Demand for cannabis has been rapidly increasing in the United States (US) and we are of the opinion that the primary growth driver has been the growing number of states with a legal medical or recreational market.

Although the North American cannabis market reported impressive growth in 2021, the sector has been under considerable pressure. We believe the recent weakness is overdone and are bullish on the long-term growth prospects that are associated with the North American cannabis market (especially in the US).

January was a challenging month for the cannabis sector as well as the overall market. Following a tough start to the year, we conducted a different type of analysis on the US cannabis industry which raised our conviction level in the sector’s long-term potential.

During the last decade, the landscape of the US cannabis industry has changed. Currently, recreational cannabis is legal in 18 states and medical cannabis is legal in 37 states. Over the course of the decade, we have seen a dramatic change with how fast these markets were growing and believe our readers should be aware of this trend.

Illinois and Michigan are two of the newest recreational cannabis markets in the US. In 2021, both states recorded more than $1 billion of cannabis sales and we consider this to be a milestone for the sector.

When compared to states like Colorado or Nevada (where recreational cannabis is also legal), Illinois and Michigan reached the $1 billion sales level much faster. The amount of time for states to reach this milestone has significantly declined and we consider this to be a bullish indicator for the US industry.

As additional states legalize recreational cannabis, we expect states to reach the $1 billion sales milestone much faster. If you look at a market like Florida where only medical cannabis is legal, the state will most likely become a $1 billion market prior to the legalization of recreational cannabis.

When New Jersey and New York start to sell recreational cannabis, we expect the markets to grow faster than Illinois and Michigan. We believe the US cannabis industry has visible growth catalysts and will monitor how the industry evolves this year.

Some of the markets that we are the most excited about include: Arizona, Florida, Massachusetts, Ohio, New Jersey, New York, and Pennsylvania.

If you are interested in learning more about the US cannabis market, please send an email to support@technical420.com with the subject “Who is Capitalizing on the US” to be added to our distribution list.

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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.