Despite the effect of the coronavirus pandemic on various industries, the cannabis industry in Oregon has persisted, with forecasts showing that cannabis sales will continue to increase. An economic forecast report released by analysts with the Office of Economic Analysis in the state’s Department of Administrative Service stated that while cannabis sales in the winter aligned with forecasts, sales in the recent months had grown.
The report notes that it isn’t clear whether the cannabis sales data shows increased spending power from stimulus checks that were sent out in March or a growth in demand for marijuana products. It does highlight, however, that other states where the plant is legal, such as Illinois, have recorded similar trends in their marijuana sales during this pandemic period.
In the report, the economic analysts stated they were focused on how much the demand for recreational cannabis would increase in the near future. They explained that they were using federal data collected on the proportion of the adult population who use marijuana, noting that in the state, the rate has been about 20%, which may indicate slow sales in the future. However, the analysts added that the information could be biased given that this was a federal survey and cannabis is still illegal at the federal level.
Generally, the analysts noted that they expected cannabis sales in the short term to remain on the higher side because of an economy with options of entertainment that aren’t fully reopened, strong household finances and the ongoing pandemic. They add that as factors related to the pandemic are resolved into the fall, sales will slowly decline.
However, cannabis sales in the long term are expected to grow. The analysts speculate that this may be brought about by an increase in wages as well as a growth in the state’s population, which will boost demand. Prior projections showed relatively minimal growth in the future as the recreational cannabis segment matured. The analysts assert that while this assumption fundamentally remains unchanged, growth may still increase, prompted by underlying gains in the economy.
Recent projections for marijuana tax revenue in the state show that more than $300 million will be generated in the 2019–21 biennium. The analysts note that this figure will continue increasing each biennium, surpassing $450 million in the 2027–29 period. Currently, some of the tax generated is being used to finance the expansion of the state’s substance misuse treatment.
Last year, voters in the state passed a drug decriminalization measure that called for some cannabis tax revenue to support these services.
Those impressive projections might be viewed as a silent acknowledgement of the different sector players, including Chalice Brands Ltd. (CSE: CHAL) (OTCQB: CHALF), that have done a lot to bring to market products that consumers are drawn to.
NOTE TO INVESTORS: The latest news and updates relating to Chalice Brands Ltd. (CSE: CHAL) (OTCQB: CHALF) are available in the company’s newsroom at https://cnw.fm/CHALF
About CNW420
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
To receive instant SMS alerts, text CANNABIS to 21000 (U.S. Mobile Phones Only)
For more information please visit https://www.CNW420.com
Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW420, wherever published or re-published: http://CNW.fm/Disclaimer
Do you have questions or are you interested in working with CNW420? Ask our Editor
CannabisNewsWire420
Denver, Colorado
http://www.CNW420.com
303.498.7722 Office
Editor@CannabisNewsWire.com
CNW420 is part of the InvestorBrandNetwork.
