The nice thing about a rapidly-growing industry is the proliferation of new data and insights. We scoured the internet to find the most important and relevant marijuana statistics for the United States and the rest of the world in 2023.
In this report, you’ll see cannabis consumption stats, the national sentiment around weed acceptance, marijuana market growth, employment trends, and legal facts.
Let’s dive into the findings.
Key findings:
Young adults are more likely to try cannabis over cigarettes.
60% of cannabis consumers consider THC potency the leading factor when purchasing cannabis.
The marijuana industry will add nearly $100 billion to the economy.
Adult-use cannabis is now legal in 21 states.
88% of adults want to legalize weed.
Nearly $3 billion in retail cannabis taxes were collected in 2022.
Average retail cannabis prices have fallen approximately 20%.
Marijuana usage statistics
Young adults are more likely to smoke cannabis over cigarettes
According to Gallup, the percentage of young adults who smoke cannabis has increased by 5% since 2018. At the same time, the percentage of the same age group who smoke cigarettes has declined to a historical low over the past 3 years.
While increased cannabis consumption is not linked to decreased tobacco use, it’s an interesting trend that exposes the rapid growth and acceptance of cannabis over a historically popular (and federally legal) plant, tobacco.
Cannabis use rates by age vs. cigarettes
Over half of U.S. adults have tried cannabis
According to a recent YouGov poll, the percentage of U.S. adults who say they have tried marijuana is sitting at 52%, the highest measurement to date.
Just 8 years ago, only 40% of Americans said they tried cannabis at some point in life.
Among those who have tried cannabis, 43% used it in the past year and 72% used it in the past month.
Interestingly, it was adults between 45 and 64 who were the most likely to say they’ve tried marijuana (63%). This is followed by liberals (60%), Americans who live in the Western U.S. (56%), and white Americans (56%).
Cannabis consumption patterns are adapting to inflation
An independently conducted poll from Jushi uncovered that, despite rising inflationary pressure and cost-saving behaviors, demand for cannabis is resilient.
39% of participants said they purchased less expensive cannabis in 2022 compared to 2021, but 73% actually spent more money per transaction this year.
Additionally, THC percentage and price are the new leading factors considered when consumers purchase cannabis. Last year, branding and strain type were most important, but now 60% and 58% of respondents consider THC percent and price the most important factors, respectively.
21% of Dry January participants are replacing alcohol with cannabis and CBD
The same survey uncovered that the largest demographic of people replacing alcohol with cannabis are aged 21-24 (34%), followed by 25-34-year-olds (24%).
We’ve seen this trend of younger individuals replacing alcohol with cannabis rising since the pandemic. These Dry January statistics confirm the assumption that more people from younger generations are turning away from alcohol and using cannabis as an alternative.
Beverages, edibles, vape pens, and pre-rolls rise in popularity
This product category shift is possibly attributed to changing consumer behavior from medicinal cannabis consumption to more recreational use.
Instead of shopping for cannabis products to treat symptoms, consumers are hinting at a greater interest in portable, shareable recreational products.
The total U.S. cannabis supply is expected to top 48.8 million pounds
Whitney Economics calculated that the total amount of cannabis (both legal and illegal) will exceed 48.8 million pounds in 2022.
Their report also projects there will be more legal cannabis than illicit cannabis in the U.S. by 2026.
Cannabis cultivation is ramping up across the country. A common cultivation trend in new markets is a shortage of cannabis immediately following regulation, then an overproduction as the state ramps up production to meet demand, and eventually an equilibrium between marijuana supply and demand.
14% of Americans use CBD products
CBD is a broad category, and has hit mainstream since becoming federally legal in 2018. While marijuana users and CBD users may be different, it’s important to note usage in this group.
According to Gallup, 14% of all U.S. adults use CBD. This jumps to 20% for those ages 18-29.
Perhaps most interesting is the question of familiarity with CBD products: 49% of those age 65+ are unfamiliar with CBD (compared to just 26% of those age 18-29).
Americans' use of CBD products in 2020
The same study found the most common reasons for using CBD include:
Pain - 40%
Anxiety - 20%
Sleep/Insomnia - 11%
Arthritis - 8%
Migraines/Headaches - 5%
SingleCare, a medical prescription savings company, ran a similar survey in April of 2020 and found that 45% of current CBD users increased their use of CBD once the pandemic began.
