Category: legal cannabis

Spotlight on Colorado’s Cannabis Market



History of US Cannabis Prohibition Part 1 of 5
The World's largest cannabis markets Part 2 of 5
A guide to cannabis in the US Part 3 of 5
Spotlight on Colorado's Cannabis Market 4 of 5
Legal vs. Illegal: an overview of the cannabis market Part 5 of 5

The following content is sponsored by Tenacious Labs.

Colorado Cannabis Spotlight

Spotlight on Colorado’s Cannabis Market

In 2014, Colorado made history by being the first state to have the sale of legal recreational cannabis take place. Once considered unchartered territory, the state has since established itself as a mature and prospering legal market.

And as various governments explore the possibilities around cannabis legalization, policymakers likely consider Colorado’s journey as one to potentially emulate in order to reach some of the same longer-term outcomes that have materialized.

The following sponsored graphic from Tenacious Labs provides a spotlight analysis of the Colorado cannabis market, and looks at defining trends and key developments that have occurred during the last eight years.

Zooming in on Sales and Tax Revenue

From a fiscal perspective, cannabis legalization has been a hit for the state of Colorado. Since it started in 2014, Colorado has generated over $2 billion in tax and fee revenue from the legal cannabis space.

Here’s a look at the growing tax revenues, which started from a modest $46 million and have surged nearly 10x.

YearTax Revenue Generated ($M)
2014$46.1
2015$104.7
2016$164.1
2017$220.6
2018$243.4
2019$279.1
2020$362.0
2021$396.1

Moreover, cannabis sales are still increasing. The year 2021 was a record year which generated $2.2 billion in revenue.

Given the rise in debts most governments have incurred in response to the COVID-19 pandemic, new sources of revenue and taxation, and rising ones at that, are attractive and may act (Read more...)

Catching the Growth of the Cannabis Industry



The following content is sponsored by eToro

Cannabis future infographic

Catching the Growth of the Cannabis Industry

The global stance on cannabis is changing rapidly.

With a wave of medical and recreational legalization occurring, there are now 70 countries with some form of legalization. As billions of investment dollars pour in, the cannabis industry finds itself entering a brand new chapter.

This infographic from eToro provides key information for investors on how the global cannabis market is making significant strides forward.

The World’s Legal Cannabis Markets

In just a few short years since legalization momentum kicked off, societal views on cannabis have changed tremendously. Examples of this include:

  • Dispensaries being deemed essential businesses during the pandemic.
  • Uber announcing its intention to incorporate cannabis deliveries.
  • Malta becoming the first country to legalize cannabis in Europe for recreational use.

This shifting dynamic is part of why the global cannabis industry now generates over $20 billion in legal recreational sales on an annual basis.

The title for the world’s largest cannabis market belongs to the U.S.—generating more than $16 billion in sales in 2020. However, their regulatory landscape is also one of the trickiest to navigate, as federal legalization has yet to occur despite over 30 states having legalized cannabis in some form.

While this unique situation leaves a lot of potential money off the table, it also provides lots of potential upside for the industry should legalization trends persist. In 2022, Mississippi, Oklahoma, and Delaware are considered likely to legalize, which would take the small (Read more...)

Defining the New Cannabis Consumer



Every Cannabis Product In One Graphic Part 1 of 5
Cannabis and alcohol a side by side comparison Part 2 of 5
The new cannabis consumer Part 3 of 5
Exploring the untapped potential of CBD 4 of 5
5 signs of matuurity from the cannabis industry Part 5 of 5

The following content is sponsored by Tenacious Labs

cannabis consumer infographic

Defining The New Cannabis Consumer

The cannabis industry is transforming, and so too are its consumers.

As they edge further into the mainstream, cannabis companies will need to fight for the consumer’s dollar—not just against other cannabis brands, but also against a number of other industries in the discretionary spending sphere.

This graphic from Tenacious Labs looks at key data that will help us define the new cannabis consumer and explores how cannabis industry sales compare to adjacent discretionary spending industries.

Competing for the Cannabis Consumer Dollar

Roughly 12% of Americans consume cannabis which translates roughly into $60 billion in sales. While these figures are mostly made up of the illicit market, it’s forecasted that the legal industry’s footprint will come to represent the majority of the market.

Let’s take a look at how some of the most popular discretionary spending industries compare to cannabis.

IndustryU.S. Industry Sales 2020/2021 ($B)
Cigarettes$77.0B
Recreational Cannabis including Illicit$60.0B
Craft Beer$27.8B
Recreational and Medical Cannabis$20.0B
National Football League$12.0B
Movie Theatre Tickets$12.0B
Frozen Pizza$4.4B
Hard Seltzer$4.1B
Paid Music Streaming Services$2.5B
Tequila$2.3B

The recreational and medical cannabis industry sits just below the craft beer space, which generates $27 billion a year.

However, with cannabis consumption rates trending upwards and alcohol consumption falling, it’s likely the cannabis industry will experience a larger share within the overall consumer discretionary spending sector over time.

The New Cannabis Consumer’s Changing Preferences

(Read more...)