Cannabis

Like in much of the world, cannabis remains federally illegal for cultivation, sale, and possession in the United States. Despite this, many states have legalized the drug for recreational use. The first states to do so were Colorado and Washington in 2012. As of 2021, 18 states plus the District of Columbia have legalized cannabis for recreational use. Every state has its own rules regarding cultivation, possession limits, and sales. Despite the COVID-19 pandemic, the market for recreational cannabis in the U.S. grew substantially in 2020. Total sales increased by over 50 percent compared to 2019 to reach 11.6 billion U.S. dollars. California is the single largest market in the U.S., worth 4.4 billion dollars in 2020 and already triple the market size of the first year of legalization. Flower and pre-rolled joints have been the predominant cannabis products since the market's inception but they are slowly loosing their position. Market share for these products has declined from 57 percent in 2017 to 46 percent in 2020. Vape and edible products have been the beneficiaries. The tax generated from recreational cannabis has been a big motivator for states to legalize sales. California gained over a billion dollars in tax revenue in 2020 and Washington generated over 600 million.