The US cannabis industry is experiencing rapid growth, with retail sales projected to exceed $32bn in 2024 and wholesale sales reaching nearly $12bn, according to a new study from Leaflink.
A decade of expansion has transformed the sector from a single-state market into a nationwide industry supporting 500,000 jobs and over 25,000 businesses across 41 states with some form of cannabis legalization.
As more states implement legal cannabis frameworks, the market is poised to grow to $55bn by 2030, driven by new licensing, retail expansion, and evolving policy landscapes.
October 2024 saw retail sales reach an annual run rate of $33bn, a 7% year-over-year increase, the report details.
Flower remains the top-selling product category, accounting for 40% of retail sales, followed by cartridges (22%), edibles (14%), pre-rolls (13%), and concentrates (12%).
Flower prices stabilized around $1,065 per pound in October, reflecting seasonal pressures from outdoor harvests. States like Alaska and Michigan lead in per-capita sales, with tourism and mature retail networks driving demand.
Emerging markets such as Missouri, Maryland, and New York are seeing rapid growth, fueled by increased licensing and retail expansion. States like Maryland lead in sales per retail license, generating $11.6m per dispensary. Conversely, oversaturation in markets like Oklahoma has driven down sales per license to $0.4m, highlighting the need for strategic license issuance.
The potential federal reclassification of cannabis to Schedule III could lift the 280E tax burden, increasing industry cash flow by $2-3bn annually.
This policy change, coupled with expanding retail infrastructure, is expected to enhance profitability and market accessibility. Additionally, as major population centers establish legal cannabis markets, long-term growth opportunities are anticipated.
While the industry faces challenges such as pricing declines and operational inefficiencies, improved supply chains and strategic market expansion are creating new opportunities.
Key players are focusing on high-growth states like Illinois, Michigan, and Massachusetts to capitalize on rising demand.
