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States all throughout the nation are looking for new, high-growth industries to get involved in. It appears that cannabis/hemp could be one of those industries. cannabis/hemp sales reached $26.5 billion in 2020 (when only predicted to reach $26 billion) and are projected to reach $32 billion or more in 2022. Analysts estimate the value of the cannabis/hemp market each year. And each year, that number is higher than anticipated. Let’s take a look at all the top trends and stats you need to know about cannabis/hemp in 2022 to keep up with this ever-changing, exponentially growing industry.
US Cannabis/Hemp Industry as a Whole
The cannabis/hemp industry is booming.
According to New Frontier Data’s calculations, the legal cannabis/hemp market will be worth more than $57 billion by 2030, based on a compound annual growth rate (CAGR) of 11% between 2020 and 2030.
Wall Street anticipates that the industry’s value will increase significantly by 2030 and will reach $100 billion. That’s undoubtedly feasible given the rising consumer demand and the new legal marketplaces that emerge annually.
Cannabis/Hemp Industry in 2021
While the cannabis/hemp industry as a whole is currently flourishing, some states, particularly more developed markets, are starting to see sales decline year over year.
Since July 2021, Colorado’s sales have been decreasing. In February 2022, they were approximately 4% lower than in January and 13% lower than in the same month in the previous year. Despite this drop, they are still breaking records with $2.22 billion in cannabis/hemp sales in 2021.
While this trend is more common in older markets, we are still seeing it in some newer ones. When compared to December 2021, sales in Arizona fell by about 10% in January 2022. The medical industry in Hawaii has also had poor annual growth, falling from 110% growth in 2019 to 68% growth in 2020 to barely 12% growth in 2021.
Although growth may be slightly slowing, this doesn’t indicate sales aren’t remaining steady; rather, it just shows that consumers are becoming accustomed to legalization and are buying in more consistent amounts.
Weedmaps reports that 57% of cannabis/hemp users think everyone should have access to job possibilities in the cannabis/hemp business and that everyone would profit from those equitable opportunities.
The majority of respondents indicated they want to support minority and women-owned cannabis/hemp companies and 37% said they want to visit LGBTQ+ owned cannabis/hemp businesses.
(For a list of cannabis/hemp-related initiatives offered, consult this guide to social equity programs for dispensaries.)
Cannabis/Hemp So Far in 2022
- Cannabis/Hemp is Gaining Popularity
The number of American people who claim to have tried cannabis/hemp is currently at 49%, which is the highest figure recorded to date according to Gallup. Only 40% of Americans claimed to have used cannabis/hemp at some time in their lives just 7 years ago.
The statistics revealed generational patterns as the cause of the increase, with 50% of Baby Boomers, 49% of Gen Xers, and 51% of Millennials reporting having used marijuana, compared to 19% of those born before 1945. (Based on statistics compiled from 2015 to 2021).
Additionally, according to Weedmaps’ 2021 survey of cannabis/hemp consumers, the pandemic has caused half of the respondents to start taking more cannabis/hemp since March 2020. In the first half of 2021, compared to the same period in 2020, online cannabis/hemp orders rose by 55%.
Except for Gen Z, who placed vapes as the top buy in 2020 and 2021, every generation’s top purchase in Eaze’s 2022 report was edibles. Interestingly, all generations ranked flower third in 2021, with Boomer’s rating lower than they did in 2020.
Given these two demographics prefer to buy edibles more frequently, the popularity of edibles will probably continue to grow as more young cannabis/hemp consumers reach the legal drinking age and as markets mature.
- Concentrate on Concentrates
While flower still commands a sizable share of the market, edibles and concentrates are becoming more and more well-liked as consumers gain more knowledge about cannabis/hemp and the marketplaces become more established.
Concentrates made up 2% more of the total in 2021 (from 22% to 24%).
- Women Entering and Overtaking Cannabis/Hemp Market Demographic
According to headset statistics, cannabis/hemp sales to both men and women have grown since 2020 with women experiencing the most growth. Headset examined data from early 2020 to late 2021 and discovered a 55% increase in sales to female clients. On the other hand, sales to male clients were up by 49%.
Additionally, their research reveals that while just around one-third of all cannabis/hemp sales belong to female consumers, their market share increased from 31.7% in 2020 to 32.6% in 2021.
Men continue to make up the majority of new customers despite the growing female market share, albeit only slightly. According to an Eaze analysis from 2022, of the new clients who consumed in 2021, 48% were women, and 52% were men.
In 2020 anything that aided consumers in receiving their products swiftly and safely – including online ordering, curbside pickup, and delivery – rose in popularity. Weedmaps indicated a further 60% increase in cannabis/hemp delivery in the first half of 2021, continuing the trend that began in 2020.
The ecommerce possibilities made possible by the pandemic are still appealing to cannabis/hemp consumers. According to the State of the cannabis/hemp Industry study from 2020, stores with order-ahead capabilities typically sold 22% more than those without.
What Does This Tell Us?
These statistics show us a few key things that will make or break cannabis/hemp businesses in 2022. The first is the legal cannabis/hemp market is rapidly growing, meaning there is plenty of space for new businesses to make their way up the ranks and for job opportunities to grow.
Statistically, it is in businesses’ best interests to diversify their employee demographics – and ethically, it’s a no-brainer. Additionally, it will be beneficial for cannabis/hemp businesses to look into catering to the growing female demographic.
Lastly, cannabis/hemp flower is not the be-all and end-all of the industry! Diversify your product list with edibles, concentrates, CBD products, tinctures, etc., in order to stay current and cast your net as wide as possible when attracting new customers.
We at Abundant Labs wish all those in the cannabis/hemp industry a most prosperous 2022! Be sure to view our website for the crème de la crème of cannabis/hemp products and natural product extraction services.