A new report estimates that the U.S. cannabis industry will need $65.6 billion to $130.7 billion in growth capital over the next decade to support new and existing cannabis businesses.
The report, by Whitney Economics and supported by CTrus and Green Check, forecasts $1 billion to $2.4 billion in interest revenue for lenders in this sector.
U.S. cannabis retail sales are predicted to rise from $28.8 billion in 2023 to $87 billion by 2035, which could mean adding 25,000 to 30,000 new licenses to the existing 40,000.
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“This growth cannot rely only on personal networking,” said Beau Whitney, founder and chief economist. “The report highlights regional opportunities to encourage banks to understand the risks and rewards of lending in this industry.”
Read Also: EXCLUSIVE: Only 27% Of Cannabis Businesses Are Profitable, Economist Says
Whitney mentioned at the Benzinga Cannabis Capital Conference in Chicago that cannabis retail sales may hit around $32 billion in 2024, with potential to double soon after.
The industry’s growth depends on legal consumer participation and licensing across states, with California, Florida, Illinois, New York, Pennsylvania, and Texas identified as key states for funding opportunities.
“This report should help facilitate discussions between financial institutions and the cannabis sector,” said Dotan Y. Melech, CEO of CTrust.
Kevin Hart, CEO of Green Check Verified, added that this report is vital for clients, as it supports a compliant and robust financial ecosystem for cannabis lending.
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