For those that are invested in our industry, those that work in our industry, those that follow the markets and economy, or those that are simply “numbers geeks”, this will come as somewhat of a shock – but last year’s cannabis numbers were WAY off!
Excitement was high. Expectations were high. And forecasts of unbelievable growth and value were almost euphoric. Remember 2019 being labeled the Year of CBD and overall Cannabis revenues would ride the wave to a projected astounding $12 Billion? Or, crazy forecasts predicting the cannabis industry to reach $75 Billion by 2030? And even some analysts thought Cannabis revenue could reach $50 Billion by 2025. And for those of us in the THC BEVERAGE sector, seeing those revenue projections doubling in 5 years made us giddy. Well, we were all wrong!
THE NUMBERS WERE MUCH HIGHER THAN EXPECTED!!
- 2019 cannabis revenue EXCEEDED $15 billion!
- New projections show cannabis revenue approaching $125 billion by 2023!
- Cannabis beverages, previously under 3%, doubled and now account for over 6% of revenue.
- The THC Beverage sector increased revenues by over 70%!
And how did the Pandemic affect our industry?
Thus far in 2020 overall revenue is up 40%! And By example, during the Covid-19 crisis, Nevada’s Cannabis Revenues increased a whopping 75%! Mexico is poised to enter the Cannabis Market Place with an additional $100 billion in revenue over the next 5 years!
As more states become fully legal these numbers will most certainly continue to grow. Employment opportunities abound. (In 2019 the Cannabis industry employed over 200,000. This number is expected to grow to over 1,000,000 by 2025. And consolidations, “roll-up” strategies, and legislative initiatives bode well for those currently entrenched in the industry.
So, as we continue to work hard and establish domestic cohesiveness and international markets, I can’t help but think of that iconic scene in “Godfather II” where Hyman Roth says to Michael Corleone:
“We`re Bigger Than U.S. Steel!”
Enjoy the week. Be Safe. Stay Healthy.
Until that time,
Your friends at HighBridge Premium Cannabis