The U.S. cannabis industry is poised for massive expansion over the next decade, which will require big money – as $130.7 billion – to fund it, according to a new industry report. But absent federal banking legislation and greater institutional involvement, the odds a sustainable source of capital panning out are slim.
The study, conducted by research firm Whitney Economics with support from cannabis credit agency CTrust and fintech firm Green Check, projects that the cannabis industry could add 25,000 to 30,000 new business licenses to the existing 40,000 licenses over the next 12 years.
“There are tremendous opportunities for the banking industry in the United States cannabis sector,” said Beau Whitney, founder and chief economist at Whitney Economics. “These opportunities are matched by significant risks. All risks can be mitigated, at least to some extent, by expertise.”
Currently, the U.S. cannabis industry generates an estimated $28.8 billion in retail sales, a figure that is projected to grow to $87 billion by 2035, according to the report. The firms said that California, Florida, Illinois, New York, Pennsylvania and Texas “are among the top states for financial funding opportunities over the next decade.”
For what it’s worth, Ohio saw over $87 million in sales during the first 8-week stretch following the launch of recreational cannabis on August 6.
Read the full story at Green Market Report.
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U.S. cannabis industry poised for massive expansion — and financial institutions could profit from it – Crain's Cleveland Business
