The recent Green Rush wave of recreational cannabis legalizations in multiple states, which include Connecticut and New York, has caused one prominent industry market researcher to revise its U.S. forecast for 2022 to $30 billion. This is a jump from the previous $28 billion estimate. Not only that, but according to a quarterly update report by Headset, a provider of data and analytics for the cannabis sector, U.S. market growth will not be slowing down anytime in the near future; in fact, a higher year-over-year growth rate is expected in 2020. Conversely, little has changed in Canada’s market forecast, which is still estimated to rack up $4 billion by the end of this year.
Other key takeaways from the report include:
*Category share in the U.S. will see little change between 2020 and 2022, with certain trends balanced out by new legal markets;
*Flower will remain the main growth driver for the U.S. market well into 2022, when its contribution to total market sales reaches 47%;
*In Canada, flower share drops 6.5% between 2020 and 2022 from 57.5% to 51% while all other categories remain fairly stable;
*From 2021 to 2022, pre-roll growth contribution in Canada significantly increases from 23.4% to 29.2%.
The report encompasses 13 Canadian provinces and territories and 36 U.S. states and jurisdictions with any level of legalization (recreational and medical). For Headset’s new methodology, forecasts cover at least fifteen months and at most two years.
Headquartered in Seattle, Headset focuses on collecting and analyzing consumer transaction information.
To download a copy of the report, click here.