Cannabis in America for 2021 & Beyond
Total Page:16
File Type:pdf, Size:1020Kb
to TheSpecial U.S. Cannabis Update Report 2020-2021 CANNABIS IN AMERICA FOR 2021 & BEYOND A New Normal in Consumption & Demand Sponsored by: In partnership with: TM © NEW FRONTIER DATA. ALL RIGHTS RESERVED. letter from the PUBLISHER UNQUESTIONABLY, 2020 HAS and projecting the most likely future. It is with great pride that New been an historic year for the legal cannabis in- Frontier Data along with report sponsor Merida Capital Holdings dustry, one of change at a global scale both thus release Cannabis in America 2021 & Beyond: A New Normal in economically and socially, and of the like unseen Consumption & Demand. in our lifetimes; a year whose impact and effects Herein, readers will find how despite the pandemic’s socioeconom- we are poised to feel throughout the fore- ic disruptions, total 2020 U.S. legal cannabis sales are expected to seeable future, if not indefinitely. Both in the exceed $20 billion, with post-election expansion and existing state United States and across the quickly evolving markets to combine for a projected compound annual growth rate North American cannabis markets overall, 2020 (CAGR) of 21%, and reach $41.5 billion by 2025. Annual U.S. sales marked an inflection point in the maturation of of legalized medical cannabis are projected to reach $16.3 billion by the industry as a whole, embraced and encour- 2025, and regulated adult-use sales meanwhile projected to top $25.1 aged by cannabis consumers’ behavior, demand, billion. While New Frontier Data will quantify them with characteristic and continually increasing appetites in general. sapience and expertise, the impacts and importance of such revenues While crises are dangerous, expensive, and de- for businesses, investors, and stakeholders throughout local, state, and tract from other priorities, history reminds us national economies seeking remedies and restoration after the worst how extreme threats can also inspire focus, dy- public-health crisis in a century shall ultimately prove immeasurable. namism, and innovation often born of necessity. Encompassing the legal cannabis and industrial hemp sectors, New The pandemic has been no different, and from it Frontier Data remains uniquely positioned to gather, analyze, and ex- opportunities have indeed emerged, especially in trapolate in vital detail for readers those key elements most necessary an industry where paradigms are being reshaped for stakeholders’ success. As is the case with all the reports available by newly emerging forces, morphed incentives, through New Frontier Data’s online intelligence portal Equio™, we and unanticipated possibilities. While coping with trust that you will benefit from fact-based assessments, our proprietary COVID-19, the global industry has now seen the insights, and the actionable intelligence to be leveraged for success World Health Organization recommend can- and agility in a fast-paced and indeed historically dynamic market. nabis for medical use and research, most of the U.S. mandate legal access to the plant, and the As we endure nightmares transmitted through COVID-19, we also United Nations remove cannabis and resin from persist toward solutions to end the pandemic. While data and science Schedule IV of the 1961 Single Convention on as ever shall guide our course, we also take heart to be reminded that Narcotic Drugs. in the unrelated and ironic numerology of Tarot, “21” is symbolic of success, completion, and fulfillment. After 2020, we welcome good Even as these potentialities only begin to take news however it comes. shape on the cusp of 2021, New Frontier Data is more committed than ever to uphold its mission of elevating the discussion around this unique plant: By not only reporting on what is happen- ing, but more importantly in giving you a first Giadha A. DeCarcer look at what can and most likely will happen; Founder and CEO, building upon the past, looking at the present, New Frontier Data © NEW FRONTIER DATA, ALL RIGHTS RESERVED // NEWFRONTIERDATA.COM // 1 table of CONTENTS About 1 New Frontier Data 5 Methodology 2020-2021 2021 & Beyond 8 Highlights 16 Key Trends to Watch National Industry 20 Overview 78 Trends 21 Legal Market Size & Growth 78 RegulatoryTrends 23 Legal Cannabis Sales Experienced Strong 82 Oklahoma Medical Market: A Growth Amid Covid-Related Disruptions Case Study in Market Access 26 COVID-19 Impact on U.S. Cannabis: 86 Social andEconomic Trends 2020-2021 Industry Outlook Special Update 97 Spotlight on Cannabis 40 Growing National Support for Legalization ProhibitionEnforcement and 44 Federal Actions vs. Public Criminal Justice Reform: Opinion & Morality of Use 108 InvestmentTrends 45 2020 Elections: State Legalization Footprint Continues to Expand 53 Shifting Cannabis Sentiment & Consumption: 2020 U.S. Election Special Insert 60 National Reach of Medical Key Cannabis Programs Takeaways 62 The Growing U.S. Cannabis 113 Consumer Population 66 Adult-Use Cannabis: 68 Six Years of Legal Cannabis in Colorado: 76 California's Revised Cannabis Sales Tax Revenues Lift Gloom of Market's Early Performance © NEW FRONTIER DATA, ALL RIGHTS RESERVED // NEWFRONTIERDATA.COM // 2 ABOUT New Frontier Data NEW FRONTIER DATA is an Mission independent, technology-driven analytics New Frontier Data’s mission is to elevate the discussion around company specializing in the global cannabis the legal cannabis industry worldwide by providing unbiased and industry. It offers vetted data, actionable vetted information intended to educate stakeholders to make business intelligence and risk management informed decisions. solutions for investors, operators, research- ers, and policy makers. New Frontier Data’s Core Values reports and data have been cited in more Honesty than 85 countries worldwide to inform • Respect industry leaders. Founded in 2014, New • Understanding Frontier Data is headquartered in Washing- • ton, D.C., with additional offices in Denver, CO, and London, U.K. Vision Be the Global Big Data & Intelligence Authority New Frontier Data does not take a posi- for the Cannabis Industry. tion on the merits of cannabis legalization. Rather, its mission and mandate are to Commitment to Our Clients inform cannabis-related policy and business The trusted one-stop shop for actionable cannabis intelli- decisions through rigorous, issue-neutral, gence, New Frontier Data provides individuals and organizations and comprehensive analysis of the legal operating, researching, or investing in the cannabis industry with cannabis industry worldwide. unparalleled access to actionable industry intelligence and insight, helping them leverage the power of big data to succeed in a fast-paced and dynamic market. For more information about New Frontier Data, please visit: NewFrontierData.com. We are committed to the highest standards and most rigorous protocols in data collection, analysis, and reporting, protecting all IP and sources, as we continue to improve transparency into the global cannabis industry. © NEW FRONTIER DATA, ALL RIGHTS RESERVED // NEWFRONTIERDATA.COM // 3 ABOUT NEW FRONTIER DATA Report Contributors Copyright PUBLISHER Copyright © 2020 by Frontier Financial Group, Inc., dba/ New Frontier Giadha A. DeCarcer, Founder & Chief Data. All rights reserved. Photocopying or reproducing this report in Executive Officer, New Frontier Data any form, including electronic or facsimile transmission, scanning or electronic storage, is a violation of federal copyright law and is strictly EDITOR prohibited without the publisher’s express written permission. John Kagia, Chief Knowledge Officer, This report may not be resold. New Frontier Data only sells its New Frontier Data publication directly or through authorized resellers. Information concerning authorized resellers may be obtained from New Frontier AUTHORS Data, 1400 I Street NW, Suite 350, Washington D.C. 20005. Kacey Morrissey, Senior Director, Industry Analytics, New Frontier Data While every effort has been made by New Frontier Data, Inc. to ensure the accuracy of information in this report, it accepts no responsibility Dr. Molly McCann, Director of Industry for errors or omissions. The report is sold as is, without warranty of any Analytics, New Frontier Data kind, either express or implied, respecting its contents, including but not limited to implied warranties for the report’s quality, performance, QUANTITATIVE MODELING merchantability, or fitness for any particular purpose. Neither New Kacey Morrissey, Senior Director, Frontier Data nor its dealers of distributors shall be liable to the Industry Analytics, New Frontier Data purchaser or any other person or entity with respect to any liability, loss, or damage caused or alleged to be caused directly or indirectly ADDITIONAL ANALYSIS by this report. Josh Adams, Senior Analyst, New Frontier Data COPY EDITOR J.J. McCoy, Senior Managing Editor, New Frontier Data PROJECT MANAGEMENT Hovanes Tonoyan, Project Manager, New Frontier Data DATE PUBLISHED December 2020 © NEW FRONTIER DATA, ALL RIGHTS RESERVED // NEWFRONTIERDATA.COM // 4 METHODOLOGY Data Overview New Frontier Data’s analysis in this report rep- The data included in this report is drawn from a wide range of resents a new threshold of modeling in the sources, including: evolving cannabis industry. The forecasts pre- sented herein leverage data collected over 12 GOVERNMENT AGENCIES years, both spanning the breadth of the canna- We obtained data from federal, state, and municipal agencies rang- bis industry and including insights gained from ing from tax revenues and medical cannabis patient participation