As the marijuana industry continues to expand, a new economic analysis finds that the capital that cannabis businesses are expected to need will translate into upwards of $2.4 billion in revenue for banks from loan interest payments over the next 10 years.
The report from CTrust, Whitney Economics and Green Check Verified projects that the state-level marijuana market will require between $65.6 billion and $130.7 billion in growth capital for new businesses and to refinance existing cannabis companies through 2035, which would generate anywhere from $1 billion to $2.4 billion in interest revenue for financial institutions that service them.
While it’s difficult to anticipate just how much larger the cannabis industry will become over the next decade—with multiple states such as Florida set to decide on legalization during next month’s election alone—the analysis projects marijuana sales will balloon from $28.8 billion in 2023 to $87 billion by 2035. And to meet that demand, the report said the number of licensed operators would need to nearly double to 40,000.
“The funding needed to realize this growth cannot be supported solely by friends and families,” Beau Whitney, founder and chief economist of Whitney Economics, said in a press release. “By demonstrating regional
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