Projected Growth of the U.S. Cannabis Market

Projected Growth of the U.S. Cannabis Market

Dear Stakeholders,

We are pleased to provide you with the latest insights into the projected growth of the U.S. cannabis market, as of April 2023. Our analysis, derived from the esteemed MJBiz Factbook, indicates significant advancements and opportunities within the industry.

Projected U.S. Cannabis Market Size

By the end of 2023, we anticipate combined medical and recreational cannabis sales in the United States to reach an impressive $33.6 billion. This projection is notably influenced by the expansion of new adult-use markets, reflecting a dynamic and evolving landscape within the cannabis industry.

Retail Cannabis Sales Projections

Looking ahead, the MJBiz Factbook forecasts a substantial growth trajectory, with retail cannabis sales expected to soar to approximately $53.5 billion by 2027. This promising outlook underscores the increasing acceptance and demand for cannabis-related products across both medical and recreational segments.

U.S. Medical Cannabis Market Overview

The medical cannabis market has demonstrated robust growth in 2022, with nearly all states now regulating medical marijuana markets. The outlook remains positive, particularly in states like Louisiana and Minnesota, where new regulations aim to enhance program participation. However, challenges persist in states with limited programs, such as Georgia and Iowa, where accessibility remains a key concern.

U.S. Adult-Use Cannabis Market Trends

The adult-use segment of the U.S. marijuana industry is poised for even more substantial growth, particularly in states with significant market potential, such as New York. The ongoing transition from medical to recreational markets is accelerating, exemplified by historic developments in South Dakota in 2020. Despite political challenges, the acceptance and adoption of the regulated industry continue to evolve, as demonstrated by the launch of Arizona’s recreational market.

Projected Cannabis Retail Sales: 2021-2028

The following table outlines the projected U.S. sales of cannabis from 2022 to 2028, providing a comprehensive overview of the anticipated growth in both medical and recreational sectors:

Year      Medical      Recreational      Combined

2022      $10.7         $19.3                $30

2023      $11.1         $22.5                $33.6

2024      $11.6         $26.9                $38.4

2025      $12.3         $32                  $44.3

2026      $12.9         $36.8                $49.7

2027      $13.5         $40                  $53.5

2028      $14.1         $42.8                $56.9

In conclusion, Category V Biotech, Inc. remains attentive to the dynamic trends and opportunities within the burgeoning U.S. cannabis market. As we continue to witness the industry’s evolution, we are strategically positioned to contribute to the advancement of biotechnological solutions that may further shape this transformative landscape.

Sincerely,

Michael Feldenkrais, CEO Category V Biotech, Inc.

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