near-term uncertainties.

Industry Leaders Call for Regulatory Reforms

The positive outlook for the cannabis industry has been met with calls for regulatory changes from industry executives. These changes include enabling interstate commerce and providing access to banking services, aligning cannabis businesses with other sectors.

David Craig, Chief Marketing Officer of Missouri-based Illicit Gardens, stressed the importance of state-led initiatives to overcome federal inaction on cannabis scheduling. Craig called for standardized regulations across states to alleviate the operational burdens faced by businesses, comparing the disparate state laws to operating in different countries.

Sarah Carter, Communications Director at Symple Seeds, echoed the sentiment regarding the industry’s growth and the critical need for banking access. The current banking restrictions pose challenges for operational efficiency, safety, and transparency within the cannabis sector. The Secure and Fair Enforcement Regulation Act, pending in the U.S. Senate, aims to address these banking issues, with Majority Leader Chuck Schumer expressing intent to expedite its consideration.

The cannabis industry’s projected growth and the calls for regulatory reforms underscore the sector’s potential and the importance of addressing the challenges it faces. With the industry on an upward trajectory, stakeholders emphasize the need for supportive legislation to ensure sustainable growth and the realization of the cannabis market’s full potential.