Interestingly, their 2020 study found that 49% of CBD users take CBD to help with stress and anxiety, which is nearly 30% more than the 2019 Gallup poll.
Acceptance of recreational marijuana
Recreational marijuana use is legal in 21 U.S. states
As of January 2023, 21 states, Washington D.C., and Guam have legalized the recreational cannabis use (in addition to medical marijuana) for individuals over age 21: Alaska, Arizona, California, Colorado, Connecticut, Illinois, Maine, Maryland, Massachusetts, Michigan, Missouri, Montana, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Virginia, and Washington.
Maryland, Missouri, and Rhode Island were added to the list of legal adult-use cannabis states in 2022.
New Frontier Data analyzed the legalization efforts of states currently without adult-use programs and identified the six states most likely to pass recreational legislation by 2030. In order of the largest estimated cannabis consumer populations, those states are Florida, Pennsylvania, Ohio, Oklahoma, New Hampshire, and South Dakota.
Marijuana views are linked to ideology, religiosity, and age
As cannabis support grows, we’re seeing specific demographics lead the charge in favor of marijuana, while others are still firmly against the plant’s legality.
While national cannabis support is at an all-time high, Gallup found there are groups whose support is at least 10 points below the national average including those who attend church weekly (46%), conservatives (49%), Republicans (51%), and older adults (53%).
In identifying which subgroups support and do not support cannabis, we can better understand common opposing arguments to the plant and visualize the modern cannabis consumer. Because younger, more liberal demographics tend to favor legal marijuana, we can expect support to continue to grow as Gen Zers turn 21 and combine with Millennials to overtake older generations.
88% of adults want to legalize weed
In November of 2022, Pew Research Center found that 88% of US adults are on board with marijuana legalization for either recreational or medical use. 59% say cannabis should be legal for medical and recreational use, while only 10% say it should not be legal at all.
The first time Gallup gathered this data in 1969, just 12% of Americans were in favor of legal cannabis.
Changes in the medical marijuana market
Medical cannabis is now legal in 37 US states
Cannabis is also now legal in 37 states plus Washington D.C. for medical purposes: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Utah, Vermont, Virginia, Washington, and West Virginia.
Time from med to rec has shortened
According to Marijuana Business Daily, California took 7,308 days from med to rec to the state's first sale. Massachusetts took just 1,463 days.
States are learning to expedite processes and are eager to begin legal cannabis sales.
Time from med to rec to first sale is getting shorter
Cannabis market opportunity
The U.S. cannabis industry is could reach $100 Billion in annual sales by 2030
Every year, analysts predict what the cannabis industry is worth. And every year that number exceeds expectations.
New Frontier Data calculated the compound annual growth rate (CAGR) of the legal cannabis industry to be 11% between 2020 and 2030, ultimately putting the industry’s worth at more than $57 Billion by 2030.
Wall Street suspects the industry will be worth substantially more by 2030, projecting its value to reach $100 Billion. With increasing consumer demand and new legal markets opening up every year, that’s certainly possible.
According to a report from Urban Institute, California ($774 million), Washington ($517 million), and Illinois ($466 million) had the highest total state tax revenue collected in 2022.
On a per capita basis, Washington ($67 million), Colorado ($61 million), and Nevada ($48 million) collected the most cannabis tax revenue.
Among the 12 states with 12 months of tax collection in 2022, nearly $3 billion in excise taxes were collected.
Additionally, California, Colorado, Nevada, Oregon, and Washington all saw a decline in year over year tax revenue collected.
Cannabis sales are correcting
The COVID-19 pandemic led to large-scale increases in cannabis sales as a form of support for anxiety and boredom during stay-at-home orders. However, the decreases in year-over-year sales across cannabis markets may point to a correction, instead of a more concerning downturn in popularity.
Headset analyzed key markets to uncover what’s really happening with cannabis sales. They found that, in Oregon, for example, there was a 20% decline in monthly sales over the past year. Despite this, sales in Oregon are still up 25% over the past three years. Similarly, Washington experienced an increase of 17% in sales growth over the same time period.
