The consumption of cannabis has increased exponentially due to the ongoing legalization efforts in the U.S. The acceptance of cannabis in the public view has also increased over the past few years as numerous studies have gone on to highlight the medical benefits of cannabis.
This trend continued into 2019, even as the pandemic hit – many experts believed that COVID-19 would adversely impact the U.S. cannabis industry, just as the pandemic impacted the country’s economy. However, as time went on the industry saw an unexpected result!
A study revealed that cannabis consumption in the U.S. increased drastically as the pandemic hit. In fact, in 2020 alone, when the entire country was under strict lockdown, there was a staggering 46% increase in the consumption of cannabis as compared to the previous year. In other words, legal cannabis sales in the U.S. hit a record-breaking 17.5 billion in 2020.
Some states like California and Illinois have now increased their revenue numbers by the billions with over 3.5 billion and 1 billion in annual sales respectively.
The Legal Cannabis Industry Will Continue To Grow
The year 2020 has led experts to believe that the consumption of legal cannabis will continue to flourish regardless of the limitations imposed to fight the pandemic. The industry was valued at 10 billion in 2018 and was expected to reach 23 million by 2025. However, based on the new projections, the legal cannabis market in the U.S. is expected to reach 169 billion by 2025. This is based on the projection that the industry will conclude with 2021 surpassing the 100 billion milestone.
Based on those statistics, it is fair to state that this industry has been exceeding expectations when it comes to its contribution to the US economy. It is also among the very few industries in the US that are flourishing amidst the pandemic, enabling the country’s economic condition to get back on track.
The swift growth of the legal cannabis industry in the U.S. is creating more jobs in the community. According to analysts, $2.50 is put back into the economy for every $1 spent on the purchase of cannabis.
To put things further into perspective, California, which is among the leading states where the cannabis industry is thriving, generated 159.8 million dollars in taxes in the third quarter of 2020 alone. This amount excludes the 41 million tax generated through cultivation.
A Positive Impact On Other Sectors
The growth of this industry is not isolated. An increase in the cannabis manufacturing facility requires additional land for cultivation, which directly impacts the real estate sector. Furthermore, the establishment of each new cannabis entertainment complex requires equipment for the development and packaging of the product – this directly impacts the demand for packing machines among other machinery.
People earning from this sector go on to spend in other areas like traveling, buying property, or investing in other businesses. Such initiatives have the capacity of translating the growing cannabis revenues into figures of the country’s economic growth.
Contribution Of States
Each U.S. state has its own set of rules and regulations pertaining to the use of medical and recreational cannabis. For instance, a leading Las Vegas strip dispensary – Planet 13 – follows laws governed by the State of Nevada.
Similarly, each entity from the largest cannabis dispensary to the smallest provider has to follow state cannabis laws. Due to this, each state’s cannabis sector contributes differently to the country’s economy.
In Nevada, the economic impact per person this year would be around $1,917 dollars, followed by an approximately $1,500 dollar per person contribution by Oregon, Alaska, and Colorado. However, this impact is not directly related to the revenue generated by the state. For example, the cannabis sector of California generates the highest revenue from legal cannabis in the U.S. However, its per-person impact would be around $500 dollars.
States like Nevada are taking a step further to pardon thousands of past cannabis convictions to further boost their revenue and per person contribution from cannabis in 2021 and beyond.
The Industry As A Whole
The cannabis industry has continued to perform during the pandemic, and the easing of pandemic-related restrictions are expected to further boost the industry in the U.S. It will also have a direct or indirect impact on the progress of other sectors in the U.S., enabling the country’s economy to get back on track.
Are you looking for top-quality cannabis in Nevada? Head over to the best Vegas dispensary – Planet 13! We are the leading cannabis entertainment complex in Las Vegas where you will find all forms of premium cannabis for consumption. Head over to our store for exceptional in-store service or order online for curbside pickup or delivery! We provide delivery and curbside pickup between 9:00 am and 12:00 am for online orders.