Fact 005: Legal Marijuana Is The Fastest Growing Industry In The U.S.
Legal Marijuana is the fastest growing industry in the U.S. and should the trend to legalize it in all 50 states be successful, marijuana could become bigger than the food industry.
According to researchers from the cannabis industry investment and research firm in Oakland, the U.S. market for legal cannabis increased by 74% in 2014 – from $1.5 billion in 2013 to $2.7 billion in 2014.
The Arc View Group carried out a survey on hundreds of recreational and medical marijuana retailers in the U.S. where sales of marijuana are legal, along with ancillary business operators and the plant’s independent cultivators, in the space of 7 months during 2013 and 2014. The group also acquired data from nonprofit organizations, private companies and state agencies in the plant industry for a very detailed look at the market arena.
The Arc View Group’s CEO and the publisher of the 3rd edition of the State of Legal Marijuana Markets, Troy Dayton, said in the executive summary of the report that, “In the last year, the rise of the cannabis industry went from an interesting cocktail conversation to being taken seriously as the fastest growing industry in America. At this point, it is hard to imagine that any serious businessperson who is paying attention hasn’t spent some time thinking about the possibilities in this market.” This report also projected a very strong year for legal marijuana and predicts 32% increment in the market. As Dayton said, cannabis is top spot when compared to other fast-growing industries.
In the next 5 years, marijuana is projected to continue growing, with ArcView projecting that 15 more states will support the recreational use of marijuana and 2 more states will support medical marijuana. As it stands, 10 states have already started considering legalizing marijuana for recreational purposes in the next few years through state legislatures or ballot measures.
This report also predicted that, by 2019, all the state-legal marijuana markets will combine to have a common market that will be worth at least $11 billion yearly.
The report also came with some interesting trends about marijuana from around the nation. The biggest legal cannabis market in the United States is still California, at $1.4 billion. Arizona is still the quickest-growing market of marijuana, expanding to $200 million, more than $120 million that it was in 2014. Medicinal marijuana has already been legalized in California and Arizona amid its legalization for recreational purposes may appear on this year’s ballots in both states.
Over 1.5 million shoppers bought legal marijuana from any of the dispensaries, either for recreational or medicinal use, in 2014. Five states now have marijuana markets that are over $100 million, and in Washington and Colorado – the very first states to have retail marijuana shops in the United States – consumers purchased $370 million products of marijuana in 2014.
The large growth ability of the industry seems to be limited by the likelihood of the states to reject the amendment of their drug laws. The reports predicted a marijuana industry that would be of more values than the whole organic food industry – this will happen only if all the 50 states legalize the recreational use of marijuana. The market value of these states approving marijuana would be over $36.8 billion – which is $3 billion greater than the organic food industry.