U.S. legal cannabis sales grew 40% in 2021 - BofA
Zenkyphoto/iStock via Getty Images
- Legal sales of cannabis in the U.S. grew 40% in 2021 to $25B, according to research from BofA Securities.
- Global legal cannabis sales grew to $31B.
- However, analyst Lisa Lewandowski expects consumer packaged good companies to remain on the sidelines until federal legalization or de-scheduling becomes clearer, as well as cannabis multi-state operators gaining access to the U.S. banking system.
- She notes that Delaware, Oklahoma, Maryland, Pennsylvania, Ohio, and Rhode Island as the states most likely to pass marijuana legalization this year, based on media reports.
- Lewandowski added that a November 2021 Gallup poll found that 68% of Americans support cannabis legalization, an increase of six percentage points from 2016.tat\
- Multi-state operators (MSOs): Trulieve (OTCQX:TCNNF -2.0%), Cresco Labs (OTCQX:CRLBF +1.3%), Green Thumb Industries (OTCQX:GTBIF -3.6%), Curaleaf (OTCPK:CURLF -1.6%), Verano Holdings (OTCQX:VRNOF -6.1%), Acreage Holdings (OTCQX:ACRHF +0.7%), and Jushi Holdings (OTCQX:JUSHF -1.3%).
- Find out the prospects for passage of the SAFE Banking Act in Congress this year.
Recommended For You
Comments (101)
@TechAndCannaInvestor Google does.
@Retired One do you have a source for Schumer reintroducing his bill in January or February or are you just guessing on this? I have not heard of this.
@Retired One makes a lot of sense. I never believe Schumer and his timelines especially considering the BBB plan is taking so long. I think you have a good plan and shares are very cheap now. I don’t think Verano would sell unless they were aquired for much more than 40% or merge with another US MSO. I like them, Cresco, Green Thumb, AYR, and Columbia Care.
@ddca48 Fair enough and thank you :-)Awesome comment :-)Please remember the psilocybin for alcoholics, too, please :-) For PTSD Vets and PTSD non-vets :-) Replacements: yes, we've got wonderful botanical medicines inclusive of medicinal THC cannabis and medicinal hemp for what ails the millions and billions of us who put too many chemicals into our bodies :-)Safety, Quality, Ethos :-)International, Equitable, Inclusive, Regenerative, Restorative :-)Cannabis is what we do with it :-)
I wouldn't dismiss Cresco Labs just yet. I have been in manufacturing for 40 years with different companies. Sometimes it is better to farm out processes and sometimes not. An example would be injection molding. We used to make our own parts for our assemblies. By farming out these parts we replaced the area with manufacturing that earned more per sq ft than the molding operation did.
@Danjones1878 Cresco is a big wholesaler. Other cos. Are buying from them. Even the large msos sell the Mindy's line of gummies.
People talk about bag holding. Maybe so on the short term. But if you are smart, you know not to put all your beans in one basket. I’m accumulating slowly in all of the above. Eventually federal legalization will happen and these companies are going to all pop 400%+ on hype (and uplisting). The market has a herd mentality.While the companies may only get back to their former highs (pun not intended), if you buy in the dark times your cost average will be at a major price advantage. It doesn’t take a genius to figure this out. Only patience. Quit trying to time the market.
It might not be the number that is reflective of growth but the "value" of the flower/products sold :-)Most legal jurisdictions like FL, MA, IL and some others have what appear to beunsustainable, exorbitant pricingthat patients and consumer-patients are turning away from andinstead combining low-priced(for example, smokable medicinal hemp flower that is like famous medicinal THC flowers at about 1/10 the price: www.bostonhempire.com/...aretehemp.com/...and more likely soon because this is ONE PART of the market which can be scale)[I don't work for any company and I don't get a commission]medicinal hemp;sufficient medicinal THC - kief, bubble hash, or flower or other - to "extract" the medicinal value from the polyculture of flowers on the medicinal hemp market;perhaps isolates like Delta 8, Delta 10, THC-O, HHC (these are sprayed or infused on to the medicinal hemp flowers);Home grow;local or distant OG growers from the "informal" market;NOT just obtaining inputs from the medicinal THC monoculture exclusively = perhaps polyculture will beat monoculture gradually and over time becausethis is a polycultural medicinal plant andtrying to force market or force sell it as its BOOTLEG version(based on the false conclusion that it can be sold like booze and/or tobacco)might not be what makes patients Well = we need a polyculture of inputs :-)If investors take pricing from ALL markets and convert them to OR market pricesthen we might have an actual view of the "value" of the growthas opposed to just the volume of the growth :-)In other words, 2021 growth converted to OR market numbers is perhapsa clearer and truer reflection of the actual value of the products; the exorbitant pricing gives a distorted and inflated and perhaps false view of growth thatmight fool some investors into thinking the Wellness market(s) is growing more than it might actually be :-( The "Informal" market appears to be continuing and also appears to be improving itssafety and quality byconverting to "live soil" "Chemical free" Sun Grown for better terpenes andLOWER PRODUCTION COSTS :-)Most of corporate cannabis inexplicably is stubbornly refusing not to pivot perhaps because they