In 2022, legal sales of cannabis in California reached $5.3 billion, according to figures released by the California Department of Tax and Fee Administration, down 8.2% from $5.77 billion in 2021. Despite the drop, California still represents roughly 20% of the $26 billion industry.
For farmers in the California market, the price per pound of weed has dropped significantly since 2018, when legal recreational sales began. According to New Leaf Data Services, the wholesale price of cannabis in California is down over 50% since 2017.
What does all of this information mean? Essentially, California grows far more cannabis than can be legally consumed within its borders. The cannabis surplus results in fierce competition from the black market and a price battle within the legal industry.
Data below is cited from the USDA 2022 National Hemp Report released on April 19, 2023.
All Industrial Hemp: In 2022, the value of hemp production in the open and under protection for the United States totaled $238 million, down 71% from 2021.
Industrial Hemp in the Open: Planted area for the Nation in 2022 for all utilizations totaled 28,314 acres, down 48% from 2021. The value of hemp production in the open for the United States totaled $212 million, down 70% from last year. Area harvested for all purposes in the open totaled 18,251 acres, down 45% from 2021.
Hemp Under Protection: In 2022, hemp growers used 4.58 million square feet under protection for production, down 71% from 2021. The 2022 value of hemp production under protection in the United States totaled $26.1 million, down 77% from last year.
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