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Thursday, June 24, 2021

U.S. Cannabis Sales Soars Hitting $17.7 Billion

Last updated Saturday, May 8, 2021 12:21 ET , Source: kissprnews

Cannabis sales in the United States reach a new high of $17.5 billion. 2020 can be said as a breakout year for marijuana sales and consumption

Dallas, TX, United States, 05/08/2021 / SubmitMyPR /

The coronavirus was beneficial to some industries while being detrimental to others. 2020 was a watershed moment for cannabis. According to a recent survey, legal sales in the United States—14 states allow adult use, 36 allow medical sales—reached a total of $17.5 billion, a 46 % rise from 2019.

"U.S. Cannabis Sales Hit Record $17.5 Billion As Americans Consume More Marijuana Than Ever Before. The coronavirus was good for some industries and ruinous for others. For cannabis, 2020 was a breakout year." [1]

According to Nielsen, several factors contributed to the industry's growth last year: the Covid-19 pandemic (many states designated pharmacies as "key businesses" during lockdown); more consumers joined mature markets such as California, Colorado, and Oregon; and states such as Illinois and Arizona developed new adult-use markets.

Another easy factor driving the industry's growth is that so many people consume cannabis more than ever before. Approximately 30% of consumers polled by BDSA said they shop for cannabis products more often, and 25% said their cannabis use has risen since well before the pandemic.

Increased Sales By 26 % to $2.2 Billion

As per a report published by BDSA, a cannabis sales data platform, the majority of the sales growth came from adult-use markets, especially established markets like Colorado, which increased sales by 26 % to $2.2 billion, and Oregon, which saw sales reach $1.1 billion, a 29 % increase over 2019.

Furthermore, the arrival of the pro-cannabis Biden administration, backed by a Democratic majority in both Houses, has altered the legislative environment in the United States.

Increasing Sales

Emerging economies, such as Illinois, which extended its medical cannabis business to include adult-use sales last year, saw the highest dollar increase in 2020, rising by $784 million. (The cannabis industry in Illinois is now worth more than $1 billion.) California, with a $3.5 billion cannabis economy, increased revenue by $586 million, while Florida increased sales by $473 million.

Across all adult-use markets in the United States, the number of individuals who used cannabis at the end of 2020 was higher than six months earlier. People are residing in states that have legalized recreational cannabis use it at a rate of 43 %, up from 38 % previously. In Colorado, where the share of the market is highest, 48 of Coloradans consume alcohol.

Market penetration in California rose from 37 % to 39 %. According to Josh Bubeck, co-founder of Urbn Leaf, a seven-store cannabis distributor headquartered in southern California, 2020 was a challenging year for his business, but it achieved record sales. Urbn Leaf's expansion was fueled in large part by the fact that it increased its footprint. And, though Covid-19 boosted local business, some Urbn Leaf locations, particularly those that attract tourists, suffered worse in 2020.

Cannabis legalization

The enforcement of cannabis legalization has also helped Bubeck's company, indicating that the industry is maturing. Until last year, the corporation's shop in San Ysidro, just north of the border with Mexico, was filled with hundreds of unauthorized dispensaries, which were shut down by the city of San Diego. Much of the foot traffic ended up at legal establishments like Urbn Leaf.

According to him, the most difficult aspect of handling the pandemic as a company owner was managing the workforce and the logistical issues faced by Covid-19. If only one person in the company's supply chain tested positive, everyone within 6 feet of them for more than 15 minutes was required to quarantine.

Bubeck does not want to revisit 2020, although his company did more business than ever.

RESOURCE

[1] https://www.forbes.com/sites/willyakowicz/2021/03/03/us-cannabis-sales-hit-record-175-billion-as-americans-consume-more-marijuana-than-ever-before/?sh=540b982e2bcf

Original Source of the original story >> U.S. Cannabis Sales Soars Hitting $17.7 Billion


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