The United States anticipates surpassing $31 billion in regulated cannabis sales this year, according to recent projections from Whitney Economics, a hemp and cannabis consulting company based in Portland, Oregon. The estimate suggests that recreational and medical cannabis legal sales will reach approximately $31.4 billion this year, marking a $2.6 billion rise from the previous year, equating to a 9.14% yearly growth rate.
The forecast highlights challenges faced by the industry, including alterations in consumer spending ability, elevated interest rates and postponed enactment of regulations in new state markets post-COVID-19 pandemic. Despite these hurdles, the overall growth of the marijuana industry remains positive, albeit with a decline in marijuana sales witnessed in 10 states, signaling the necessity for new markets to sustain growth.
Whitney Economics’ head economist, Beau Whitney, noted that the most recent estimate is based on a previous market analysis the company carried out. The prediction of a steady increase in legalized marijuana sales has been well received by executives in the sector. However, the projections highlight how important it is that legal changes be made so that marijuana entities can operate similarly to those in traditional industries, including participating in interstate trade and having access to banking facilities.
Missouri-based Illicit Gardens’ head of marketing, David Craig, noted that the presence of cannabis in the economy is undeniable. Further, he stressed the urgency for states to lead the way in removing regulatory barriers for operators, particularly those operating across multiple states.
Sarah Carter, the head of Symple Seeds’ communications, praised the continued growth of the legal marijuana industry. She highlighted the significant $2.6 billion increase from the preceding year, underscoring the market’s momentum and potential. However, she emphasized the importance of tackling enduring problems, such as restricted financial access for marijuana enterprises, which not only hinder operational effectiveness but also present hazards to safety and discretion.
The U.S. House of Representatives has passed legislation on multiple occasions in recent years intending to provide standard banking services to cannabis companies that are subject to regulation. Currently, the Senate is debating an amended version of the banking measure: the Secure and Fair Enforcement Regulation (SAFER) Act. Chuck Schumer, the Senate majority leader, expressed his intention to expedite the passage of the measure last fall.
Carter reiterated the critical importance of resolving the banking issue to unlock the full potential of the industry. Access to banking services, she noted, would streamline operations, enhance financial transparency, instill investor confidence and promote regulatory compliance and responsible business conduct.
As the cannabis industry, including established companies such as Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF), awaits federal action on easing access to banking services, it will have to make do with transacting in cash or patronizing the few state-based institutions willing to take them on as clients.
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