The US cannabis industry is ‘thriving’ despite (or because of?) The general economic downturn

By Natan Ponieman

While the cannabis industry is known for offering investors its own mix of tricks and treats, a new report from CNN Business expresses new hope for the cannabis sector.

“Despite a global pandemic, jumbled supply chains, rising inflation, and an ongoing battle to legalize marijuana at the federal level, the cannabis industry is thriving in America,” writes CNN Business.

Photo by Hillary Kladke / Getty Images

The report cited data from Marijuana Business Daily, which said cannabis sales hit $ 20 billion in 2020, hit $ 26 billion this year, and are projected to rise to $ 45.9 billion in 2025, which will make the cannabis industry bigger than the craft beer industry by the middle of the decade.

Chris Walsh, chief executive officer and president of MJBizDaily, a cannabis analytics company that hosted the industry’s largest trade show last week, said, “These are potentially conservative numbers with what we’re seeing.”

Cannabis to the moon

With the majority of Americans now living in a state where some form of cannabis is legal, the industry received a significant boost when pharmacies were considered essential businesses during the pandemic and quickly became worthy recipients of additional money people made out Urgent need had stimulus checks on hand. And not to mention the COVID-19 restrictions kept people at home and in front of their TVs or on Netflix.

RELATED: The Cannabis Industry “Substantial” Benefit From COVID-19

Be that as it may, “the past 12 to 18 months have shown that there is more to the story than a COVID bump,” said Walsh, as “sales in US markets continued to accelerate at a record pace – especially in established ones States like Colorado, Washington and Oregon. “

Walsh told CNN that we are entering the next phase of a maturing industry, which is also reflected in expanded private capital-raising opportunities and a growing job market.

“The industry is also growing rapidly and creating jobs. It is estimated that there were 321,000 full-time positions in the cannabis industry in 2020, up from 234,700 the previous year, ”said Karson Humiston, CEO and founder of Vangst, a company that provides recruitment services to the cannabis sector.

RELATED: 32% Cannabis Job Growth In 2020, Despite COVID-19

According to the federal cannabis reform, the jury has not yet decided whether the Biden government will be the one to finally bring the balance to the legal cannabis market.

Walsh said that on Capitol Hill, the whispers about federal marijuana reform and legalization has grown to an outcry. Due to the lack of agreement between legislators and industry representatives, however, no change is in sight, he said.

“I still doubt we’ll see any major federal reform next year … including banking,” Walsh told CNN Business.

RELATED: COVID cannabis use is expected to remain high after the pandemic

Benzinga’s Opinion: With or without federal reform, the meteoric rise of cannabis will continue, leading to the question of what lawmakers and prohibitionists are thinking. Alexandre Auguste Ledru-Rollin, one of the leaders of the French Revolution, was right: “There my people go. I have to find out where they are going so that I can guide them. “

This article originally appeared on Benzinga and was republished with permission.