MJBiz Factbook: Marijuana industry will add $112.4 billion to US economy in 2024

The total U.S. economic impact generated by regulated marijuana sales could top $112.4 billion in 2024, about 12% more than last year, according to analysis from the newly released MJBiz Factbook.

While the industry has experienced sales declines – especially in mature western markets – the expansion of new recreational and medical marijuana facilities in states such as Maryland, Missouri and New York continue to foster growth.

With more new cannabis markets on the horizon, the industry will add upward of $200 billion in additional spending to the U.S. economy by 2030.

The projections do not take into account any action from the U.S. government such as federal rescheduling or legalization, though each could increase revenue and economic impact.

To measure the industry’s economic impact, MJBizDaily analyzed similar industries and applied a standard multiplier on projected recreational and medical marijuana sales. 

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The economic multiplier paints a picture of the cannabis industry's impact on the broader economy.

This means that for every $1 that consumers and patients spend at adult-use stores and MMJ dispensaries, an additional $2.50 will be injected into the economy - much of it at the local level.

The economic impact of the marijuana industry is not the same as supply-chain revenue, which often is used to estimate the “total size” of an industry.

The total amount of U.S. adult-use and medical cannabis sales, according to the MJBiz Factbook, is expected to reach $32.1 billion in 2024 and $58 billion by 2030.

The projections are a best estimate given the unique nature of the rapidly expanding marijuana industry, which is governed by a patchwork of state regulations but remains illegal under federal law.

Marijuana businesses encompass a range of agricultural, manufacturing and retail operators as well as non-plant-touching ancillary companies such as lighting suppliers and accounting firms.

Some markets also include cannabis events and hospitality businesses, which tend to have even higher economic impact than other industries.

The marijuana industry has a large impact on the broader economy, both locally and across the nation.

That impact comes directly from the day-to-day needs of workers in the cannabis industry, including spending on life’s necessities such as housing, transportation, entertainment and more.

Taxes collected from cannabis businesses and consumers play a role, too.

Marijuana businesses, consumers and patients pay hundreds of millions of dollars in state and local taxes that are used to fund government activities at those levels, including schools and roads.

Real estate also receives a boost from new retail, manufacturing and agricultural businesses moving into an area, or established companies expanding, increasing broader demand for commercial properties.

In many markets, cannabis companies are restricted in where they can operate, but they often bring new business activity to areas that previously were blighted or couldn’t attract such enterprises.

The 2024 MJBiz Factbook, available now, examines in detail the impacts from new markets and ongoing legalization across the United States.

The latest Factbook includes almost 50 charts and a state-by-state overview of regulations, taxes, market conditions and what to watch.

More information about the 2024 MJBiz Factbook and how to subscribe is available here.

Join MJBiz data partners for a live discussion about the latest cannabis market trends on May 14.

Andrew Long can be reached at andrew.long@mjbizdaily.com.