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New Legal Cannabis States Could Make $6 Billion in by 2025

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Adding to the long list of states that have already legalized recreational cannabis, Arizona, Montana, New Jersey and South Dakota are next in line to prepare the foundation for their respective cannabis industries. Early predictions of these states’ success shows that the combined value of these state’s programs could amount to $6 billion by 2025.

Roy Bingham, co-founder of data analytics firm BDSA, announced these approximations at the Insurance Journal’s 2020 Insuring Cannabis Summit. Bingham spoke at one of the panels, entitled “State of the Cannabis Market: Looking Forward to 2021—Beyond COVID & the Elections.” “And that’s just the direct impact,” Bingham said. “That’s not the indirect impact of the fact that New York will follow suit with New Jersey, and Connecticut.” He also added that southern states are expected to follow in these recently legalized states in the future.

“And so, we’re going to see an industry in the US about $16.1 billion in consumer sales this year, up from about $12.1 billion last year,” Bingham said. “And then, when we think forward to 2021, it’s a continuation of that trend. Our current projection’s about $19.5 billion. But I think we’re low, actually, because during the COVID era, what we’ve seen is a significant acceleration of sales in the mature states.”

In addition to all the newly legalized states, the states that already have established legal industries will only continue to grow. According to Insurance Journal, Colorado is growing at over 20 percent, Oregon at over 30 percent, and Arizona at 48 percent over initial predictions. “So, we now have adult use states, which has just expanded now by three more,” Bingham said. “We get more than 15 adult use states. We’re talking about 33 or 35 percent of the adults in those states have consumed cannabis in the last six months.”

As legal cannabis continues to expand across the US, it will generate even more revenue for communities in need of a boost in the wake of the COVID pandemic.

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