Legal Cannabis Sales
If the predictions of a new report published by market analysts are right, the legal cannabis sales are on pace for explosive growth—and huge profits—over the next few years. To be more precise, experts are now saying that legal cannabis sales could bring in right around $22 billion by the year 2020.
The predictions come as part of the fourth edition of “The State of Legal Marijuana Markets,” which was published jointly by ArcView Market Research and New Frontier.
According to the report, the legal marijuana market has experienced rapid growth over the past couple years.
In 2014, the legal marijuana market pulled in a total of $4.57 billion, 92% of which came from medical marijuana sales while only 8% came from recreational sales.
The one year period between 2014 and 2015 sawan184% growth in legal recreational sales, to the point that recreational sales in 2015 brought in just under a billion dollars.
After analyzing these and other related stats and trends, the market analysts responsible for the new report forecast that by 2020, the legal cannabis market can expect to see a more even split between medical and recreational sales.
Of the $21.8 billion the marijuana market is projected to make in 2020, experts predict that 53% will come from recreational sales and 47% will come from medical sales.
Attempting to summarize the various findings of the report, ArcView CEO Troy Dayton wrote that the “legalization of cannabis is one of the greatest business opportunities of our time.”
He also claimed that “it’s still early enough to see huge growth” as the industry moves into the future.
The report highlighted what it sees as the most important factors that will affect the legal cannabis market moving forward.
These factors include:
- congressional action
- state legalization
- price wars and competition within the industry
- the next president’s perspective on marijuana
- new regulations
- the impact of new technologies
- increasing industry sophistication and business intelligence
- energy use
- international debates around marijuana legalization.