A new report has predicted another jump in total legal cannabis sales in the United States, and the industry is projected to exceed expectations by 2025.
The report by New Frontier Data found that annual sales from current legal state markets are projected to grow at a compound annual growth rate (CAGR) of 16 percent and reach more than $29 billion by 2025. In 2017, New Frontier Data predicted legal sales in the U.S. would reach $24 billion by 2025. The firm believes the rapid expansion of legalization and the change in views on cannabis in general have had an impact on the rising numbers.
“The industry expansion is fueled by convergent forces, including: the addition of new legal markets as more states reform their cannabis laws, sustained growth in demand in legal states as consumers make the transition from the unregulated market to the legal one, and greater diversification of cannabis use for medical and wellness uses based on growing scientific affirmation of cannabis’ expansive therapeutic value,” the authors wrote.
New Frontier Data predicts that California, Washington, Colorado, Florida, Michigan, Oregon and Massachusetts will be the largest state markets for legal marijuana by 2020. California is already being recognized as one of the biggest markets in the whole world.
The report also estimates that the number of cannabis users will continue to rise as well. The report estimates that there are 34.8 million U.S. adults that consume cannabis at least once a year, regardless of whether it came from a legal source or not. Of the total cannabis users, 36 percent said they use cannabis daily, while 59 percent use cannabis at least once a week.
A recent Nielsen study found there has been a significant increase in cannabis brands over the last four years, with findings showing 166 cannabis brands in 2014 jumping to an astounding 2,650 brands in 2018.