Thriving Cannabis Industry Expected to Reach $44B by 2020

Cannabis’ true economic potential is beginning to be realized as reported in Marijuana Business Daily’s annual report on Monday. According to the report, if current trends continue, annual revenue from cannabis business will reach up to $44 billion by 2020. The firm’s goal is to diagnose the cannabis industry’s overall contribution to the economy.

According to Marijuana Business Daily’s Factbook, for every dollar spent in the cannabis industry, three additional dollars are realized. This trajectory, they believe, is the ripple that influences economic growth.

“We’re witnessing the emergence of a business that is about to become a massive economic force,” wrote Chris Walsh, managing editor at Marijuana Business Daily. “These figures, which we deem conservative, show not only how important the industry already is to the U.S economy at large, but also how much more important it is about to become.” The report estimates that the cannabis industry’s economic impact will grow from $14 to $17 billion in 2016 to $24 to $44 billion in 2020. Currently, cannabis sales are pegged between $3.5 billion and $4.3 billion—a 17 to 26 percent increase last year’s numbers. The figures are compiled from revenues, licensing fees, taxes and job creation.

Craft cannabis grown in small operations is quickly becoming a thing of the past. MBD’s numbers are a realistic view of the cannabis industry—the typical industry hype associated with cannabis reports is absent. Numbers like this would have been unthinkable a decade ago. At least 16 states are addressing cannabis legalization this year, including recreational efforts in California, Nevada, Vermont and Massachusetts. “These would be huge new markets for the marijuana industry, propelling its growth for years to come,” Walsh said. “At this point, marijuana executives are holding their collective breath and hoping for a big November.”