Whitney Economics recently collaborated with CTrust and Green Check to identify lending needs and opportunities in the cannabis sector, culminating in the release of its U.S. Cannabis Debt Report for 2024. The following is excerpted from the executive summary.
Each Cannabis Business Opportunity is Shaped Differently.
There are tremendous opportunities for the banking industry in the United States cannabis sector. These opportunities are matched by significant risks. All risks can be mitigated, at least to some extent, by expertise. To date, most finance-related data associated with the cannabis industry is backward looking. With accurate forward-looking data, banks can assess the opportunities for cannabis businesses in their states or regions, and then choose how much, if any, of that share they will support. With greater levels of support, cannabis regulatory reform and legal participation will increase. These increases will serve as catalysts for further growth. This report offers projections, for the first time, on the amount of lending that will be required to launch and support the next generation of cannabis businesses in the United States.
● As of October of 2024, there are roughly 40,000 current licensees in the U.S. cannabis industry.
● Opportunity exists to add 25,000 to 30,000 cannabis business licenses to the U.S. economy by 2035.
It is crucial to note that not every state market presents an equally high-quality opportunity. Some states are saturated with businesses, while other state markets have plenty of room for growth. Business operators should understand that entering the cannabis industry in an oversaturated state market is a highly risky proposition. To assess risks and opportunities, it is important that investors and operators examine opportunities, and their markets, on a case-by-case basis. This is equally true for lenders when evaluating business operators. Read the entire executive summary here.