The economic impact of the US cannabis industry could reach 130 billion $ by 2024

While the size of the American cannabis industry is estimated to reach 50 billion $ by 2026, 130 billion $ per annum by 2024, according to the latest MJBizDaily report, 45 billion $ in 2019.

The economic impact of cannabis takes into account direct sales, to which are added all the spin-offs for economic players such as cities, states or the country. MJBizDaily uses a multiplier of 3.5 to calculate the overall contribution of the cannabis industry, estimating that 1$ spent on cannabis generates an additional 2.50$ in the economy, particularly at the local level.

The expected growth of the American cannabis industry is based in particular on next American states to legalize cannabis and on the transition from the illicit to the legal market for consumers in states where cannabis is already legal. The cannabis industry generates a large number of new jobs, It offers business opportunities and creates significant ripple effects across the country, while being little affected by crises such as the coronavirus pandemic.

MJBizDaily gives various examples of how cannabis businesses indirectly affect the economy:

• Tourism, especially for foreigners who come to take advantage of the legal framework for consuming cannabis
• Real estate activity boosted by the creation of cultivation sites or dispensaries, often in previously vacant industrial or commercial spaces.
• Taxes, generated by cannabis businesses that collectively pay hundreds of millions of dollars in state and local taxes, and fund projects like rural roads and hospitals as well as government programs like education

A previous report from the Nielsen Institute, estimated that legal cannabis sales in the US could reach nearly $41 billion by 2025, aligned with MjBizDaily's projection of the overall impact of the cannabis industry in the US.