The overall size of the Canadian cannabis industry is much larger than people realize, and it’s only growing. With more than 150 medical and recreational dispensaries, Canada has one of the largest cannabis industries in the world. And the industry is expanding fast.

The cannabis industry is poised to become an enormous industry and has a lot of room to grow. This industry has many different aspects such as production and distribution of medicinal and recreational cannabis, and there are several aspects of the cannabis industry that are still in its infancy. As the cannabis industry continues to grow, many people are still unaware of how big the cannabis manufacturing industry actually is.

With legalization on the horizon, the cannabis industry is booming. Much of the success of cannabis businesses is due to the supply chain that currently exists in the United States. This supply chain includes the cultivation and processing of those products, as well as the manufacturing of the packaging and distribution of cannabis products. For a more complete understanding of the cannabis supply chain, consider the following statistics:

As the legal cannabis industry has developed in the United States and other countries, restrictions on the cultivation of cannabis have been relaxed due to the dramatically increased demand for the non-psychoactive substance cannabidiol (CBD). Like THC, CBD is now used as an ingredient in supplements, vapes, tinctures and other packaged products. CBD treats for pets have become a big trend, and a British company even sells CBD toilet paper. To produce this dizzying array of new products, thousands of companies in the United States have been licensed or licensed to operate cannabis processing and production facilities. However, there are few sources that can provide insight into the size of this segment of the cannabis industry. In this special report, Powder & Bulk Solids and Packaging Digest provide an estimate of the number of licensed marijuana and cannabis processing and manufacturing facilities in the U.S. to get an idea of the current size of the cannabis sector in the country.


This report provides an estimate of the number of licensed/licensed cannabis businesses or enterprises processing and/or producing marijuana or cannabis in 2021. In this report, cannabis production is used as a generic term for both processors and producers due to the inclusion of both types of activities in the definition of NAICS code 312310 – Production of Cannabis Products (NAICS 2017 Canada Version V3.0 – Production of Goods and Services). However, the definition of cannabis production used here differs from the NAICS code in that it includes both marijuana and cannabis, since both belong to the plant genus cannabis. The report uses the term marijuana to refer to plant material with more than 0.3% THC and the term cannabis to refer to plant material with less than 0.3% THC, as defined in the 2018 Farm Bill and the Controlled Substances Act (CSA). Data are from state agency websites and are for 2021 unless otherwise noted. Some estimates were based on historical data or information from non-governmental sources, such as B. Reports made. Where information was not available for certain users and producers, calculations were made where necessary. Our assessment includes vertically integrated medical and adult-use businesses that process and/or manufacture licensed cannabis products, from seed to sale, as well as under temporary license. Estimates for cannabis businesses include permits to grow and process cannabis.

Estimated number of cannabis businesses in the United States by 2021

After reviewing publicly available data from all 50 states and the District of Columbia, PBS and PD estimate that there were 11,097 licensed or licensed cannabis establishments in the United States in May 2021. Within this group, an estimated 6,253 businesses are involved in marijuana production and 4,844 businesses are involved in cannabis production (see below to download a table of data by state). Image courtesy of Informa Markets Engineering word-image-3549 These national macro indicators highlight the tremendous growth and increasing importance of the cannabis sector in the cannabis industry. In 2017, Marijuana Business Daily estimated that the U.S. marijuana industry counted between 1,600 and 2,000 tincture manufacturers (including processors) out of an estimated 7,500 to 10,000 marijuana businesses. Using MJBizDaily’s 2017 estimate as a historical baseline, PBS and PD’s 2021 estimate shows that the number of marijuana businesses has increased by about 212% over the past five years. The growth in the number of business licenses in the marijuana subsector is related to the opening of new legal medical and recreational markets and the expansion of the marijuana industry in existing markets. PBS and PD expect the number of marijuana cases to increase as more states pass laws allowing marijuana use. In addition, some states may lift licensing restrictions in the coming years, paving the way for new companies to enter the industry. The smaller number of cannabis producers may be due to the fact that the cannabis industry in America is relatively young compared to the marijuana industry. Although there have been efforts to ease marijuana laws for some time – California was the first state to pass a medical marijuana law in 1996, and Colorado passed the first adult-use marijuana law in the country in 2012 – regulations on cannabis cultivation and production did not begin to ease until 2014. The 2014 Federal Farm Bill legalized the production of cannabis through pilot programs authorized by the U.S. Department of Agriculture. Hemp was later removed from the DEA’s list of controlled substances in the 2018 Farm Bill. The legislation also directs the U.S. Department of Agriculture to create a regulatory framework for the cannabis industry. The final rule proposing rules for domestic cannabis production was published on January 19, 2021, and became effective on January 22, 2021. Walk in strength. Like the marijuana industry, the cannabis sector seems to be growing rapidly at the moment. The number of cannabis processors in states that issue processing licenses reached 2,880 in 2019, up 483 percent from the previous year, according to data compiled by Vote Hemp, a cannabis industry advocacy group. Consulting firm Whitney Economics estimated that there were 3,197 licensed recyclers in the United States that year. Comparing 2019 data from Whitney and Vote for Hemp with our estimate suggests that interest in cannabis production has continued to grow in recent years. While the growing number of licensees paints an optimistic picture, Whitney Economics notes that an unprecedented cannabis harvest during the 2019 season resulted in an oversupply of more than 135 million pounds of cannabis biomass in the U.S. market, indicating a lack of processing capacity.

Cannabis production compared to other manufacturing industries

When you compare the estimated number of cannabis producers to other established manufacturing sectors, it’s clear how far this segment of the cannabis industry has come in just a few years. Image courtesy of Informa Markets Engineering word-image-3550 As the cannabis industry grows, it is also penetrating other manufacturing sectors, including the food and pharmaceutical industries. Hemp has a number of uses other than its THC-rich relatives, including fiber, grains, and oilseeds.

The future looks bright for cannabis cultivation

Powder & Bulk Solids and Packaging Digest predict that the lightning-fast growth of the cannabis industry will continue throughout the decade as state laws become more flexible and new licenses are opened. Although the industry will continue to face an uncertain regulatory environment, price volatility, and other challenges, the estimated number of cannabis businesses in 2021 indicates that the size of this cannabis market segment has reached a point where it is on par with other industries in the United States. To dive into the numbers for all 50 states and the District of Columbia, click below to download a table with all the numbers broken down by state.The cannabis manufacturing industry has been rising by leaps and bounds over the past few years, and as a result, the industry has been attracting a lot of attention from the public.. Read more about cannabis industry market structure and let us know what you think.

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