Americans on the way to spending twice as much on weed as on milk

According to data analyzed by Leafly and Whitney Economics, Americans spent more than $ 12 billion on legal cannabis products in the first six months of 2021.

That’s almost as much as Americans spent on milk in 2020. According to the Dairy Farmers of America, consumers spent around $ 12.6 billion on milk last year.

Cannabis sales exceeded $ 18 billion in 2020. The six-month trend in 2021 is pushing the industry to reach $ 25 billion to $ 26 billion in revenue by the end of the year. That would correspond to an increase in sales of around 35% compared to the previous year.

This growth would cement the cannabis industry’s position as the fastest growing industry in the country. In 2020, sales revenue increased by around 60% compared to 2019, driven by increased purchases during the coronavirus pandemic.

Leafly and Whitney Economics forecast sales of $ 25 billion in 2021 based on data from the first half of the year.

Some mid-year highlights:

• Mid-year revenue is approaching $ 12.5 billion (medical and adult combined) after revenue of $ 5.8 billion to $ 5.9 billion in the first quarter.
• With forecast sales of $ 6.2 billion to $ 6.5 billion for the second quarter, the U.S. legal cannabis market is gaining momentum for a strong second half.
• Based on the latest sales data, Whitney Economics raised its forecast for 2021 from $ 22.2 billion to $ 25.0 billion and raised its forecast for 2025 to $ 44.9 billion

Massachusetts on track to break $ 1 billion in 2021

In Massachusetts, legal cannabis sales are expected to hit $ 1.2 billion in 2021, up about 70% from 2020. The state’s adult stores opened in November 2018. Since then, Massachusetts retailers have sold more than $ 1.8 billion in cannabis products.

Michigan sales pick up

Sales in Michigan saw a big spike as winter gave way to spring, with monthly sales increasing to $ 150 million from around $ 100 million in March and April. If this trend continues, Michigan’s sales would reach $ 1.6 billion in 2021, a 65% increase from 2020 sales.

Illinois is growing a little slower

Illinois also tends to have annual sales of $ 1.2 billion in 2021, up 20% from 2020. The rollout of retail cannabis stores in the state has been delayed by political battles over licenses and equity.

For full information on legal cannabis sales and cannabis jobs, see the Leafly 2021 Jobs Report, produced in partnership with Whitney Economics.

Bruce Barcott

Leafly Senior Editor Bruce Barcott oversees news, research, and feature projects. He is a Guggenheim Fellow and author of Weed the People: The Future of Legal Marijuana in America.

View article by Bruce Barcott

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