Why the U.S. Cannabis Industry Will Surpass $30 Billion in 2022

Whenever there is an optimistic and high-rising projection about the cannabis market in any country, it is always an exciting time. Such predictions prove the skeptics wrong and reinforce the fact that the cannabis industry is only getting started.

Recent reports indicate that America will soon surpass the $30 billion mark by 2022, the most significant sporadic annual growth that the country has ever experienced in its marijuana industry.

There is also a recent wave of medicinal and adult-use legalization around the USA, implying that the marijuana sector will outperform other industries with impressive numbers. Interestingly, this increase cuts across all aspects of the marijuana world, from production to retail revenues, etc.

Headset is a well-known research company that has provided a detailed report which considers precise objectives for the marijuana industry. The information was also curated to show politicians what they can expect from the cannabis market.

Headset is a Seattle-based cannabis analytics organization that has shared its recent forecast showing that sales can exceed $30 billion, and we cannot wait for the year 2022 to see this research unfold.

All thanks to the newly legalized states

The projections from Headset also follow the analysis of a comparable report shared in the first quarter of the year. The earlier report concluded by considering imminent adult-use systems in states such as Connecticut, New Jersey, New York, and New Mexico. They also used data from the thriving medical program in Alabama.

Now all five states are set to unveil new marijuana industries in the following year. The consistent inflow of new states legalizing cannabis played a crucial role in this growth projection. The chief data analyst at Headset maintains that these newly legalized states are setting the stage for the future of marijuana in America.

The report from Headset, which was released on Friday, asserts that the American industry will expand with the following progressions:

A 27.7% increase from $18.5 billion to an additional $23.6 billion.

At the end of the year, there is an expected 29.3% which is expected to grow into $30.5 billion in 2022.

These are staggering figures for an industry that has been labeled with all kinds of negative appellations. As more new states legalize cannabis, the projections will go even higher, which means that by 2022, the cannabis industry may exceed the 2022 vision.

Cannabis flowers are still at the top.

The report also states that the cannabis flower will rise in its market share because it is the most significant product in the market. With retain cannabis, the flowers account for 47% of all trades in 2022. This will be a massive 42% leap which is unprecedented in the marijuana industry.

Vape pens and cartridges were also considered standalone products that closely follow flowers within the retail space, accounting for 22% of market sales. Edibles concentrates and pre-rolls each accounted for 10%.

Additionally, there are smaller purchased products such as sublingual infused beverages, tinctures, capsules, and topicals, which account for less than 4% of the industry.

Headset also projects that the lesser Canadian marijuana industry will get to $5.6 billion at the end of 2022. This incredible increment results from the increase in demand for cannabis products in states that have newly legalized marijuana.

Canada's increment will move upward by $4 billion, which will be a growth that is almost double what America will have from 2020 to 2021. The growing rate will be double what is expected in the USA, which means 2022 is a good year for the marijuana market in North America.

Researchers attribute the massive gap in the growth rate between Canada and America to Canada's small marijuana market size. Although the Federal Government in America still has plans to prohibit cannabis, the marijuana market in several states is rising above such restrictions.

The implication of America's projected rise of other cannabis markets

Whenever marijuana researchers study the cannabis market, they always have to refer to the American industry. For many years, American states have been proactive with legalizing and decriminalizing the substance.

More so, any positive story about cannabis emanating from America will create a ripple effect in other nations. The world follows in America's footsteps for its leadership. While cannabis got a bad rep for many years, these optimistic projections will enable other countries to take their marijuana market seriously.

A $30 billion worth of industry is a mind-blowing dream any country will want to actualize. That figure represents access to the revenue, which will also aid their infrastructural development. So now, countries that are still hostile to marijuana use may have to rethink their positions because they will be missing out on all the wealth and healing marijuana offers the market.

Aside from revenue generation, cannabis also immensely contributes to the empowerment of the medical sector with health and wellness products. People will pay for relief from pain and ailments since it has been proven that cannabis can aid healing, doctors will recommend it (when needed), and all of these efforts add value to the marijuana market.

The future of the cannabis industry has always been bright despite current challenges but saying it is not enough. We've also got to become intentional with ensuring that we are working towards making that future possible.

From legislators who love marijuana to users, dispensary owners, and other individuals in the cannabis market, now is the time to ensure that the 2022 projections are attainable.

With increased sales, more favorable legislation on marijuana, and conversations like this on future projections, the future we talk about today will be possible. The American market (States) is ripe and ready for the future, and now other nations need to catch up.

When they do catch up, we will have a more cannabis-accepting and marijuana-enabling-free world.

Bottom Line

The marijuana market in America has always being a leading force globally, showing other countries the way, albeit within its states. It is still unclear if the country's Federal government will change its stance on federal legalization. However, until such changes happen, America is on its way to the $30 billion goals in 2022.