Legal Marijuana Sales Could Hit $6.7 Billion In 2016
Just how big is the market for legal pot?
A new report by a leading marijuana industry investment and research firm found legal cannabis sales jumped 17%, to $5.4 billion in 2015, and they will grow by a whopping 25% in 2016 to reach $6.7 billion in total U.S. sales. The numbers are staggering, considered the first recreational dispensaries opened for business in Colorado only two years ago.
ArcView Market Research includes the prediction that the legal cannabis market will see a whopping $21.8 billion in total annual sales by 2020.
(By comparison, at that point, the legal marijuana market could be bigger than the National Football League, which saw roughly $12 billion of revenue last year. ArcView expects the legal pot market to show a compound annual growth rate of nearly 30% over the next few years)
Legal Marijuana Market in Canada Could Have 8 Million Buyers, Poll Suggests
In California, Marijuana Is Smelling More Like Big Business – The New York Times; 4/11/16
“People are definitely salivating over the California market”, said Troy Dayton, chief executive of a research firm in the Bay Area that specializes in marijuana.
U.S. Legal Adult-Use Marijuana Sales Grow 184% in One Year – Forbes; 2/1/16
The inevitable legalization of pot sets off a new California Gold Rush – L.A. Times; 11/25/15
Here at the New West Summit, everyone seemed busy. Hedge fund managers and venture capitalists mingled with medical cannabis dispensary owners, app developers and all manner of cannabis entrepreneur. The whiff of money was almost as strong as the whiff of cannabis.
The Bank of Weed is Open for Business – Yahoo; 8/13/15
Oh, no big deal, it’s just a marijuana get-together. A bunch of guys are chatting, about weed, yes. But the talk is also about revenue, and futures, and even the NASDAQ. Turns out, we’re at a convention center for a business expo on cannabis. And it’s crawling with straight-laced financiers and ex-Wall Streeters.
Pot startups cash in on wave of legalization -CNN Money; 3/9/15
“A wave of pot legalization hasn’t just been a boom for growers. A slew of other businesses are jumping on the bandwagon as well.”
Legal Marijuana is The Fastest-Growing Industry in the U.S.: Report -Huffington Post; 1/26/15
Marijuana Edibles Could Create Multibillion Dollar Market
“I’ve studied the growth of the nutrition and the organic food industries for years,” said Patrick Rea, executive editor of the ArcView report. “I believe the cannabis industry will be an even bigger opportunity.
Why the market is growing
The growth in edibles, which are higher priced, have helped fuel sales, says New Frontier Director of Analytics John Kagia, author of this year’s State of Legal MJ Markets report. “ (Edibles) also come at higher price points than the flower does, which means the businesses are able to capture higher sales per customer through the sales of these new products.”
Pot edibles were big surprise in first year of recreational sales
The proliferation of marijuana-infused edibles stunned state and industry leaders, making it one of the biggest surprises during the first year of legal recreational marijuana sales. Potent cookies, candies and drinks — once considered a niche market — now account for roughly 45 percent of the legal marijuana marketplace. For many inexperienced users, the idea of discreetly nibbling on a chocolate truffle was more appealing than smoking pot.
Edible Weed May Be Half of the $5.4 Billion Pot Business – Bloomberg; 2/4/16
High Market Potential in the Cannabis Industry
Marijuana could become a $35 billion market by 2020, according to GreenWave Advisors, an industry research firm that tracks retail sales.
Dooma Wendschuh is an entrepreneur who makes distilled marijuana extracts. At an investor summit in Denver earlier this year, Wendschuh says he was “besieged by millions of dollars” worth of unsolicited offers to invest in his company. “If you make it, it will sell. It’s unreal,” Wendschuh explains. The industry is slowly losing its stigma and is becoming a more legitimate market for a wider range of investors and financiers.
Blog images courtesy of http://www.medicaldaily.com/ and
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