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The Latest Historic Progress of Cannabis Industry in the United States
Release Time:2022-03-31 Author/Source:DrHemp

The American cannabis industry has also ushered in a new historic beginning!

Today's theme:

The clear sky in Beijing after the rain is exceptionally clean and blue, and the spring breeze is warm. The American cannabis industry has also ushered in a new historic beginning, which has also played a very positive role in promoting the development of the world cannabis industry. Key developments that we can't miss:

Hemp Industry Daily reported that the US Senate passed Cannabis Research Bill.

The Hill reports that the U.S. House of Representatives plans to vote on the MORE bill this week, which will legalize Cannabis.

New Frontier Data has just released its annual market data, 2022 U.S. Cannabis Report | Industry Projections & Trends "2022 American Cannabis Report: Industry Forecast and Trend", revealing the positive trend of legalization and market development in the United States.

I. Overview of current legalization in the United States

01 State

The continuous expansion of national legalization is the foundation of the overall industry growth. The exciting legalization news read from the new cutting-edge data is the symbolic development trend of the whole industry. Since the beginning of 2021, four new states (CT, NM, NY and VA) have adopted measures to legalize Cannabis for adults, and two (AL and MS) have legalized medical Cannabis. These states that make high THC marijuana legally available for adults reach 19 (including Washington, DC) and the total number of states where high THC Cannabis is legally available for medical use reaches 39 (including Washington, DC).

02 People

So far, a total of 148 million Americans live in these 19 adult-use states and 248 million people live in 39 medical-use states. 44% of American adults can now obtain legal adult-use Cannabis, and nearly three quarters (74%) can now obtain legal medical Cannabis in some form. On the contrary, only 89 million Americans (26% of the US population) live in states where possession and use of marijuana is still illegal.

03 Regulations

On March 28th, 2022, the United States Senate passed the Cannabis Research Act and unanimously approved a bipartisan bill to "cut red tape" and remove the obstacles to scientific research on the medical properties of cannabis and cannabidiol. According to the press release issued by California Democratic Senator Dianne Feinstein (Diane feinstein) last Thursday, the Senate approved S. 253 by voice vote. This measure will authorize the U.S. Food and Drug Administration (FDA) to study cannabis products-now it has been submitted to the U.S. House of Representatives for consideration. The bill was co-sponsored by Senator Chuck Grassley (Chuck Grassley), a Republican from Iowa, and Brian Schatz, a Democrat from Hawaii. Both of them praised the success of the bill. "This bipartisan bill … will authorize FDA to analyze CBD and medical marijuana products in a safe and responsible way so that the American public can decide whether to use them in the future based on reliable scientific data." The Senate's measure came nearly a year after the Drug Enforcement Administration of the United States indicated that it might relax restrictions on cannabis research.

According to The Hill, the U.S. House of Representatives will vote on the MORE bill-Marijuana Opportunity Reinvestment and Exp Ungem Act this week, which will legalize federal marijuana, and the Democratic-controlled house has the right to pass extensive reform programs. Last week, the Senate unanimously passed a bill to expand scientific and medical research on cannabis, and last month, the House of Representatives passed the SAFE Banking Act "Safe Banking Act" for the sixth time, which will allow cannabis enterprises to obtain traditional financial services that are currently blocked by the federal government. The Senate, narrowly controlled by the Democratic Party, never accepted the proposal. Congressman Earl Blumenauer (D-OR), co-chairman of Congressional Cannabis Caucus (Congressional Cannabis Caucus), told The Hill that this Congress "represents a great change in cannabis policy".

MORE Bill–A procedure will be established to eliminate non-violent federal Cannabis convictions, and a federal tax will be levied on Cannabis sales, which will be used to fund projects to help communities negatively affected by the drug war. The Chamber of Commerce passed this legislation by 228 votes to 164 votes in December 2020. Five Republicans crossed the line and voted for it, and six Democrats joined the opposition party. The Republican Congressman Don Young (AK) Don Young (AK) who voted for the bill passed away last week. Blumenauer (Blumenau) said that the voting gap "may be even tighter"

04 Review of American Legal Progress at the End of 2021

On December 15th, the U.S. Senate officially approved the Cannabinol and Cannabis Research Expansion Act (S.2032), allowing the scientific research to be extended to cannabis and its derivatives, including cannabidiol CBD.

On December 5th, the U.S. House of Representatives formally passed the More Act with 228: 164 votes. This act effectively legalizes marijuana by deleting it from the Controlled Substances Act, and will also eliminate the conviction of non-violent marijuana crimes. This legislation will also allow states to continue to choose how to regulate commercial sex of marijuana. At the same time, this bill will enable doctors of the U.S. Department of Veterans Affairs to write many suggestions for medical marijuana in states and regions where medical marijuana is legalized, and make marijuana enterprises eligible for funding from relevant administration. On July 24th, the U.S. House of Representatives formally passed the NDAA amendment to the National Defense Authorization Act, which approved that American military personnel can legally use cannabidiol CBD and other cannabis-derived products, provided that the cannabis products comply with federal, state and local laws. The Act stipulates that the Ministry of National Defense shall not prohibit members of the armed forces from possessing, using and eating legal cannabis products, and allow members of the armed forces who have used cannabis to rejoin the army. On July 22nd, the US Food and Drug Administration (FDA) issued a guide on cannabis-derived drugs, aiming at developing CBD cannabis drugs with low THC for the US medical market.

