By Andrew Ward
No longer reeling from a bear market, the American cannabis industry appears poised to continue its growth throughout 2021.
Some states stand out to investors more than others due to strong performances and first-year potential.
According to Headset Data Analyst Cooper Ashley, sales from January to November of this year saw Massachusetts post the highest year-over-year gains. The state earned $621 million in sales during the period, which was considered a shortfall due to the two months of closures.
California saw strong growth in 2020, increasing revenue 50% on the way to earning $3.78 billion in sales.
Oregon ranked third with a 41% increase, totaling over $1 billion in 2020 sales.
Others topping the list included Washington (29%, $1.3 billion), Colorado (25%, $1.6 billion) and Nevada (11%, $649 million).
Ashley noted that Michigan did not receive a year-over-year value since its sales began on Dec. 1, 2019. However, the Wolverine State is considered another top performer, with sales topping $400 million in 2020.
“After a slow start, due to individual municipalities and regulations, Michigan’s adult use market has taken off, and their medical use market grew much faster this year than we’d anticipated,” Alyssa Jank, the U.S. cannabis manager for Brightfield Group says.
Jank highlighted Illinois for having a strong year as well, with sales 20% higher than forecasted.
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420 Investor Alan Brochstein touched on several states, including Florida for its growing patient count, profitable sales due to adding flower and the possibility of adult use on the horizon.
Brochstein also highlighted medical markets in Oklahoma and Pennsylvania. He credits Oklahoma’s low barrier of entry, making a “de facto legal market.”
“[Oklahoma] is by far the most successful implementation ever in terms of quickly ramping up,” he adds.
Pennsylvania’s robust program stood out to Brochstein. He commended the state for having an adequate number of operators despite limited licensing and its decision to include flower.
Promising Investments Across The Country, Particularly In The Northeast
Numerous other states appear ripe for investment opportunities.
Headset V.P. of Strategic Development Aaron Trahan says all eyes will be on the Northeast, namely Massachusetts and New Jersey as potential catalysts for the region.
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“If those neighboring markets such as New York, Pennsylvania, Maryland, and others fast track expansion, this could be the next big emerging region for the cannabis industry,” Trahan says.
Satya Capital CEO Nishant Reddy has his eye on New Jersey, as well as Arizona, Florida and Michigan, citing the size of each state and the growth potential each has.
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He hopes to bring his California-based cannabis brand, A Golden State, to each market.
Brightfield’s Jank also touched on Arizona’s promise in 2021, noting a strong medical market in place and adult use looking to begin next year.
She also highlighted the Midwest’s potential, extending beyond the major players in Michigan and Illinois.
Missouri stands out thanks to its recently launched medical market, which includes the sale of edibles, Jank says. “That market is likely to take off in the next few months.”
This article originally appeared on Benzinga and has been reposted with permission.