High Demand: Marijuana Retail Sales Set To Top $33.5B In 2023, Report Finds

The increase in medical and recreational marijuana legalization across numerous U.S. states is leading to record-breaking sales in the retail market.

However, to ensure long-term success, businesses must build customer loyalty.

Raj Grover, president and CEO at High Tide Inc. HITI stressed that at the Benzinga Cannabis Capital Conference. “An engaged customer is a returning customer,” he said.

What Do The Numbers Say? Sales Figures, Projections And Challenges

According to a recent report by MJBiz, marijuana sales are projected to exceed $33.5 billion in 2023, a $4 billion increase from 2022.

Furthermore, the industry is expected to witness sales nearing $57 billion by 2028, reported Fortune.

This year's US sales are expected to exceed those of craft beer, chocolate, eggs and topical pain relief. Sales figures for weed are projected to be slightly higher than opioids, according to the report.

However, while the industry is booming, the economic downturn has impacted startup funding, resulting in a decline in cannabis capital raises of over 60% YoY and 2022's retail sales falling $3 billion short of expectations, as recently reported by MjBizDaily.

Despite this setback, MJBiz predicts that the number of licensed US marijuana businesses will exceed 165,000 this year with the total economic impact of the industry estimated to increase from $90 billion last year to $100.8 billion this year and reach $170.7 billion by 2028.

Alternative cannabis products gain popularity: Despite the fact that flower sales now account for 40% of overall marijuana sales in the U.S., there has been a shift in the industry towards alternative products like beverages, vapes, edibles and tinctures, which have become more popular than traditional flower sales.

Photo: Courtesy Of Clay Banks On Unsplash