The US Legal Marijuana Market is Growing Fast
The North American Marijuana Market posted $6.7-B in revenue in Y 2016, + 30% from Y 2015, that according to a new report from Arcview Market Research, a publisher of Cannabis market research.
Dubbed the “Green Rush” it shows no sign of a slow down.
Analysts projects sales will grow at a compound annual growth rate of 25% through Y 2021, when the North American market is expected to mark $20.2-B +.
“The only consumer industry categories I’ve seen reach $5 billion in annual spending and then post anything like 25% compound annual growth in the next five years are cable television (19%) in the 1990’s and the broadband internet (29%) in the 2000’s,” Tom Adams of Arcview Market Research said.
“What broadband changed for the Internet is a remarkable parallel to legalization for Cannabis,” Mr. Adams said. “We saw what had been a $5-B industry like this one in North America take off at that point on new growth spurts.”
In Colorado, Washington, and Oregon, where recreational use was legal before Y 2016, consumer spending on Cannabis was + 62% between Y 2015 and September 2016, according to the data.
This year 7 US states legalized Cannabis in some form on Election Day.
California became the biggest with the passage of Proposition 64, the West Coast is now a legal enclave for recreational Marijuana.
The sudden popularity of alternative ingestion methods, such as marijuana-laced topicals, sprays, and edibles, fueled growth. Consumers who would never smoke Marijuana are finding it in other products that offer a wide array of taste, strength, and experience.
“It’s one of the major reasons that people are going to leave the underground market and go to above ground market. It’s about variety,” Mr. Dayton said. “You just can’t get these products on the underground market.”
The Green Rush business could mark 25% growth Y-Y through Y 2021, as new recreational markets come online, and he predicts that a great number of countries will legalize Marijuana in the next 10 to 15 years.
Here at HeffX-LTN, when we look at the domestic and global markets we anticipate consistent growth long term for the legal Marijuana industry.