Keeping pace with the ever changing state and federal regulations of being a cannabis employer is complicated. A misstep can be financially devastating.
The U.S. hit record high cannabis sales last year.
It comes as no surprise, as more states continue to modify legislation and legalize the drug, we will continue to see more Americans consuming more cannabis than ever before.
The pandemic hurt many industries, but the cannabis industry was not one that suffered. The record $17.5 billion the U.S. saw in 2020 was a 46% increase from the year prior.
Mature adult-use markets, like Colorado and Oregon, saw most of the growth. Colorado sales saw a 26% increase (reaching $2.2 billion), and Oregon sales saw a 29% increase (reach $1.1 billion). Illinois, which introduced recreational marijuana just last year, is now doing over $1 billion in sales. Illinois actually saw the largest dollar gain in 2020, rising by $784 million.
There are three factors that contributed to the cannabis industry’s growth in 2020:
1. The Covid-19 pandemic
2. More adults became customers in mature markets like Colorado, Oregon, and California
3. An increasing number of states jumped on the legalization bandwagon, including Illinois and Arizona
Cannabis delivery companies also did really well during the pandemic. The number of Americans using cannabis delivery services increased by 25%. Many cannabis companies benefited from the surge of orders at the start of the pandemic, as expected. That surge, however, never really ended even as the byproducts of the pandemic became the new norm.
Though the legal cannabis market is making giant waves and bringing in billions of dollars, the majority of the industry is still in the black market. It is estimated that illicit cannabis sales are exceeding $100 billion every single year. It is predicted that the legal U.S. cannabis market will reach $41 billion in annual sales by 2026.
Business and job opportunities will continue to flourish in the legal cannabis market. AdaptiveHR is available to be part of that journey and help your current, or potential, business and employee needs. Fill out the form below to keep current with cannabis business legislation changes or call us directly if you need additional support.