2.the future forecast of American cannabis industry development

New Frontier Data provides an expert analysis of the driving factors that shape the cannabis economy in the United States, including potential state market activation, consumption trends, product innovation and sustainable development efforts. Some important information doctor code words for your reference:

01 Growth of potential new legal state market:

According to the analysis of state legalization efforts by New Frontier Data, it is determined that 9 states show great possibility of legalizing adult marijuana use, and 9 states may legalize medical use before 2030. The legalization of medical use in these states will bring legal medical marijuana to nearly 74 million Americans (currently 8.9 million cannabis consumers) through nine markets. Legalizing adult cannabis use in nine designated markets will increase adult cannabis use by 67 million Americans (among which there are an estimated 10 million current cannabis consumers). If all 18 potential states successfully implement legalization measures in the next 8 years, it will not only increase the legal retail sales of the United States by $14.5 billion per year by 2030, but also bring immeasurable political pressure to the federal reform. The new market will increase the proportion of Americans living in states with some form of legal Cannabis to 96%, while the proportion of Americans living in states where adult marijuana can be legally used will increase to 64%. Although it is difficult to determine when the federal legislation may happen or what form it may take, it seems clear that the expansion of the legal market will create further public support and social normalization that legislators can hardly ignore. Assuming that all 18 potential markets are legalized by 2030, the legal cannabis purchase will meet 47% of the total demand, which is higher than 27% in 2021, indicating that the illegal market continues to be destroyed.

02 Current sales growth of states in legal market:

In 2021, the legal cannabis market value was estimated to be USD 26.5 billion, and the sales volume is expected to reach USD 32 billion in 2022. Driven by strong consumer demand and the influx of newly operated legal state markets, the annual legal sales of cannabis in the United States is expected to grow at a compound annual growth rate (CAGR) of 11% between 2020 and 2030, and reach more than $57 billion. In the currently legal states, it is expected that the annual sales of medical Cannabis will increase at a compound annual growth rate of 7% by 2030, from 8.5 billion dollars in 2020 to about 16.7 billion dollars in 2025. In the same period, the sales growth of adult use is expected to increase from USD 11.7 billion to USD 40.9 billion at a compound annual growth rate of 13%.

03 Growing cannabis consumer groups in the United States:

The self-reported use rate of cannabis has risen sharply since 2012, and the number of American consumers will increase from 47 million in 2020 to 71 million in 2030. By 2022, it is estimated that 52 million American adults will consume marijuana at least once in legal and unregulated markets. This number is expected to increase by about 4% every year in the next eight years, reaching about 71 million American consumers by 2030. In addition, the U.S. medical market continues to expand, and the number of registered patients is expected to increase to 5.7 million (1.6% of the adult population) by 2030.

It is worth noting that among the 10 states with the largest number of consumers, five states (namely Florida, North Carolina, Ohio, Pennsylvania and Texas) are still a few years away from the legalization of adult use, while Texas and North Carolina have not yet approved complete medical plans. The current restrictions on legal cannabis in these markets highlight the scale of medium-term opportunities, as there are still many major markets in the legal market that can be expanded to in the next few years.

04 The number of participating states of the National Medical Marijuana Program is increasing:

At present, 39 state markets (including DC) are operating legal medical cannabis programs, and in 2021, the total number of registered patients in the United States exceeded 4.4 million. In these legal medical use states alone (assuming there is no new market by 2030), New Frontier Data expects that 5.7 million patients will register by 2030, accounting for nearly 2% of the total population of the United States. Although most Americans now live in a state with a medical market, specific state regulations (such as the list of qualifications, product restrictions, plan participation costs, retail access and product taxes) all significantly affect the participation level, growth rate and scale of each state.

The recent legal medical market usually tends to a wider range of cannabis use symptoms, allowing healthcare practitioners to recommend medical cannabis to cope with the increasingly diverse list of qualified conditions. Among the first states to legalize the medical use plan, the most commonly approved eligibility conditions include terminal illness, epilepsy, cancer, HIV/AIDS and glaucoma. These conditions are still the most common in all states that specify eligibility conditions, although newer markets have greatly expanded their list to include diseases such as PTSD, anxiety, Alzheimer's and autism, Trum's disease, etc.

In addition, as more and more studies show that cannabis may help reduce the rate of opioid dependence and overdose, many states have turned to cannabis as a response to the serious opioid crisis. Some are indirect (by taking chronic pain as a recognized qualification condition), others are by explicitly allowing any patient with opioid prescription to automatically qualify for medical marijuana use.

Although most states have allowed the public to apply for new conditions, and some states have greatly increased their list of qualified conditions through this process, doctors' discretionary permission (that is, medical authorities can prescribe marijuana for any conditions they deem appropriate) has become the biggest catalyst for expanding medical programs. In the past few years, Oklahoma's medical programs have experienced explosive growth, and now have the highest patient participation rate in the country (leading by a large margin). Although participation in Oklahoma's medical market is supported by other low regulatory barriers to entry (for example, there is no license ceiling and it is generally easy to enter retail pharmacies), the freedom granted to doctors contributes to the explosive growth of this market.

2022 US CANNABIS

To sum up, the votes of the U.S. Senate and House of Representatives have attracted a lot of attention, and the sales of the current legal market states in the United States disclosed by new cutting-edge data are increasing, the consumption groups of cannabis in the United States are growing, and the number of participating states and users of the National Medical Cannabis Program is also growing. What a positive development trend the epidemic is now!

With the continuous advancement of legalization of cannabis in the United States and the world, the development prospect of cannabis industry is becoming more and more clear, and the development trend of cannabis market is becoming more and more optimistic. Dream catchers chasing green gold industry will wait and see!