2023 Industry Outlook: Q&A With BDSA’s CEO Roy Bingham

2023 Industry Outlook: Q&A With BDSA’s CEO Roy Bingham
Cannabtimes

<![CDATA[Cannabis data and research company BDSA projects U.S. cannabis sales to grow from $25 billion in 2021 to $42 billion by 2026, with the new and emerging markets driving the majority of that growth, according to the company’s fall 2022 global cannabis market forecast. Cannabis Business Times spoke with BDSA CEO Roy Bingham to gather the company’s predictions on where the industry is headed in 2023 based on findings from its market forecast report. RELATED: Eastern Cannabis Markets Expected to Dominate Bingham says the company anticipates price compression and competition from the illicit market to continue to be a challenge for operators in 2023. The company also anticipates sales in mature markets to continue to decline in the new year, while sales in new and emerging markets, like New York and New Jersey, will see brisk growth. Here, Bingham offers additional insight into what to expect going into next year. AR: Does BDSA anticipate price compression and competition from the illicit market to continue challenging cannabis operators in 2023?  RB: Yes, we do. Unfortunately, we see the illicit market being a factor in certain states. I’m always worried about generalizing, but it is a significant factor in California, for example. (Editor’s note: According to a Los Angeles Times special report, unlicensed cannabis operations outnumber licensed operations in many of California’s most extensive cultivation areas, such as Trinity, Mendocino and Humboldt counties, by 10 to 1, CBT reported.) It’s also a significant factor in some of the newer markets like New York, and it’s unfair competition for the players who are going through the licensing process or have gone through the licensing process. What does it do? Well, it causes price compression because it means that there’s an excess live wholesale product, but also because the illicit channel doesn’t carry the burden of expenses and additional taxes. Therefore,…

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Source : 2023 Industry Outlook: Q&A With BDSA’s CEO Roy Bingham

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