The latest report suggests adult cannabis sales growth of up to $50.7 billion by 2028

Brightfield Group recently released its US Cannabis Market Forecast on Feb. 16, which compares cannabis sales in 2022 to five-year sales forecasts between 2023 and 2028. According to the report, the cannabis industry is poised to reach more than $31.8 billion in annual sales by the end of this year, with a projected figure of $50.7 billion by 2028.

The cannabis industry has recently seen sales slump in some markets like Arizona and Colorado. Matt Zehner, Brightfield Group’s insights manager, says the prospect for cannabis sales is due to the expansion of cannabis into other markets. “2022 was a big year for cannabis, with seven state markets beginning sales (six adult use, one medicinal), four of which only started in the second half of the year,” Zehner told Forbes. “These markets are expected to see significant growth throughout the year, particularly in populous states like New Jersey and New York, both of which have been somewhat slow to open up so far. New York only started selling in the last few days of 2022, making 2023 effectively the first year of the market.”

That pace is expected to continue year-round, and states like Maryland are preparing to launch their adult program as well. Tener also cited Maine and Michigan as steady growth markets.

At a regional level, Brightfield Group notes that the eastern US has the potential to become a multi-state hub for cannabis. Nine of the East Coast states have medical cannabis and seven have legalized adult-use cannabis.

Adult cannabis sales from West Coast states, particularly Colorado and Washington, could grow to $11.5 billion by the end of 2023 and $15.3 billion by 2028, as Arizona and New Mexico are also expected to increase contribute to this projection. However, West Coast medicinal cannabis sales are expected to decline from $2.3 billion in 2022 to $2 billion by 2028.

A growth explosion is expected in the Midwest, and sales will soon begin in Missouri. Although it hasn’t yet been approved for sale to adults in Ohio or Minnesota, those markets are expected to be legalized in the next few years.

The southern region of the US will likely see the least growth, with the primary focus being on medicinal cannabis sales.

Brightfield also examined the popularity of cannabis product categories and found that flowers still lead the industry with sales of $11.6 billion in 2022, followed by vape products with sales of $5.9 billion through 2022 Late last year and eventually infused beverages, which reached $290 million in 2022 and could potentially reach $640 million by 2028.

Other market reports are also noting how cannabis, as well as the expansion of psychedelics in general, will continue to grow. According to a Brandessence Market Research report released in January, the global market for psychedelic drugs (such as psilocybin, ketamine, and LSD) could reach $4.87 billion in 2022 and $11.82 by 2029.

The report notes that the market is already highly competitive, both with companies eager to break into their businesses and due to the increasing acceptance of psychedelics for certain medical conditions. “Furthermore, the rising prevalence of depression and other mental disorders worldwide and increasing demand for treatments are the key factors behind the growth of the psychedelic drugs market,” the report states. “Moreover, changes in lifestyle and the desire for a higher and better quality of life [are] expected to contribute to market growth. And also the increase in R&D initiatives in the field of psychedelic medicine is expected to drive the market expansion over the forecast period.”

Likewise, the hemp industry is also on the rise, with a forecast of up to $18.1 billion by 2027.