Will the marijuana industry be worth $51 billion by 2028, a new report suggests?

It appears that cannabis sales growth will continue at a steady pace, as newly released data forecast a continued upward trend in sales into 2028. Despite a current cannabis industry that’s collapsing by the day, the Brightfield Group is looking brighter days ahead for the marijuana market. Margins could drop to very small percentages, but overall sales could still grow as more people gain legal access to cannabis at the state level and possible federal legalization.

On February 16, Brightfield Group released its “US Cannabis Market Forecast,” which revealed a comprehensive analysis of cannabis sales in 2022. The study also includes forecasts for the next five years, from 2023 to 2028. Based on their report, the cannabis market is forecast to surpass $31.8 billion in revenue by the end of 2022 and a staggering $50.7 billion by 2028 to reach.

Although some markets like Arizona and Colorado have seen cannabis sales decline recently, the overall outlook for the industry remains positive. According to Matt Zehner, insights manager at Brightfield Group, this is due to the expansion of cannabis into new markets. As Zehner told Forbes, 2022 was a significant year for cannabis, as sales began in seven state markets, including six for adult use and one for medicinal use, with four only beginning operations in the second half of the year.

He added that cannabis markets in populous states, including New Jersey and New York, are expected to see significant growth throughout the year. Despite their slow start, significant sales growth is expected in both states. In fact, New York only recently started selling in the closing days of 2022, with 2023 marking the state’s first full year in the cannabis market.

Current momentum is expected to continue this year as more states launch their cannabis programs, such as Maryland’s forthcoming adult-use program. Additionally, as Zehner pointed out, markets like Maine and Michigan have already shown steady growth.

Regional sales forecast

According to the Brightfield Group, the eastern region of the United States has the potential for a multi-state hub for cannabis. With nine East Coast states already allowing medicinal cannabis and seven states legalizing adult-use cannabis, the foundation has been laid for this to become a reality.

West Coast states, including Washington and Colorado, are expected to see an increase in adult cannabis sales, with projections suggesting sales could reach $11.5 billion by the end of 2023 and $15.3 billion by 2028. Remember that these are absolute sales only, not profit. Quantity over quality seems to be the prediction in this report. Additionally, newer entrants to the adult cannabis market, such as New Mexico and Arizona, are also expected to be significant contributors to this growth. However, West Coast medicinal cannabis sales are expected to fall from $2.3 billion in 2022 to $2 billion by 2028.

The Midwest region is also poised for a huge surge in cannabis sales, with Missouri set to start selling soon. While adult product sales in Ohio and Minnesota have yet to be approved, those markets are expected to be legalized in the coming years, paving the way for significant growth. Conversely, the southern region of the US is expected to see less change, with medicinal cannabis sales continuing to be the focus in this area.

The popularity of cannabis products

Brightfield Group’s research also looked at the popularity of different categories of cannabis products. Flowers remain the leading product category, with sales of $11.6 billion in 2022. Vape products followed with sales of $5.9 billion by the end of last year, while cannabis-infused beverages hit $290 million in 2022 and have the potential to top $640 million by 2028.

Various market reports indicate that cannabis and other psychedelic drugs will continue to grow in the coming years. A Brandessence Market Research report released in January predicted that the global market for psychedelic drugs, including psilocybin, LSD and ketamine, could surpass $4.87 billion in 2022 and $11.82 billion by 2029.

According to the report, the market for psychedelic drugs has already become very competitive and companies are fighting fiercely for market share. This is due to the increasing acceptance of psychedelics as a treatment option for certain medical conditions. The report finds that the rising prevalence of mental disorders, including depression, and the resulting demand for treatment are key factors contributing to the growth of the psychedelic drugs market.

Additionally, lifestyle changes and desire for higher quality of life are expected to drive the market expansion. The increase in research and development initiatives in the field of psychedelic medicine is projected to drive the market growth over the forecast period.

The burgeoning hemp industry will also see significant growth, with an estimated forecast of up to $18.1 billion by 2027.

Diploma

The cannabis industry is poised for continued growth and expansion over the next few years, with new markets opening and existing markets seeing steady growth. Brightfield Group’s US Cannabis Market Forecast provides valuable insight into how the industry is evolving, with forecasts suggesting the sector will reach over $50 billion in annual sales by 2028. Similarly, the hemp industry is also expected to add significantly in value. Highlighting the growing interest in alternative products with therapeutic benefits. Additionally, the Brandessence Market Research report suggests that the acceptance and demand for psychedelics is increasing, making it another emerging market that could see huge growth in the future.

As the industry evolves, so will the landscape of regulations, consumer preferences, and product offerings. The potential for continued growth in these markets offers numerous opportunities for companies and entrepreneurs to develop new and innovative products and services that meet the evolving needs of consumers. With so much growth potential, the cannabis, hemp, and psychedelics industries are sure to remain hot topics of interest for years to come.

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