“All recreational cannabis product segments are estimated to grow at least 113% through 2023, some segments as much as 225%.”
In their recent report, Brightfield Group, a leading market intelligence firm for the legal CBD and cannabis industries, uncovered a number of growing trends across the United States for cannabis. With more states moving to legalize recreational cannabis via ballot instead of referendum, increased momentum is expected for legalization in the coming years. Brightfield estimates that the U.S. cannabis in the recreational market will expand by 33% in 2019 alone.
“Historically, the industry has been focused on California and the West Coast. While California has been fumbling with a regulatory nightmare and growth rates slow to low single digits in existing recreational markets, many of the more populous states along the East Coast and in the Midwest are scaling dramatically in size and offer much greater long-term potential as MSOs become more common and legal and entry barriers begin to soften,” Brightfield Managing Director, Bethany Gomez, explains. More and more MSOs are bringing in executives from the CPG world, following an established trend seen in Canada to standardize processes and improve efficiencies.
Key highlights from the report:
– All recreational cannabis product segments are estimated to grow at least 113% through 2023, some segments as much as 225%.
– While markets in Oregon and Arizona mature, states like Florida, Massachusetts and North Dakota are among the fastest growing.
– As the hemp-derived CBD market explodes, and showcases scalable business opportunities, many cannabis companies have pushed into the CBD space as a precursor to THC legalization.
– License caps and numerous acquisitions have dramatically increased the value of larger cannabis businesses, pushing out smaller firms.
About Brightfield: Brightfield Group is a predictive market intelligence firm focused on the legal CBD and Cannabis industries. Their analytic solutions leverage data from millions of sources, enabling customers to get the most holistic view possible while drilling down into the fine details. They provide comprehensive, up-to-date, and actionable market and consumer insights that transform the best of academia, data science and research into long-term business growth.