How quickly a cannabis company sells their inventory can be a good indicator as to how popular their brand is among patients and/or consumers. It is not a perfect science, as some companies can obviously sell their inventory faster if they don’t produce as much of it, however, for companies that operate on a large scale, inventory turnover rates can be insightful.
“As the cannabis industry matures, additional financial metrics become important. One such metric is Days Inventory Outstanding (DIO), which provides insight into how efficiently companies manage their inventory.” states The Dales Report.
The media outlet recently examined DIO data for multi-state operators (MSOs) in the United States and determined that Glass House Brands had the lowest DIO at 54 days. Vext Science had the largest DIO at 183 days. Below is a list of companies involved in the analysis:
- Glass House Brands
- C21 Investments
- Green Thumb
- Jushi Holding
- Ascend Wellness
- Cresco Labs
- Planet 13 Holdings
- MariMed
- TerrAscend
- Curaleaf Holdings
- Verano Holdings
- The Cannabist
- Ayr Wellness
- 4Front Ventures
- Trulieve Cannabis
- Vext Science
The average DIO for the companies involved in the analysis was 118 days. The United States adult-use cannabis industry has generated over $20 billion in total tax revenue since the first legal recreational cannabis purchase was made in Colorado on January 1st, 2014 according to a report by the Marijuana Policy Project.
“Through the first quarter of 2024, states have reported a combined total of more than $20 billion in tax revenue from legal, adult-use cannabis sales. In 2023 alone, legalization states generated more than $4 billion in cannabis tax revenue from adult-use sales, which is the most revenue generated by cannabis sales in a single year.” the Marijuana Policy Project stated in a press release.
79% of people living in the United States lived in a county with at least one regulated cannabis dispensary according to an analysis by the Pew Research Center. The Pew Research Center also found the following:
- 74% of people in the U.S. live in a state where recreational or medical cannabis is legal
- There are nearly 15,000 cannabis dispensaries in the U.S.
- California has the most overall dispensaries (3,659)
- Oklahoma has the most dispensaries per capita (36 dispensaries for every 100,000 residents)
Total legal cannabis sales in the United States are expected to reach $31.4 billion in 2024 according to a recent analysis by Whitney Economics. Additionally, leading cannabis jobs platform Vangst, in conjunction with Whitney Economics, estimates that the legal cannabis industry now supports 440,445 full time-equivalent cannabis jobs in the United States.
Whitney Economics also projects the following legal cannabis sales figures in the United States for the coming years:
- 2024: $31.4 billion (9.1% growth from 2023)
- 2025: $35.2 billion (12.1% growth from 2024)
- 2030: $67.2 billion
- 2035: $87.0 billion
The emerging legal cannabis industry in the United States is projected to add roughly $112 billion to the nation’s economy in 2024 according to an analysis by MJBiz Daily. The projection is part of the company’s 2024 MJBiz Factbook.
“The total U.S. economic impact generated by regulated marijuana sales could top $112.4 billion in 2024, about 12% more than last year,” MJBiz stated in its initial reporting.