Top Revenue Generating U.S. Cannabis Markets

This year, U.S. cannabis market opportunities abound for potential investors and current license holders looking to expand their operations. This article outlines the Top Revenue Generating U.S. Cannabis Markets to watch. There are six states in the midwest and south with new medical cannabis licenses available, four states with both medical and adult-use license processes on the calendar, and nine states with adult-use marijuana opportunities spanning from Arizona to Illinois, and as far south as Virginia.

Many stakeholders are turning their attention to New York and New Jersey in the mid-atlantic, two states that legalized adult-use marijuana this year that have the potential to make a big industry impact. In 2020, U.S. cannabis sales hit a new record of $17.5B with most growth coming from adult-use markets, according to cannabis data platform BDSA. Looking ahead, the CB Advisors team has compiled the top U.S. cannabis markets by estimated revenue with active license opportunities available.

1. New York (Adult-Use): $4.2B in annual sales by 2027.
   • Types of licenses available: Cultivation, Nursery, Processor, Retail, Microbusiness, Distributor, Delivery, Consumption Lounge and Cooperatives.
   • Number of adult-use licenses to TBD by Office of Cannabis Management with 50% going to social and economic equity applicants.
2. Illinois (Adult-Use): $1B in annual sales in 2020
   • 60 Craft Grower and 60 Infuser additional licenses to be awarded in 2021 – 2022.
3. New Jersey (Adult-Use): $850-950M in annual sales by 2024.
   • Type of licenses available: Cultivation (37 licenses to be issued for the first 2 years), Delivery, Distribution, Manufacturer, Retailer, Wholesaler, Microbusiness and Consumption Lounges.
   • Number of licenses for each type is TBD based on market demand by August 2021. *Social equity micro business licensing opportunities
4. Alabama (Medical): $600M in annual sales by its third year.
   • Cultivator: No more than 12 licenses to be issued
   • Processor: No more than 4 licenses to be issued
   • Dispensary: No more than 4 licenses to be issued, each will be able to open up to 3 locations in different counties
   • Transporters: No limitations established yet
   • Integrated Facilities: No more than 5 licenses to be issued to those authorized to cultivate, process and dispense medical cannabis
5. Arizona (Adult-Use): $700-760M market worth by 2024.
   • Issuing 26 Social Equity cannabis business licenses that are vertically integrated. This means each licensee will be able to cultivate, manufacture & dispense.
6. Connecticut (Adult-Use): $725M in annual sales by fourth year.
   • Type of licenses available: Retailer, Hybrid retailer (which sells both adult-use and medical cannabis), Cultivator (which cultivate 15,000 square feet or more), Micro-cultivator (which start between 2,000 and 10,000 square feet), Product manufacturer, Food and beverage manufacturer, Product packager, Delivery service and B2B Transporter.
   • Number of licenses TBD with 50% reserved for social equity license applicants.
7. Ohio (Medical): $500M in annual sales by 2022-2023.
   • Issuing 73 additional dispensary licenses in 2021 (currently 57 existing dispensaries)

What Potential Cannabis License Applicants Should Do Right Now

If you’re interested in applying for a cannabis business license in a medical or adult-use market, it is important to start preparing now to get ahead of the competition. Contact the CB Advisors team today to start developing your licensing plan and approach.

We have successfully secured licenses for clients in over 20 markets across the United States. If you are interested in applying for a cannabis business license, contact us by phone at (602)-290-9424‬ or email (info@thecannabisbusinessadvisors.com) for more information.