Echelon Wealth Partners explores the investment case for the U.S. cannabis industry, framing it as a large, emerging consumer category driven by legalization and existing demand. The paper argues the opportunity could rival major vice categories, with spending per user already exceeding alcohol and tobacco, and highlights multi-state operators as structurally advantaged.
Cannabis In America
Echelon
Matthew Pallotta, Andrew Semple
Research
101 Pages
Key Takeaways
$60B Market Potential: Legal U.S. cannabis could reach ~$60B annually, with a modeled range of $48B to $72B depending on 10–12% usage rates and ~$2,500–$3,000 spending per user.
User Base Expansion: Current regular users sit near 24M and may approach 30M, implying steady growth as legalization expands and illicit demand shifts into regulated channels.
Scale Drives Advantage: Multi-state operators benefit from access to 2/3 of the U.S. population across legal markets, offering stronger capital access and geographic diversification than single-state peers.
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