Whitney Economics Report Finds More Than 48 Million Pounds of Cannabis Produced in U.S. in 2022

Whitney Economics Report Finds More Than 48 Million Pounds of Cannabis Produced in U.S. in 2022
Cannabtimes

<![CDATA[In a new report, Whitney Economics assesses that the total output of cannabis cultivated in the U.S. exceeds 48.8 million pounds. The figure from the 2022 U.S. Cannabis Supply Report includes cannabis in both the legal and illicit markets and covers all product types, such as flower, concentrates and edibles.Beau Whitney, founder and chief economist at Whitney Economics, said total supply is up slightly from 2021. This year’s supply pretty closely matches  the demand, he said.Some cultivators in Northern California and Southern Oregon have bumper crops and cultivate more, Whitney said, adding, “But generally, the common practice is if they excess inventory one year, then they don’t plant as much the next year. This has been confirmed by my interviews in the legacy fields as well as my interviews with state regulators in multiple states.”Whitney Economics projects total legal cannabis sales to be $29.3 billion in 2022 and tick up to $81.6 billion by 2030. The firm also forecasts that legal supply will surpass illicit supply beginning in 2026. RELATED: These 8 States Sold $12.8 Billion of Adult-Use Cannabis in 2021 Whitney said the current legal cultivation capacity in the U.S., if utilized at 100%, is about 1.5 times greater than the total U.S. demand for cannabis.“Some folks say, ‘Unlimited demand, unlimited licenses—that’s the best route to go,’” Whitney said. “Whitney Economics vehemently disagrees on that because it might work in a national market, but right now, when you have these state-siloed systems, you can very easily overproduce to the point where you have more supply than demand.“Michigan’s a perfect example of this—Oregon, Colorado, California. You have more supply than demand, and then that’s actually harmful to the cannabis industry because it drives prices down; it’s a race to the bottom; it drives out margins; it hurts small businesses, women-owned…

Excerpt only …
READ MORE BELOW
Source : Whitney Economics Report Finds More Than 48 Million Pounds of Cannabis Produced in U.S. in 2022

reposted by Cannabis News World

This site uses Akismet to reduce spam. Learn how your comment data is processed.