already invested huge amounts of money in their hydro infrastructure mistakes and simply want to string things along until they "sell out" = corporate cannabis doesn't really care about what it does and it shows :-( Wonder if LIsa Lewandowski titrates cannabis,is a cannabis patient,or even talks to cannabis patients orhas family members or friends who are cannabis patients,otherwisewithout those direct connections to the Wellness industryshe appears to be another commodity metrics jockey who analyzes numbers butdoesn't know the products and how we titrate them:she doesn't know what patients want/need and therefore is making seemingly blind predictions for what might happen in the future :-( Still amazing that corporate cannabis and corporate cannabis analysts like this are NOT simply talking to patients to determine what we need and what we can budget :-(Some OG growers appear to be listening and some are not :-)Some CRAFT growers appear to be listening and some are not :-)Quite a lot of medicinal hemp growers appear to be listening and a few are not :-)As patients we are going to purchase from the folks who appear to be listening and growing what we need and what we can afford andwe are becoming friends andhelp those people to by finding our voices gradually to explain what we hope to get, participating in their CSAs, and buying consistently from them andgiving them feedback about how tomake their offerings even better for a wider variety of patients :-)Many patients will probably gravitate to the people who listen becausewe can see throughthe glitzy packaging,the pointless idea that celebrities can tell us what medicine to buy,the hype about trendy flowers,the corporate shirts and decorations at some dispensaries,and the notion that people in business who do NOT titrate cannabis canknow enough about it to be accurately responsive to patients' needs :-)Patients see through marketing because it is money being wasted on things that are NOT important to us;when the "hype" train grinds to a halt in the near future or some time in the future, the companies/farms/growers which reached out and elicited responses from the voices of patients might be the companies that haveNOT markets but communities of patients to sell to :-) It is not difficult please :-)Safety, Quality, Ethos :-)International, Equitable, Inclusive, Regenerative, Restorative :-)The possible irony which might be comical if it weren't actually serious is thatIF Wellness companies lobbied for HOME CULTIVATION andgot it for patients in a legal jurisdiction thenyes we would grow a lot of cannabis butwe would also buy gear from the companies which supported HOME CULTIVATION becausethey showed us that they understand we like to grow the plantand we derive more medicinal benefits from the plantwhen we grow it microbially in "live soil" and "Chemical free" and Sun Grown :-)One of the flaws of corporate cannabis which persists is thatthey are trying to defeat the "informal" marketwhich includes our caregivers(who we value greatly and are our friends),local and distant OG growers (who teach us through podcasts and who we like for supporting Learning and Sharing the Learning),and local and distant CRAFT growers (who teach and inspire us to develop our medicinal relationships with the plant)and trying to put these people out of business and hurting them is something as patients we do not like or appreciate :-(That growth and any projected growth might start to dissolve or wane if corporate cannabis continuesto bully andtry to willfully hurt local growers and local farmers and local patients and local communities :-(It is already happening in many legal jurisdictions, patients and consumer-patients have been looking at corporate cannabis for a few years and it doesn't really seem to be that friendly becausethey won't see patients as important enough to even listen to and ask what we need :-(Patients will interact with those who understand what medicinal needs we have :-)
@Danjones1878 Fair enough and thank you :-)Corporate cannabis appears that they might be making some crucial errors with examples of these errors :-)
@Spiritus fermenti there is probably no source for that. I think he is just guestimatting. It will be a large increase. Definitely not 5x immediately but overtime recreational will dominate medical sales.
US cannabis is one of the fastest growing industries in the world.On top of that several states are still going to legalize in the coming years.
The valuations of these stock is an absolute joke. GTI and Trulieve have some of the cheapest yet profitable high growth in the world.GTI and Trulieve will have billions in annual sales in a few years, yet their market caps are under $5B
The valuations of these stock is an absolute joke. GTI and Trulieve have some of the cheapest yet profitable high growth in the world.GTI and Trulieve will have billions in annual sales in a few years, yet their market caps are under $5B
@Spiritus fermenti
wholesaling is not a good biz IMO. That's why I don't like cresco. Eventually all the MSOs will scale their production and not need wholesale. That won't hurt trulieve or GTI. The cost to grow dope is very low at scale and they make great profits on it.
wholesaling is not a good biz IMO. That's why I don't like cresco. Eventually all the MSOs will scale their production and not need wholesale. That won't hurt trulieve or GTI. The cost to grow dope is very low at scale and they make great profits on it.
@Maverick 2021 ...until further notice without doubt.
