United States: legal cannabis sales surpass Starbucks in 2021

The expansion of the legal cannabis industry is often compared to that of well-known chains such as McDonald’s or Starbucks. A report by the analytics firm ArcView In fact, in 2017, it estimated that legal and illegal cannabis sales exceeded those of McDonald's and Starbucks combined.

It now appears that the legal cannabis sales in the United States exceeded the coffee giant's North American sales by at least one-third, according to the MJBiz Factbook 2022.

And this is despite the fact that coffee can be sold in all 50 U.S. states, whereas only 39 states and the District of Columbia have legalized at least one instance of cannabis use.

Growth in the Cannabis Industry

The cannabis industry experienced faster growth than Starbucks between 2020 and 2021. While Starbucks’ annual revenue in North America increased by 25% during fiscal year 2021, the cannabis industry saw its sales climb by 30% over the same period to $27 billion.

The report states: «While flower continues to dominate legal sales across the country, non-combustible products may offer an innovative and potentially more socially acceptable way for consumers to enjoy one of their favorite plants. For potential consumers considering trying cannabis, non-smokable products present a lower barrier to entry. These products are more closely associated with items that people often already enjoy.»

The report also compares cannabis revenue to that of other major revenue-generating sectors, such as cigarettes, over-the-counter medications, opioids, and salty snacks. While cigarettes and over-the-counter medications—with $52.8 billion and $36.5 billion in revenue, respectively—exceeded legal cannabis sales in 2021, their growth rates were lower. Nevertheless, 2021 was the first year in 20 years that cigarette sales increased in the United States.

Cannabis sales will continue to outpace those of Starbucks in the coming years, largely due to a huge, still untapped market. More than 20% of the country’s total population lives in the 11 U.S. states where cannabis is still not legal. Legalization efforts in these states would be a boon that Starbucks would struggle to keep up with.

So, who will be the the next "Starbucks of weed" ?