​U.S. Cannabis Sales Forecast 2024

U.S. Cannabis Sales Forecast 2024

Cannabis has had a turbulent history in America. From once being considered the "gateway drug," to now dispensaries opening up in major cities across the U.S.

Individuals once charged with simple possession or use of cannabis are being pardoned for their prior charges. It was not easy, but now the cannabis industry is flourishing into a significant industry where there is no shortage of people looking to expand into the business. 

This expansion is all the more evident with recent projections putting the legal sale of cannabis to exceed $31 billion in 2024. If these projections were to come true, it would mark a 9.14% increase from the 2023 total. This total is a remarkable increase for any industry, let alone an industry still in its early years. 

Below, we will examine some contributing factors to this industry's growth and what needs to happen for it to continue.

What has helped the cannabis industry grow?

There is never one factor that helps an industry grow. Of course, the main thing is that more people are buying a particular product. However, businesses need to be innovative and calculative to attract customers. Here are some things the cannabis industry has done to raise its sales through the years. 

● Cannabis tourism - Cannabis is not simply an American thing or something only Americans find satisfying. All across the world, people use cannabis, but unfortunately, not all countries are as open to cannabis as America. This inaccessibility leads to some people coming to America not only to enjoy the sites but to buy and enjoy cannabis. The industry has honed in on this and taken its marketing strategies globally to bring cannabis consumers from across the world to America to satisfy their cannabis desires. 

● Celebrity endorsement—One of the best ways to remove a stigma is to have influential people endorse a particular product. The cannabis industry has enlisted many celebrities, some known cannabis consumers like Mike Tyson and Berner (Gilbert Anthony Milam Jr.), to either start their strains or their businesses outright. These endorsements draw more people in because the more people see others using something, the more it normalizes this, and they feel comfortable trying it. 

● Legalization changes—Not every state in America allows for cannabis consumption, but more are opening their doors. This rise in legalization is partly due to public opinion and its economic benefits to the state. These new legalization laws mean more people have easy access to cannabis instead of having to make an expensive trip to another state where it is legal, which may not be an option for some. Over 74% of Americans now live in a legal marijuana state. 

● More options - For many decades, there were only a couple of ways of consuming cannabis. But now, in the modern day, the industry is pushing many new and innovative products, such as vaporizers, beverages, gummies, and much more. These new items give people who may not wish to engage with cannabis in the one or two ways best known more options. Some people may still want to keep their cannabis consumption discreet, so enjoying an alternative like a cannabis beverage is excellent for them. This discretion and growth of options bring in more people who may wish to explore cannabis consumption. 

What obstacles could prevent further growth in the cannabis industry?

The cannabis industry's growth has been exceptional, and there is hope the growth will continue past 2024. However, some roadblocks still prevent the sector from reaching its full potential. 

● Regulatory/ banking policies—Despite the growth of the business and the decline in social stigma, cannabis still has issues engaging with specific sectors, most notably the banking sector. With cannabis still being illegal on a federal level, many banks will not work with cannabis businesses, thus making it difficult for these businesses to acquire capital and further expand and innovate. Congress, through the House of Representatives, has passed a bill to help the industry gain access to these banking services. Still, there has not been a passing vote in the Senate. 

● Inaccessibility to new markets—As the previous section mentioned, more states have been opening the door to legalize cannabis consumption, either recreational, medicinal, or both. However, many states still have yet to open their doors. The industry could potentially face stagnation if it cannot expand into more markets. This stagnation may already be occurring, with ten states witnessing the sale of legal cannabis declining. This decline means the industry will need continued access to new markets.

Growth is not a guarantee in any industry. Still, cannabis has a lot of upside for users and the economy at large. The more policymakers see this, the more likely the changes will occur. 

Conclusion 

It has become a reality that the cannabis industry is becoming a significant player in the American economy. There was once skepticism about the prospect of legal cannabis and whether it could genuinely push past the significant hurdles it had in its initial days of operation. While many hurdles remain, the future still looks bright for the cannabis industry. As a result, it creates a bright future for cannabis users.