Those who live in legal cannabis states know that it’s safe to assume that the industry is raking in lots of dough. Whether we’re talking about medical or recreational cannabis, when you step into an establishment that has cannabis for sale, you’re likely walking into a burgeoning business with cash to spare. So it is not shocking that New Frontier Data, a cannabis data organization known for its insightful information, is continuing to report substantial growth in the cannabis sector.
According to a recent report from New Frontier Data, the cannabis industry is projected to continue producing a lot of money for cannabis business owners and investors. It will generate plenty of tax revenue, too. The report notes the following projections:
- Medical cannabis sales are predicted to increase $5.3 billion in 2017.
- In 2017, medical cannabis sales were estimated to make up 67 percent of total cannabis sales.
- Medical sales in currently legal states are estimated to grow to $13.2 billion by 2025.
- By 2025, medical sales will account for 55 percent of all cannabis sales.
- Recreational cannabis sales in 2017 are predicted to be around $2.6 billion.
- By 2025, recreational cannabis sales will increase to $10.9 billion.
- California legal cannabis sales are forecast to be $2.8 billion in 2017.
- By 2025, legal cannabis sales in California will reach $6.6 billion.
- For legal cannabis sales in California, a compound annual growth rate of 12 percent is predicted over the next eight years.
Considering that state governments all over the country are struggling to balance budgets, the additional tax revenue will be a welcomed addition to many states’ bottom lines.
Giadha Aguirre De Carcer, founder and CEO of New Frontier Data, had plenty to say about the incoming cannabis tax revenue. “During this tough economy states are looking for any way to close their budget shortfalls and it appears that cannabis may hold an answer for them,” Aguirre De Carcer said in a statement. “New Frontier Data looked at the potential revenues that could be generated from state cannabis taxes and found that in this year alone, states could raise nearly $750 million and triple that number by 2020. These revenues will have a meaningful impact on state programs and provide governors with much needed breathing room in their budgets.”
With the federal regulation of cannabis up in the air under the current administration, data like this is invaluable. Whether or not you personally consume cannabis, or approve of it, it’s hard to argue with all of the extra revenue that the industry is bringing in. Cannabis tax revenue could be the answer to so many of our country’s social ills. Hopefully the powers that be will continue to allow this profitable industry to thrive.