PORTLAND, Ore., Dec. 1, 2022 /PRNewswire/ — Whitney Economics, a global leader in cannabis and hemp business consulting, data, and economic research, is proud to announce the release of its 2022 U.S. Cannabis Supply Report. The firm has calculated the total cultivated output of cannabis in the United States in 2022 to be in excess of 48.8 million pounds. This includes both legal and illicit cannabis supply for all delivery methods, including flower, edibles, concentrates, etc.
Supply, Demand, Consumption and Cultivation Capacity
This 2022 Whitney Economics U.S. Cannabis Supply Report is an assessment of the U.S. cannabis supply at the national and state levels. This foundational report is intended to inform stakeholders in the cannabis industry: investors, regulators, business operators and policy makers. There is no other source of this data available.
“Having developed both supply and demand models examining the legal and illicit markets, Whitney Economics has the tools available to assess markets from an operations, investment and regulatory perspective,” says Beau Whitney, chief economist at Whitney Economics. In the report, Whitney has calculated the total legal cultivation capacity in the country, noting that it is currently greater than the entire U.S. demand, if utilized at 100%.
Current legal sales of cannabis are projected to be $29.3 billion by 2022, and are forecasted to be $81.6 billion by 2030. There will be more legal supply than illicit cannabis supply in the U.S. beginning in 2026. The data in this report can assist investors, operators, regulators and other stakeholders in the U.S. cannabis industry in determining which markets are oversaturated by supply, a market condition that reduces margins and introduces risks to investors and operators.
Market assessments based on data from this report provide a deeper look at the opportunities and risks at the state level.
“Readers of the supply report will have invested in more accurate and operational data that will pay dividends for years through risk assessment, loss avoidance and operational excellence,” Whitney added. “With this report, operators and investors now are empowered to make informed, data driven decisions and can develop detailed market entry strategies worth millions of dollars.” Taking a proactive approach to loss avoidance is prudent, because the cannabis industry has proven to be dynamic and challenging to profitably navigate.
- Investors will benefit from this data by determining which markets are saturated (leading to declining prices and falling margins), versus which markets are constrained, which tend to feature higher prices and greater profits.
- Investors will benefit from this data by developing market entry strategies and vetting new investment opportunities.
- Regulators will benefit from this data by establishing predictable and flexible licensing strategies.
- Regulators will benefit from this data by developing tools for social equity allocations and can, in turn, work with legislators to develop effective and meaningful programs to help support minority business owners.
- Operators will benefit from this data by anticipating changes in the market dynamics and developing operations strategies and pricing models.
- Operators will benefit from this data by assessing their share of market and value of their firm when consolidation inevitably occurs
Whitney Economics would like to thank the many operators, regulators, policy makers and stakeholders who have helped contribute to this foundational report. This was a great team effort from a wide variety of perspectives.
More details can be found on the Whitney Economics website.
If you would like to speak with Whitney Economics or schedule a media interview, contact Beau Whitney directly at (503) 724.3084 or firstname.lastname@example.org
Whitney Economics is a global leader in cannabis and hemp business consulting, data, and economic research, supporting hemp and cannabis operators, investors & regulators. With decades of experience, ongoing data creation and aggregation processes, and boots-on-the-ground resources around the world, Whitney Economics creates value through detailed insights, granular analysis & thoughtful projections.
SOURCE Whitney Economics