The production and benefits of cannabis in the United States will grow up to 23% per year until 2023
Data provided by the organization “Cannabis: United States” predict that legal production of marijuana and hemp in the United States will produce a 23% increase in profits until 2023. The study has been published by Freedonia Focus Reports.
Thanks to the so-called Farm Bill of 2018, created at the request of President Trump, and that qualified hemp as an agricultural product more for federal legal purposes, hemp is estimated to represent more than 90% of the profits in total cannabis production .
Another of the undisputed protagonists of this increase in production and benefits is the huge growth in demand for products containing cannabidiol (CBD). And, of course, the global agricultural war that hurts American farmers a lot. They see how each day they earn less by selling their products to the point of being working very hard on unviable agricultural projects with which they lose money.
Despite being one of the most controversial presidents of contemporary American history, Donald Trump created the Farm Bill in 2018 in anticipation of the economic problems of American farmers. Being his premise “America first” (America First) the basis of his government program, and being a seasoned businessman, Trump was aware of the crisis in the agricultural sector and anticipated the others with the Agricultural Law. Thanks to this law, many American farmers have put aside their traditional crops to fully launch the modern hemp revolution that is already known as “the green gold”.
Analysts estimate that the US demand for cannabis, in all its formats, will grow by 8.4% annually until 2023. It is also expected that hemp demand will experience significant growth in demand and sales throughout the country. However, this study estimates that legal marijuana remains the most important sector of total cannabis demand.
But all that glitters is not gold and sometimes the growth of supply has exceeded demand in some states, and this reality affects prices and the resulting demand in terms of value. It even affects the increase of the black market in some states.
We recommend that you read the articles published on cannabisground.com “Legal cannabis growers return to illegality” and “Increases the black cannabis market in the US since its legalization”. In these two articles we have studied in depth the problem of the excess supply of cannabis in some states and other problems of the sector.
This problem is particularly important in California, which is the main producer of marijuana in the country. It is estimated that only about 20% of local production is legally sold in the state. Therefore, cannabis sold through unlicensed operators and marijuana illegally grown by people at home and cannabis illegally imported into the United States and sold on the black market are left out of this report.
These data have been studied by the organization “Cannabis: United States”. The report has made an evaluation of production in kilos and demand in dollars until 2028.
The production report is fragmented based on marijuana and hemp. Likewise, the total demand is also segmented between legal marijuana and hemp.
To arrive at the estimates provided in this report, total production and demand between 2016 and 2018 have been taken into account. Based on this information a forecast has been made that goes from 2019 to 2023, with a projection of five years until 2028.
The calculations are made taking into account only the dry weight of cannabis flowers. Unfortunately, it is true that a portion of this total marijuana production is sold through the black market. However, these volumes are also part of the report although they are valued separately. Reports are available in The Freedonia Group.