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U.S. adult-use marijuana sales rose 184% in the past year, according to a new report from New Frontier and ArcView Market Research.
ArcView’s estimate for the legal cannabis industry is $5.4 billion for 2015, a big jump from 2014′s $4.6 billion. Most of that increase is due to the incredible growth of recreational marijuana sales which grew from $351 million in 2014 to $998 million in 2015, a 184% increase.
“It is undeniable that cannabis is one of the fastest growing industry in the U.S. Twenty-three states already permit medical cannabis use, along with four states and the District of Columbia allowing full adult use. With nearly a dozen states debating changes to their cannabis laws in the coming year, 2016 will be the tipping point in which a majority of U.S. states transition from cannabis prohibition to some form of regulated legal market,” said New Frontier CEO and Founder Giadha DeCarcer.
Part of the growth can be attributed to American’s quickly changing attitudes toward pot. In 2005, only 36% of Americans supported legalization, now 58% approve according to a Gallup poll. ArcView believes that the compound annual growth rate for marijuana sales including medical and recreational between 2014 and 2020 will be 30%.
Colorado was the first state to take the plunge and reaped $135 million in cannabis taxes and licensing fee in 2015, a 77 % increase over 2014. Even in a state like Washington that was beset with problems as its program was initiated managed to generate $70 million in tax revenues in its first year. Those tax dollars has prompted seven more states to vote on recreational marijuana laws this year.
“Many in the business and financial sector have taken a ‘wait and see’ approach to the legal cannabis industry. The new data confirms what pioneer investors and entrepreneurs suspected. Legalization of cannabis is one of greatest business opportunities of our time and it’s still early enough to see huge growth,” said ArcView Group CEO Troy Dayton.
Looking ahead, New Frontier and ArcView belive there will be more competition on price as new growers enter the market. They also think there will be an increased emphasis on compliance and regulation. Since almost every state varies widely in its own particular rules, staying within the rules is becoming big business for ancillary cannabis companies.
“Many in the business and financial sector have taken a ‘wait and see’ approach to the legal cannabis industry. The new data confirms what pioneer investors and entrepreneurs suspected. Legalization of cannabis is one of greatest business opportunities of our time and it’s still early enough to see huge growth,” said ArcView Group CEO Troy Dayton.
Looking ahead, New Frontier and ArcView belive there will be more competition on price as new growers enter the market. They also think there will be an increased emphasis on compliance and regulation. Since almost every state varies widely in its own particular rules, staying within the rules is becoming big business for ancillary cannabis companies.
