When considering whether to approve a regulated marijuana industry, advocates often tout the broader economic benefits of the additional tax revenue created.
But the beneficial impact exceeds just tax dollars.
The total U.S. economic impact from marijuana sales in 2022 is expected to reach $99 billion – up more than 20% from last year – and upwards of $155 billion in 2026, according to analysis from the newly published MJBiz Factbook.
To measure the industry’s economic impact, the MJBizDaily data team analyzed similar industries, consulted with economists and applied a standard multiplier of 2.8 on projected recreational and medical marijuana retail sales.
The numbers are a best guess because the marijuana industry’s structure is somewhat unique.
The industry encompasses agricultural, manufacturing and retail activity. But, in some markets, it also includes events and hospitality, which tend to have even higher economic impact than other industries.
For example, national parks have an estimated economic multiplier of six, according to Beau Whitney of Oregon-based Whitney Economics.
The hemp industry, which is largely driven by its agricultural components, has a standard multiplier of 1.9. That translates to an additional $11 billion for the U.S. economy in 2022.