Although the recent declines are significant, the positive growth in long-term trends is an indication of a market correction.
Cannabis Prices Are Increasing
While inflation has driven the cost of many household commodities higher, the opposite appears to be happening in cannabis. BDSA Retail Sales Tracking data found that average retail cannabis prices have fallen approximately 20% between Q3 2021 and Q3 2022, a larger decline than any previous 12-month period.
This price compression is especially prominent in mature markets. Data from Apex trading shows that the price of a pound of cannabis has fallen approximately 50% in Colorado over the past two years, while Oregon has seen an approximately 36% decline in the price of a pound of cannabis over the same period.
Decreases in consumer demand compared to the cannabis surge during the pandemic, combined with competitive pressure for producers and retailers has caused a significant drop in the price of cannabis.
Compressing prices impact cannabis retailers and squeeze profit margins, forcing dispensaries to work to combat the effects of marijuana price compression.
Cannabis mergers and acquisitions were down in 2022, but expected to surge in 2023
Investments into cannabis brands, including capital raises, slowed dramatically in 2022 after a big year in 2021.
Total M&A volume decreased by 62% in the United States compared to 2021, and there were 39% fewer transactions, according to Viridian Capital Advisors.
The merger and acquisition slowdown in cannabis is largely due to rising interest rates and low cannabis stock prices, meaning stock-based M&A deals are more expensive.
It appears that many larger cannabis operators and capital groups played it safe in 2022 while waiting for the market to level out. However, the outlook for 2023 points toward a spike in cannabis mergers and acquisitions, according to several experts.
Regulations and compliance are considered the top challenge facing cannabis organizations
Vangst’s State of the Cannabis Economy report found that 52.4% of cannabis business leaders consider regulations and compliance as their top challenge. A close second was inflation (50.3%), followed by federal prohibition (49.7%).
Despite these concerns, business leaders in cannabis are much more optimistic about their near-term sales and revenue compared to the overall U.S. economy. 65% of cannabis executives expect sales to increase in the next six months but 73% believe economic conditions are worse than a year ago.
Vangst Founder and CEO Karson Humiston offered some insight on the difference between cannabis business optimism and broader economic uncertainty. She noted:
“Cannabis already went through a ‘canna-cession’ in 2019. The best cannabis businesses quickly cut fat, focused deeply on fundamentals and are thriving today. The worst cannabis companies died.
Due to federal regulations, access to capital has always been tough for cannabis businesses. Since most companies have never had the luxury of unlimited capital, cannabis has always been a scrappy industry — one that has been primed to be more prepared than any other industry should we enter a recession.
Any coming recession is just another reminder that cannabis leaders should be building profitable businesses that are not reliant on endless rounds of funding.
The cannabis industry has massive tailwinds — another advantage that other sectors don’t have. New states are opening up legal cannabis programs every year, more consumers are entering the market, and legislation has positive momentum.”
Cannabis social equity
Social equity is important to consumers
According to Weedmaps, 57% of cannabis consumers believe everyone should have access to cannabis industry opportunities, with just as many people believing that everyone would benefit from those equal opportunities.
46% of respondents said they want to frequently visit women-owned cannabis businesses, 44% want to support minority-owned cannabis businesses, and 37% say they want to buy from LGBTQ+-owned businesses.
See this Guide to Social Equity Programs for dispensaries for a list of programs available in cannabis.
Leadership diversity in cannabis is stagnant or declining
cannabis social equity statistics
Looking at the data by sector, we see some employment areas are faring better than others. 38% of cannabis technology executives and 32% of cultivation executives are people of color, while 42% of cannabis nonprofit executives and 57% of cannabis media companies are women.
It’s clear that there is still work to be done to build a truly fair and equitable cannabis industry. Though some sectors are doing better than others, groups are still fighting to ensure every area of this industry is equally representative of the diversity we see across the United States.
Social equity programs are falling short
The MCBA National Cannabis Equity Report found that the number and efficacy of state social equity programs does not reflect the expressed commitment to achieving equity through cannabis.
