Cannabis Industry Set To Hit $32B In 2024, Says Economist, With Potential To Double In Coming Years

Beau Whitney, founder and chief economist at Whitney Economics, revealed that total retail sales for the cannabis industry are expected to reach approximately $32 billion in 2024, with the potential to double within the next few years.

At the recent Benzinga Cannabis Capital Conference in Chicago, Whitney presented a detailed report his consulting firm, in collaboration with CTrust and Green Check, prepared.

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"We're forecasting a 2024 total retail sales of right around $32 billion," the economist said.

According to Whitney, the growth of the cannabis industry is contingent upon legal consumer participation and the number of licenses issued in various states.

"Some states don't need any more licenses for the next 10 years. They're oversubscribed, and that was just a lack of discipline by the regulators.”

Furthermore, Whitney's report outlines a potential midpoint of $48 billion in new money for cannabis investments and $78 billion by 2035.

However, he also cautioned attendees about the significant challenges that come with this growth. "At the end of 2023, there was over $3.8 billion in delinquent accounts receivables," he noted, highlighting the financial struggles many operators face, particularly in cultivation.

State Of The Market And Future Outlook

During his analysis of state-by-state investment opportunities, Whitney identified California as a particularly ripe market for retail and product manufacturing investments, while cultivation opportunities are becoming scarce due to saturation.

"Just because there's opportunity for investment doesn't necessarily mean that you're off the hook from a due diligence perspective," he said. Understanding local regulations and market dynamics is crucial for potential investors.

Looking ahead, Whitney pointed to the significant untapped potential in states like Texas. "Some people are already investing in the infrastructure now so that they can take advantage of it when reform occurs," he noted.

The report's findings will soon be available to the public, with an executive summary set to be released next week.

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Photo by Wendy Davis.