A new report from Whitney Economics, supported by CTrus and Green Check, estimates that the U.S. cannabis industry will need between $65.6 billion and $130.7 billion for growth over the next decade. This funding will support new businesses and refinance existing ones.
The report suggests that financial institutions could earn $1 billion to $2.4 billion in interest by lending to cannabis businesses during this time.
U.S. cannabis retail sales are projected to rise from $28.8 billion in 2023 to $87 billion by 2035. To support this growth, the industry may require 25,000 to 30,000 new licenses, on top of the 40,000 currently issued.
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Beau Whitney, the report’s author, emphasized that financial support should extend beyond personal networks. He aims to educate financial institutions about the risks and opportunities in the cannabis market.
Whitney also shared insights at the Benzinga Cannabis Capital Conference in Chicago, forecasting retail sales to hit around $32 billion in 2024, potentially doubling in the following years.
The report identifies California, Florida, Illinois, New York, Pennsylvania, and Texas as prime states for funding opportunities in the next decade.
Dotan Y. Melech, CEO of CTrust, believes the report will foster better lending partnerships between financial institutions and the cannabis sector.
Kevin Hart, CEO of Green Check Verified, added that the report is vital for building a compliant and robust financial ecosystem for the cannabis industry.
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