That’s a 5.4% growth spurt, adding nearly 23,000 jobs last year alone. If the cannabis industry were a plant, it’d be the one in your garden you can’t stop staring at, amazed at how fast it’s growing.
“This increase may be a sign that the business climate has begun to stabilize somewhat nationally after the turmoil of the past two years,” the report cautiously suggests. Ah yes, the ‘turbulent years’—sounds like a melodramatic soap opera title.
But wait, there’s more!
“Nationwide, annual cannabis sales increased to $28.8 billion in 2023,” the report beams, “a 10.3% rise over 2022’s sales.” That’s right, folks, we’re talking about a market that’s higher than… well, you get the idea. And that’s not even including hemp-derived products. Talk about a green rush!
However, not all is sunshine and rainbows in the land of green. The report points out that 2022 was a rough year, with a contraction of over 10,000 jobs. But fear not, for 2023 was a year of redemption. “After a rough 2022, sales and hiring stabilized and began trending slightly upward in the second half of 2023,” the report cheers, like a coach rallying a team after a tough season.
The report also highlights some regional drama. “Now more than ever, America’s cannabis industry is a state by-state, region-by-region job market,” it explains. It’s like a reality show where each state is competing to be America’s Next Top Cannabis Market. The winners? Young markets like Michigan, Missouri, and Illinois, along with the East Coast trio of New York, New Jersey, and Connecticut.
But spare a thought for the West Coast veterans. “Mature markets in the West were hit by price compression, oversupply, and competition from hemp-derived products and unlicensed sales,” the report laments. It’s like they’re the aging rock stars watching the new bands steal the spotlight.
The report also delves into the nitty-gritty of the industry’s financial woes. “The current era of high interest rates and expensive capital has hit cannabis with full force,” it says, painting a picture of a struggling artist waiting for their big break. A Whitney Economics survey even found that 82% of cannabis companies are grappling with accounts receivable issues.
Yikes!
Despite the hurdles, Vangst and Whitney Economics see “bright spots on the horizon” after a “period of alarming revenue decline.” They predict that mature markets will find their footing, slow-growers will continue to expand, and Ohio will finally join the retail game.
And let’s not forget the elephant in the room—federal reform. “Few expect a significant reform measure to win approval in Congress prior to 2025,” the report sighs. Ah, the tantalizing promise of federal legalization—always on the horizon, but never quite within reach.
In summary, the cannabis industry in the U.S. is like a rollercoaster ride: thrilling highs, stomach-churning lows, and always full of surprises. So buckle up, green thumbs, because the ride is far from over!
Photo by: fauxels
