In the latest edition of The State of Legal Marijuana Markets 5th Edition, written by The ArcView Group, North America’s legal marijuana industry is projected to display a compounded annual growth rate (CAGR) of twenty-seven percent for the next five years. This means that by 2021, adult use profits are likely to exceed medical spending for the first time in history, rising from $970 million dollars to $14.98 billion dollars.
Medical Marijuana vs. Adult Use Marijuana Sales
This trajectory is comparable to the five-year projected growth of the broadband internet industry, another billion-dollar growth industry. We can anticipate that, much like broadband internet access, the legal marijuana sales industry will grow more and more, every year. Combine this information with the knowledge that the legal cannabis industry is even less likely to become obsolete than broadband access, we here at Start Your Collective feel confident that the growth will only continue, as will sales and profit.
Annual Dispensary Sales in Colorado, Washington and Oregon
It is important to note the discrepancy between adult and medical sales in states where both are legal. For comparison, let’s look at the following chart, which shows the large gap in sales per dispensary and by state. The difference is astounding, but is to be expected when you take into consideration startup costs and continuing operating expenses. Legal marijuana is big business and, being so, the field is getting more and more competitive every day.
In addition to this, here are some other interesting facts showcased by the ArcView report.
- 2018 Marijuana sales are expected to increase due to many more states legalizing cannabis, such as California, Massachusetts, Maine and Nevada, as well as all of Canada. Also important is the addition of medical marijuana sales in North Dakota, Arkansas, Florida, Hawaii and Montana.
- Approximately $56 billion was spent on both legal and illegal marijuana in 2016, but only $6.7 billion was legally purchased or taxed.
- Legal marijuana sales gained a thirty-four percent CAGR from 2014-2016. Keeping in mind that we are looking at an annual CAGR of twenty-seven percent, it is vital to capitalize on the market today and find the most plausible and logical way to maximize profit.
- In 2016, the most widely purchased items at Colorado dispensaries were flower, concentrates and edibles.
Support for Cannabis Legalization Grows from State to State
According to a Gallup poll, U.S. support for legal marijuana keeps growing and growing, all across the country. Due to greater exposure and a much more research-based approach to the topic of medical marijuana, many Americans now see the increasing medicinal and potentially healing power of cannabis and think that a shift should be made from illegal to legal. The most recent Pew Research Center poll shows that fifty-seven percent of polled U.S. adults believe that marijuana should be legalized.
As you can see, there is a growing belief that the legal marijuana industry is on the rise. Start Your Collective has the tools you need to start and maintain a successful legal cannabis business. Let us show you how to minimize cost and maximize profit. There is an explosion in the number of brands and products being offered in the legal marijuana industry today. In Colorado alone, where dispensaries provide both adult and medical marijuana, business is booming. Brand growth is off the charts and market shares are remaining constant and are consistently high. The legal cannabis industry is a growth market. Let Start Your Collective show you how you can get in on the ground level and grow your business today.