Efforts to legalize recreational cannabis continued their slow but steady progress across the U.S. in 2022 with approvals in three more states. Maryland and Missouri adopted legalization through statewide ballots, and legislation was approved and signed in Rhode Island. Currently, recreational cannabis use is legal in 21 states and the District of Columbia. Observers hold out hope that major markets like Minnesota, North Carolina and Ohio will join the mix in 2023 given that federal legalization seems further out of reach in the 118th Congress, in spite of evidence that this is a “purple” issue.

But this is just the backdrop for a bigger story as flower prices have plummeted. An extensive illicit market is one factor. Within the $72 billion U.S. cannabis industry, an estimated $47 billion takes place on the gray or black market (including cross-border sales and diverted in-state medical marijuana),¹ putting licensed and tax-paying growers and retailers at a major price disadvantage.

 

This edition covers:

+ Market Outlook

+ Major Claims in the Sector

+ Guidance

 

1https://www.forbes.com/sites/willyakowicz/2022/08/19/why-the-legal-cannabis-industry-needs-the-black-market/?sh=7f98e68c78d5