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The rapidly expanding legal cannabis market is on track to become a $62 billion industry by 2026. The northeast, in particular, is an epicenter of emerging cannabis brands. States like New York, New Jersey, and Pennsylvania are primed to win and will provide a huge revenue opportunity over the coming years.
While we don’t expect to see one company dominate the region, several prominent brands are rising. It will become clear whether these brands will successfully translate across markets and which new areas the multistate operators (MSOs) will enter throughout the coming year. Below are five to keep on your radar in 2022.
Florida-based Trulieve Cannabis Corp. had a big year in 2021 with the $2.1 billion acquisition of Harvest Health. With the deal’s completion, the brand expanded its reach to 11 states and approximately 150 dispensaries nationwide. Trulieve is poised for additional growth throughout 2022, as the MSO continues to ramp up distribution and retail and executes plans to expand into new states.
Green Thumb Industries
Green Thumb Industries, headquartered in Chicago, operates across 14 markets throughout the United States. With 66 retail locations and 16 manufacturing facilities, the company was named one of Crain’s Fast 50 companies in 2021. Green Thumb, which expanded throughout Massachusetts, New Jersey, and Pennsylvania, and entered into Rhode Island this year, shows no signs of slowing down in 2022.
Another top player is Cresco Labs, one of the largest U.S. MSOs founded in 2013. Cresco Labs’ footprint spans ten states, 21 production facilities, 46 dispensaries, and 51 retail licenses. In Pennsylvania, Cresco Labs quickly entered the market as the first approved cultivator and had the first product to market and the first dispensary sale. The brand’s proven ability to enter and win in new markets positions them to continue expanding rapidly throughout other markets in 2022.
Headquartered in Massachusetts, Curaleaf operates 111 retail locations across 23 states. Curaleaf is the first and only MSO to have a significant presence in Europe with Curaleaf International. The company saw organic growth of 65% between Q1-Q3 in 2021 compared to the industry-wide growth rate of 58% during the same period and is poised to continue expanding market share over the next year.
Verano’s portfolio comprises over 1,000,000 square feet of cultivation with 12 active production facilities throughout 12 states. The brand has plans to open more than 90 new retail locations in addition to the 89 already operating. The MSO has completed 13 acquisitions since going public in February 2021 and plans to execute a two-pronged growth strategy for continued expansion. The process consists of a deliberate M&A approach, seeking targets in states expected to transition to recreational use and high-performing stores.
In this continuously evolving industry, 2022 will be a pivotal year for emerging research about how these brands will translate cross-market. As rising MSOs continue to expand their geographic footprints, these top brands will be ones to watch, especially in the rapidly growing northeast market.