Legislative report projects $72 billion cannabis industry by 2030

A new legislative report presented to Maryland lawmakers this week projects that the statewide legal cannabis market could grow to $72 billion per year by 2030, more than double the current market estimate of $32 billion per year Year. But the report also shows that some states that have legalized cannabis have failed to set clear social justice goals, and that the regulated marijuana market across the country lacks adequate representation of Black-owned businesses.

Maryland lawmakers are studying how legalizing cannabis for adult use would affect the state, where voters will decide whether to legalize recreational marijuana in this month’s general election. On Tuesday, the Maryland House of Representatives’ Cannabis Referendum and Legalization Working Group met virtually to review a report on the climate of statewide cannabis regulation.

A $75 billion industry

The report, prepared by Mathew Swinburne, Associate Director, Network for Public Health Law-Eastern Region of Baltimore, and presented to the working group, includes information from New Frontier Data forecasting steady growth in the statewide market as current markets mature and new states are added to the list of legal cannabis states. The forecast, growing from $32 billion in 2022, estimates a total nationwide market of $72 billion by 2030.

“We know the cannabis industry is a profitable industry,” Swinburne said. “This is a new industry that is filled with economic opportunities and those opportunities are only growing,” he added. “While this industry offers some significant economic opportunities, communities of color are missing out on this cannabis boom.”

Swinburne told the working group that the number of jobs in the cannabis industry has increased from about 321,000 in 2020 to about 428,000 a year later. However, the report also finds that 81% of cannabis companies are white owned and 58% of companies have no employees who belong to minority groups.

Efforts to address the lack of diversity in the cannabis industry have been inconsistent, the report notes. Of the 19 states that have legalized recreational marijuana, Alaska, Maine, Montana, and Oregon have not implemented social justice measures to contribute to more equitable representation in the cannabis industry.

Swinburne highlighted some states’ approach to social justice, noting that Connecticut offers financial incentives for medical cannabis business owners to partner with new small or minority-owned businesses to provide support over a period of time. Massachusetts offers accessible opportunities for market entry by enabling courier and delivery companies to ship cannabis products directly to consumers. And in New York, regulators have created a $200 million fund to support social justice businesses and have prioritized those with prior marijuana felonies for the state’s first 100 recreational dispensary licenses.

Charles County Delegate CT Wilson, chair of the House Economic Matters Committee, asked Swinburne how taxing legal cannabis in other states has affected the illicit market and marijuana sale.

“That’s a definite challenge facing States,” Swinburne replied. “If your goal is to reduce the share of the unlicensed market, you need to keep your licensed market competitive. It is important to emphasize that with the tax revenue you receive, there is a moral obligation to use part of it to repair the damage caused [in low-income communities].”

Prince George’s County Senator Melony Griffith questioned whether any states that have legalized recreational marijuana have implemented policies like a disparity study, which is required “to establish evidence of their racially-biased remedies,” but Swinburne said the report did problem not evaluated in his analysis.

Maryland voters decide whether to legalize weed

In next week’s midterm elections, Maryland voters will decide Question 4, a referendum that would amend the state constitution to legalize marijuana for adults ages 21 and older beginning in July 2023. The measure also directs the state legislature to pass legislation on the use, distribution, regulation and taxation of marijuana.

Currently, marijuana is legal for medical use in Maryland under a 2013 law, while possession of 10 grams or less of cannabis was decriminalized in 2014. Question 4 has overwhelming support from Maryland voters, with a recent Washington Post and University of Maryland poll showing 73% in favor of the proposal.

Prince George’s County voter Tamara McKinney told Maryland Matters that she plans to vote for Question 4, but said she hopes the launch of the state’s marijuana recreational program will provide resources for black and brown communities and those who are concerned about cannabis were arrested. related crimes.

“Decriminalization helps keep our men away from this [criminal justice] system,” she said. “But if keeping them out of the system helps, what are we doing to keep them out? [of jail]? I want them to have more resources than just the ability to get high.”