US Cannabis Market To Grow To $17.7 Billion By End Of 2020

New Brightfield Group data shows cannabis sales will increase by 24% this year

CHICAGO (June 24, 2020) – The US cannabis market will grow in 2020 to reach $17.7 billion by the end of the year, an increase of 24% over 2019. 60% of these sales will come from adult-use markets, an increase of 3.4% from 2019. By 2025, we expect adult-use sales to make up 76% of the market as states continue to legalize and open markets expand. The US Cannabis market is estimated to grow to $43 billion through 2025.

The Eastern US will be the biggest driver for growth as major population centers fully legalize cannabis in the coming years. Markets in the West will continue to grow, and California will remain the largest market in the country. The Midwest will drive growth with Illinois and Michigan’s adult-use markets at the forefront. The other restrictive medical markets in the region will prevent it from being on-par with the East or West. The South is expected to lag, maintaining both the lowest rates of medical and adult-use legalization in the nation.

COVID-19 has impacted cannabis markets across the country. Massachusetts and Nevada markets came to a standstill, the former by state mandate and the latter from lack of tourists. Open markets where cannabis was deemed “essential” still experienced delays in licensing and other government-run provisions, while medical markets were prioritized to maintain patient access.  

“Due to COVID-19, dispensaries around the country had to make operational changes, such as adding curbside pickup and online ordering,” explains Kay Tamillow, Brightfield Research Director. “Despite this, many dispensaries saw an increase in sales as consumers began to ‘stock up’ on products to limit the number of trips they would have to make. It will be valuable for dispensaries to consider the click-and-collect model as part of their overall marketing and customer acquisition strategy even when virus cases go down."

Despite these trials, cannabis markets are still seeing growth as loyal users continue to purchase and new consumers continue to enter the market. Brightfield closely monitors the US cannabis market on an ongoing basis. Get the free June 2020 US Cannabis Market Report

 

About Brightfield: Brightfield Group is the leading consumer insights and market intelligence firm for the CBD and Cannabis industries. They work with well-known brands, manufacturers, and agencies across the world, providing strategic data, insights, and guidance for these dynamic markets. Leveraging a unique multi-source approach, Brightfield Group delivers a holistic, forward-looking view into the everchanging brand, market, and consumer landscape.