A new report forecasts that the U.S. cannabis industry will require $65.6 to $130.7 billion in growth capital over the next decade to support new and existing businesses.
According to Whitney Economics, with support from CTrust and Green Check, the market could generate $1 to $2.4 billion in interest revenue for lenders during this period.
Retail cannabis sales are projected to grow from $28.8 billion in 2023 to $87 billion by 2035, which may lead to an additional 25,000 to 30,000 licenses issued on top of the current 40,000.
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Beau Whitney, founder of Whitney Economics, noted that funding for this growth can’t rely solely on personal networks. He emphasized the need for financial institutions to understand the risks and rewards of lending to the cannabis industry.
At the recent Benzinga Cannabis Capital Conference, Whitney mentioned that projected retail sales for 2024 could hit $32 billion, with potential doubling in the following years.
The growth of the cannabis sector is dependent on legal consumer engagement and licensing across states.
The report identified California, Florida, Illinois, New York, Pennsylvania, and Texas as prime states for funding opportunities over the next decade.
Dotan Y. Melech, CEO of CTrust, believes the report will foster better lending relationships between financial institutions and the cannabis industry.
Kevin Hart, CEO of Green Check Verified, echoed this sentiment, highlighting the importance of connected data and risk management in building a supportive financial ecosystem for cannabis lending.
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