A report from Brightfield Group, exploring the current US cannabis market landscape, has forecast sales to reach $50bn by 2026.
As state authorisation of cannabis has spread across the US, federal legalistion is still awaited by the US cannabis market. The Brightfield Group report, Expanding Shelves: The Road to a $50 Billion Cannabis Market, however, highlights willingness from Democratic members of Congress to liberalise cannabis banking and legitimise the industry.
2021 has seen several more states authorise both adult and medical use of cannabis, and uncertainties from the COVID-19 pandemic are no longer impacting market and sales growth, says the report, contributing to its forecast of $50bn in sales by 2026.
“Federal reform would likely provide companies in CPG, alcohol, tobacco, and Canadian cannabis enough regulatory clarity to confidently enter the market. As states open their markets one by one, multi-state operators that can get their brands on shelf first will have the competitive advantage.”
In its regional analysis, Brightfield forecasts that the Eastern region will be the biggest driver of growth due to major population centers beginning cannabis sales in the coming years. However, it also highlights that by 2026, all Eastern states are expected to offer legal adult-use cannabis “making it the first regional cannabis bloc in the nation.”
The flower, edibles and concentrate segments are all poised for rapid growth. Drinks will see particularly strong growth through to 2026, and concentrates will be led by vapes throughout 2021 and 2022, “but continued growth will come from raw concentrates.” Experienced consumers will be looking for products such as rosin, live resin, shatter and budder, which will contribute to this.
Read the forecast for the European cannabis market
Brightfield Group states in the report: “US cannabis has grown to be more than a bunch of small companies operating in a few states. The industry is reaching the big leagues.
“Multi-billion dollar companies are developing national chains while legalisation rapidly expands. Cannabis has reached unprecedented levels of adoption and acceptance, this is now officially a consumer packaged goods industry.”
To read the report in full click here.
[activecampaign form=31]
