For U.S. readers - four insights from the Vangst Jobs Report on the growth across the legal markets
Article Written by Adam Isaac Miller
The American legal cannabis industry has navigated through a challenging period marked by the COVID-19 pandemic, regulatory uncertainties, and market saturation in some regions. Despite these obstacles, the industry has demonstrated remarkable resilience and the potential for continued growth. The 2024 Vangst Jobs Report offers a comprehensive overview of the industry's current state, highlighting key trends, regional dynamics, and future prospects. This article explores the five most significant insights from the report, providing an in-depth analysis of the industry's job growth, economic impact, and potential for future expansion.
Robust Job Growth Amidst Challenges
One of the most interesting findings of the 2024 Vangst Jobs Report is the industry's impressive job growth over the past year. The legal cannabis industry added 22,952 new jobs, representing a 5.4% year-over-year increase. This growth brings the total number of full-time equivalent jobs supported by the industry to 440,445 as of early 2024. This achievement is particularly noteworthy given the industry's challenges, such as high interest rates, expensive capital, and delayed invoice payments. The job growth demonstrates the industry's resilience and its ability to create employment opportunities even in the face of adversity.
Contrasting Growth in New and Mature Markets
The report reveals a contrast in job growth between emerging and established cannabis markets. While new markets in the Midwest and East Coast experienced increased job gains, mature markets in the West saw a decline in employment. States like Michigan, Missouri, and Illinois drove most of the job growth, with Michigan adding over 11,000 new jobs and Missouri's first full year of adult-use sales supporting the creation of 10,735 jobs. On the other hand, mature markets such as California and Colorado witnessed job losses due to oversupply, price compression, and increased competition.
This divergence can be attributed to several factors. New markets often experience a surge in job creation as businesses establish themselves and meet pent-up consumer demand. This initial phase of market growth is characterised by the opening of new cultivation facilities, dispensaries, and ancillary businesses, all of which require a significant workforce.
In contrast, mature markets may face market saturation, declining wholesale prices, and increased competition from neighboring states or the illicit market. These factors can lead to consolidation, business closures, and job losses as companies struggle to maintain profitability.
Promising Markets on the Horizon
The report identifies four states most likely to experience significant hiring increases in the coming year: Ohio, New York, New Jersey, and Maryland. Ohio's adult-use market is expected to launch in late 2024, providing a new avenue for job creation and economic growth. Despite their relatively slow start, New York and New Jersey are projected to continue their steady growth trajectory. Maryland's recently awarded 75 additional retail licenses could substantially boost the state's revenue and job count, pending the resolution of financing challenges and legal hurdles. These promising markets underscore the industry's potential for continued expansion and the importance of monitoring regulatory developments in key states.
Substantial Economic Impact
The legal cannabis industry's economic impact cannot be overstated. In 2023, the industry generated $28.8 billion in annual sales, representing a 10.3% increase compared to the previous year. This figure encompasses all state-regulated medical and adult-use sales but does not include hemp-derived products. The industry's sales growth and job creation demonstrate its significant contribution to the American economy.
To Conclude
The 2024 Vangst Jobs Report presents an industry with remarkable resilience and growth potential despite its challenges. The report's key insights highlight the industry's job growth, the contrasting performance of new and mature markets, promising states for future expansion, the industry's economic impact, and the challenges and opportunities.
Adam has spent over eight years working with unregistered medicines. With a specialization in Cannabinoid Therapeutics, Adam has supported the development, implementation, and market entry of multiple cannabinoid product portfolios in markets such as Australia, New Zealand, Germany, and Brazil. Before working in the medical cannabis field, Adam spent almost a decade building various B2B businesses within education, investment, and medicinal cannabis, with progressive roles including business development, strategy, product development, and project management. He has consulted private and listed cannabis producers and ancillary businesses since 2015 as one of the early entrants and experts in the burgeoning Australian cannabis industry. Adam founded and sat on the board of The Medical Cannabis Council, Australia’s first not-for-profit industry body. He is a frequent public speaker and publishes a widely read industry newsletter. Adam earned a Bachelor of Entrepreneurship from the Royal Melbourne Institute of Technology. Adam has appeared in several major news outlets, including the Sydney Morning Herald, The Australian Financial Review, Nine News, Startup Smart, SBS, SkyNews, MJBizDaily, and other major publications.
Disclaimer: This information is shared with a global readership for educational purposes only and does not constitute medical or business advice. All patient-related information has been de-identified OR fictional to protect privacy. Nothing in this article is intended to promote the use or supply of medical cannabis to members of the public.