More than 48.8 million pounds of cannabis were grown in the United States in 2022, including both legal and illegal sources, according to a new report from Whitney Economics.
According to the U.S. Cannabis Supply Report 2022, prepared by economist Beau Whitney, the legal U.S. cultivation capacity alone, if utilized fully, is greater than the country’s demand, but legal supply will not outpace illicit supply until 2026. The total consumer demand in the U.S. market is driven by approximately one-third of adults, aged 18 and older, or about 88.6 million people.
Whitney Economics uses proprietary models and state-based data to develop supply numbers for every state market, regardless of the regulatory status of cannabis, and breakdowns by market type and by grow type.
The report notes that in 2021, 75% of consumer demand was satisfied through illicit channels, however Whitney Economics predicts illicit demand will decline consistently for the next decade as legalization continues to spread to new states. Additionally, in 2021, 33.5 million pounds — or about 70% of the supply — was “exported from one state to another,” making it part of the illicit market.
An analysis of total canopy in the United States, including legal and illicit channels, reveals a majority of the U.S. cannabis supply is grown indoors from a pound perspective, even though 73.4% of total canopy square footage is outdoor.
— Brian Beckley