The U.S. economy is projected to receive $ 92 billion from legal cannabis this year
It’s no secret that the cannabis industry is making all kinds of money for the industry, but now there are official numbers to back it up. Even without full legalization, legal cannabis is set to gross nearly $ 100 billion in the U.S. economy in 2021.
That’s a 30 percent year-over-year increase and a figure of $ 169 billion is projected for 2025. According to the MJBizDaily analysis, this was done by looking at similar industries and using a standard multiplier of 3.5 for forecasting sales, which includes activities in agriculture, manufacturing and retailing.
Upon closer inspection, this shows what the future of cannabis will be and how it can continue to benefit the US economy over the years. In this particular instance, analysts predicted that for every $ 2.50 spent by consumers and patients in the retail and medical markets, an additional $ 2.50 would flow back into the economy. This also has a significant impact on the local economy across the country.
This is because of the daily needs of workers in the industry, including housing, transportation, food and entertainment expenses. By creating more jobs in the legal and regulated cannabis industry, cannabis continues to give back and help boost local, state, and national economies.
In addition, the taxes incurred on the sale of recreational and medicinal cannabis bring hundreds of millions of dollars into the economy through taxes, which in turn are used to fund local government and state activities. How that taxpayer money is returned to the region varies from state to state. However, some popular uses are to fund schools, roads, and addiction treatment programs.
Now that the legal cannabis industry is expanding and booming in many states, there is further growth in real estate, retail, manufacturing, and agriculture in states that have legalized the plant. Many companies and individuals move into legal areas due to the existence of recreational and / or medicinal cannabis markets.
Similarly, money comes from investments in equipment and technology necessary to operate cultivation and processing facilities.
US economy at the local and state levels
Of course, this breakdown depends on a number of factors, including the size of the market in states, whether or not they allow recreational cannabis, how large the medical market is, and how long cannabis has been legal.
Some states not alien to legal cannabis have seen a serious boom recently, including California, the largest cannabis market in the United States. The industry is expected to raise around $ 20 billion for the state in 2021. Colorado, Illinois, Oregon, and Washington are projected to be closer to $ 10 billion each. Now that new industries of similar size come into operation, including New Jersey and New York, similar amounts are expected to be generated in these areas. There are bound to be many cannabis users in these populous areas.
While other states may have smaller populations, they can still see a huge impact from legal cannabis. Nevada is expected to add about $ 1,917 to the economy per person who uses and buys cannabis. Alaska, Colorado, and Oregon are projected to generate about $ 1,500 per person. California will contribute about $ 500 per person, but overall the industry is still the leader.
It is difficult to say exactly how much the industry will benefit from this in the future, as it remains to be seen who, when and when, or whether federal legalization will be legalized in the coming years. Still, the fact remains that the numbers are monumental now and looking ahead may give more insight into what the industry has to offer in the years to come.