According to Arizona’s Department of Revenue, the legal cannabis industry generated more than $1.2 billion of cannabis sales in 2021 (does not include sales from December) which came in higher than its initial projections.

When compared to first-year recreational cannabis sales data from other states, Arizona recorded much higher sales and our readers should be aware of this. Below, we highlighted the performance of other states’ recreational cannabis market in the first year and find the data to be compelling evidence for a bullish thesis on the opportunity in Arizona:

Colorado generated $292 million of sales
Nevada generated $425 million of sales
Oregon generated $345 million of sales
Washington generated $185 million of sales

2021 was a banner year for the United States cannabis industry and we expect 2022 to build on the success from the prior year. One of the biggest catalysts for the US cannabis industry was the legalization of recreational cannabis in additional states. Following the successful launch of a recreational cannabis market in Arizona, Illinois and Michigan, we expect other states to jump on the legal cannabis bandwagon.

According to Arizona’s Department of Revenue, the recreational cannabis industry generated more than $190 million of tax revenue in 2021. Due to the COVID pandemic, many states have strained balance sheets and we believe that legal cannabis could be part of the answer to a economic recovery.

Cannabis has Benefited States via a Taxable Revenue Stream

By not regulating and policing cannabis, a state can find an avenue to more efficiently utilize the resources on hand and lower the amount of expenses that used to pursue non-violent crimes. The legalization of cannabis provides a state with a growing taxable revenue stream and we believe the benefits clearly outweigh the costs of policing the industry.

Going forward, we are bullish on several emerging markets in the US. From Florida to Pennsylvania, there are several medical cannabis markets that we expect to transition to recreational cannabis markets over the next few years. We are of the opinion that the US is in the early innings of a major growth cycle and our readers should stay be aware of the states that are transitioning from medical cannabis to recreational cannabis markets.

If you are interested in learning about the companies that are capitalizing Arizona’s cannabis industry, please send an email to support@technical420.com with the subject “Arizona Cannabis Operators” to learn more.

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Authored By

Michael Berger

Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.