Cannabis had a blockbuster year in the year 2020. Sales hit a record high as people confined to their homes during the Covid-19 lockdown consumed cannabis to reduce their stress, anxiety and boredom.
With cannabis retailers deemed essential businesses during the lockdown, marijuana sales in California, Colorado, Nevada, Oregon and Washington state grew 39.2% in 2020, according to MJ Biz Daily.
However, with the end of the lockdown in 2021, marijuana retail sales took a dive in those five states, showing just 15.9% growth in total sales year-over-year, according to Headset, a Seattle-based analytics firm. Michigan and Pennsylvania also saw sales decline in 2021
This year posted a record for legislative-driven marijuana legalization as markets were created in five new states: Alabama, Connecticut, New Mexico, New York and Virginia. MJ Biz predicts that those five markets together will generate more than $5.1 billion in annual sales by their fourth year of operation. Still, MJ Biz says this year’s numbers could be a harbinger of events to come in 2022.
According to New York-based financial and strategic advisory firm Viridian Capital Advisors, the total amount of capital raised in the cannabis market as of December 24 is $12.7 billion, down about $1.4 billion from the same period in 2018 (previous peak year). . Dedicated to the cannabis market.
US equities rose 60%, or $1.9 billion, compared to 2018, but debt was where the action was taken. Viridian said the amount of US debt increased 806%, or $3.4 billion. Meanwhile, the amount of equity raised in Canada fell by $5.9 billion, or 76%, and loan growth fell $244 million, or 12%. The trend continued in the rest of the world as total capital sank 80%.
Another trend this year was the breakout year of cannabinoids, which didn’t contain CBD (cannabidiol). A smaller cannabinoid, cannabinol, known as CBN, became more available to consumers as cannabis companies used newer, faster methods to produce CBN products. Sometimes CBN products are combined with THC to make sleep aids. THC is the psychoactive compound in cannabis that leads to a high. According to MJ Biz, CBN retail sales saw such growth in 2021 that it now accounts for more than 14% of retail food sales in California’s recreational market. CBN reported similar gains in other western states.