U.S. Cannabis Retail Sales Soar to Record $32 Billion in June 2024
Article Written by Adam Isaac Miller
The growth of the U.S. cannabis industry highlights the value of complete adult us access – managed by the industry. This year, the markets across the country reached a millstone of retail sales, hitting a $32 billion annual run rate as of June 2024. The data reported in LeafLink's Summer 2024 market analysis notes an impressive 10% year-over-year increase
Ben Burstein, corporate development manager at LeafLink, attributes this surge to various factors. "This year, average monthly retail sales in cannabis rose by 5.1%, with states like New York, Maryland, Florida, Michigan, and Missouri leading the charge," Burstein explained. These states have seen substantial sales increases due to improved consumer access and the rollout of adult-use cannabis sales.
The transition from medical-only to adult-use markets in Missouri and Maryland has been particularly impactful, resulting in a 2-2.5x increase in total retail sales compared to early 2023. This trend highlights the significant potential for growth as more states consider similar policy changes.
Despite Federal legislation banning the supply of cannabis for adult-use sale, the industry's expansion shows no signs of slowing. LeafLink projects a $7 billion increase in total U.S. retail sales over the next two years, with 60% of this growth expected to come from states with the highest pending license issuance. New York and New Jersey are poised to add roughly $1.3 billion each in annual sales, driven by a surge in new retailers, processors, and cultivators.
Future Outlook: Tourism, Federal Policy, and Market Projections
One of the biggest opportunities for adult us markets across the state is cannabis tourism. States like Alaska and Nevada, with their high tourist influx relative to local populations, see substantial cannabis consumption from visitors. "Tourists have a high propensity to consume cannabis products while on vacation," Burstein noted, highlighting an often-overlooked driver of industry growth.
On the federal front, the potential rescheduling (despite recent delays) of cannabis to Schedule III could increase the market by an additional $2-$3 billion annually.
The report outlines that despite the rapid expansion, maintaining price stability remains a key focus for operators, particularly in mature markets like California and Oklahoma. The industry is managing to keep prices stable by right-sizing supply in line with demand, although the upcoming outdoor harvest could lead to some price fluctuations.
The report states that the market may reach $50 billion by 2023, with the majority of this increase due to increased retail accessibility and reform in large population centres.
The market's growth contributes to the migration of black-market use, the increase in economic output, and the development of jobs. This year, the legal cannabis industry added 22,952 new jobs, bringing the total number of full-time equivalent jobs supported by the industry to 440,445 as of early 2024.
Despite the challenges of product saturation and the lack of federal legislation to match the states, the adult-use market seems to be thriving!
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 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.