Illinois Is Becoming A Major Growth Engine For U.S. Multi-State Operators

Illinois’ recreational cannabis industry ended 2021 on a high note and generated almost $138 million of revenue in December. This amount is almost 15% higher than the prior month and was a record amount of monthly sales for the state. 

We are especially favorable on this development after recreational cannabis sales in November were lower than what was reported by the state in October.  In late 2021, the US cannabis sector came under heavy pressure after several analysts reported slowing growth and this is a development that our readers should be aware of. 

2021 was a banner year for Illinois’ recreational cannabis market and the state reported approx. $1.38 billion of sales. When compared to 2020, the state recorded a more than 100% increase in recreational cannabis sales and we will monitor how the market continues to perform. 

Although the US cannabis industry came under heavy pressure in late 2020, we believe the industry is still in the early innings of a major growth cycle. A key statistic from 2021 is related to the number of states that sold more than $1 billion of cannabis and we consider this to be a bullish trend. 

We are of the opinion that the US cannabis industry is approaching an inflection point and expect to see pro-cannabis legislation advance in the back half of the year. Last year, the cannabis sector sold off when the SAFE Banking Act was not included in the National Defense Authorization Act (NDAA). We believe the pullback was overdone and are closely monitoring how the sector performs this year. 

From additional states allowing for the sale of recreational cannabis to the advancement of pro-cannabis legislation, we believe the US cannabis industry has significant potential catalysts for growth. Other states that we are bullish on include: Arizona, California, Colorado, Florida, Massachusetts, Michigan, Nevada, New Jersey, New York, and Pennsylvania. 

If you are interested in learning about potential catalysts for the US cannabis industry, please send an email to support@technical420.com with the subject “US Cannabis Catalysts” to learn more. 

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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.

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