Nationwide, US--The cannabis industry in the United States is projected to generate an economic impact exceeding $100 billion in 2023, marking a 12% increase from the previous year, according to a recent analysis in the MJBiz Factbook.
[Image via MJBizDaily]
The report also predicts that by 2027, over $160 billion in additional spending will be added to the US economy, spurred by the emergence and expansion of new recreational and medical markets in states such as New York, Maryland, Missouri, and Kentucky.
To estimate the industry's economic influence, MJBizDaily analyzed comparable sectors, consulted economists, and applied a standard 2.8 multiplier to anticipated recreational and medical cannabis retail sales.
The projections offer the best approximation considering the marijuana industry's rapid expansion, governed by diverse state regulations while remaining federally illegal.
The cannabis industry comprises a variety of agricultural, manufacturing, and retail businesses, as well as ancillary companies like lighting suppliers and legal and accounting firms.
Some markets include cannabis events and hospitality businesses, which tend to generate even higher economic impacts.
The industry's economic impact differs from supply-chain revenue, commonly used to calculate an industry's "total size."
The MJBiz Factbook forecasts that US adult-use and medical cannabis sales will reach $34 billion in 2023, up from a revised $30 billion in 2022.
The economic multiplier offers insight into the cannabis industry's broader influence on the economy. For instance, for every $10 spent at marijuana retailers or dispensaries, an additional $18 is injected into the economy, primarily at the local level.
The cannabis industry significantly affects the overall economy, both locally and nationally, through the daily needs of its workers, including housing, transportation, and entertainment.
Taxes collected from cannabis businesses and consumers also play a part, as they contribute hundreds of millions of dollars to state and local budgets, funding government initiatives such as schools and roads.
Additionally, the industry positively affects real estate, as new and expanding cannabis businesses increase demand for commercial properties.
Learn more in this report.