The report found that while cannabis is legal for medical or adult use in 37 states, only 15 have social equity programs. Thirteen of the 21 adult-use states and two of the 18 medical-only legal cannabis states have social equity programs.
While social equity is often a priority in most cannabis legislation, it appears there has been a disconnect in effectively rolling out government-led social equity programs in the cannabis industry
Employment demand
In-person work meant more cannabis jobs
With the return of in-person interactions in 2021, cannabis companies were eager to hire more personnel.
Vangst filled over 150,000 positions in the industry in 2021, with over 1,500 of those being senior-level
Additionally, Vangst surveyed cannabis companies and professionals and found the majority of employees (34.4%) have less than a year’s experience in cannabis. On the other hand, over 30.6% have more than five years of experience in the industry.
Hiring stats in cannabis
The cannabis industry supports 428,059 jobs
According to Leafly's jobs report, 428,059 full-time equivalent jobs are now supported by legal cannabis as of January 2022. The industry created an average of 280 new jobs per day last year.
The report found that cannabis jobs increased by 33% year over year, with 2021 being the fifth year in a row of growth higher than 27%.
Cannabis legalization
After adult-use cannabis was legalized in 3 states in 2022, four more are planning to take cannabis legislation to the polls this year.
Ohio, Oklahoma and Pennsylvania, and Minnesota have a good chance to legalize adult-use marijuana this year, according to MJBizDaily.
In many of these remaining non-recreational or non-medical cannabis states, the question is no longer if marijuana will be legalized, but how and when.
President Biden pardons all federal offenses of simple marijuana possession
In a statement on October 6, 2022, President Joe Biden issued a statement saying “no one should be in jail just for using or possessing marijuana.” He goes on to say he will pardon all prior offenses of simple possession of marijuana and the federal level and urge all state governors to follow suit. The President also mentioned that he will be reviewing cannabis’ Schedule I designation.
While this announcement is significant and marks an important early step toward federal legalization and cannabis reform, it receieved mixed messages from the cannbis community.
Many are critical of the President’s lack of action throughout his presidency to follow through on promises of federal cannabis reform. It appears that this announcement may be too little too late for many in cannabis.
The Senate passed the historic Marijuana Research Bill
In November of 2022, the Senate passed the Medical Marijuana and Cannabidiol Research Expansion Act, a bill introduced to expand research into medications derived from the cannabis plant.
The goal of the bill is to facilitate research on cannabis and its potential health benefits. This will be done by streamlining the application process for scientific cannabis studies and removing existing barriers for researchers.
The Marijuana Research Bill is the first standalone marijuana-related bill to be referred to the president by Congress and pass the Senate.
New U.S. Cannabis Council advocates for federal legalization
Several top cannabis businesses, associations, and advocacy organizations joined to create the U.S. Cannabis Council (USCC).
The mission of the council is to “align and unify its members’ collective voices to advance cannabis reform” and also to “focus on securing federal reforms that advance social equity and promote fair, safe, and well-regulated markets nationwide as states continue legalizing cannabis at a rapid rate.”
Germany plans to legalize recreational weed, paving the way for the rest of Europe.
Germany is home to Europe's largest economy and also holds the boldest plan for cannabis legalization on the continent. The country plans to decriminalize the purchase and ownership of small amounts of cannabis under a long-awaited blueprint. Under this proposal, cannabis would be sold in licensed shops.
This news has ignited conversations and rising support for legal cannabis across Europe. Germany, however, is taking a very meticulous approach with regards to regulations, control mechanisms and transparency. Their legal framework may become the standard for the European continent – and potentially reach across the globe.
Thailand legalizes marijuana
In June 2022, Thailand removed marijuana and hemp from the Category 5 narcotics list, essentially decriminalizing the substances.
The change in legislation allows Thais the ability to grow and sell cannabis for medical use.
While this is an exciting step forward for a country that previously had some of the harshest drug laws in the world, there are some legal caveats to Thailand's legal cannabis program. For example, products for food or medicine must contain very low levels of THC and recreational use of marijuana, including smoking in public, is still illegal.
Sources: MJBizDaily, USCC, Leafly, Vangst, Marijuana Business Daily, Gallup, YouGov Pol., Civic Science, Urban Institute