IN 2018, THE MARKET OF MARIJUANA IN THE UNITED STATES WAS LARGER THAN WINE, ORGANIC FOOD AND CRAFT BEER July 4, 2018 – Posted in: Marijuana Facts, Marijuana Lifestyle, Marijuana News
In 2018, the sales of marijuana for recreational purposes could beat the sales of marijuana for medical purposes, according to a new information from Marijuana Business Daily.
In 2015, Marijuana Business Daily estimates that the retail sales combination of medical and recreational marijuana will be within $3.5 billion and $4.2 billion by the end of 2016. That would mean the increment of sales from 17% to 26%. Recreational marijuana will make $1.4 billion to $1.6 billion in sales by the end of 2016, and Marijuana Business Daily project sales to rise to $2.6-$3.8 billion by 2018. Also, the sales of medical marijuana are projected to increase and it’s only expected to be between $2.3 billion and $4.0 billion by 2018.
To ensure this is in a proper view, in 2015 legal cannabis made more sales than Girl Scout cookies. The total number of cannabis market in the United States, with illegal sales included, is assumed to be within the range of $40 billion and $45 billion. This means the cannabis market is larger than wine, organic food, and craft beer.
Marijuana Business Daily also predicts that the ripple effect of marijuana retail sales in the United States economy is to be within the range of $14 billion and $17.3 billion in 2016 and will increase to $44 billion by 2020.
“Overall, for each dollar spent or earned by cannabis companies, an additional $3 in economic benefit will be realized. For example, a cannabis dispensary or store makes a sale of $100. The business then uses a portion of that money to pay an employee, who in turn uses a portion of that money to buy groceries at the local grocer, and so on – a process that creates a ripple of economic value, most of which remains in the community,” said the report.
The MBD also realized that although there’s a lot of money in the cannabis industry, it is not certain that all cannabis business will bring profits. Only 57 percent of open cultivators’ says that they are breaking in comparison to the 80 percent indoor growers. The always changing rules are also making the compliance costs to increase drastically.
When it has to do with starting a cannabis business, the small player days are over. The fees charged for getting new licenses have pushed businesses to hire some experts. Cultivation experts, lawyers, and consultants become expensive. If the license is gotten, builders, security professionals, and real estate experts get involved. It is common for a marijuana business to spend a lot of money. “Cannabis is and will continue to be one of the most highly regulated industries in the world, and the price to pay is hefty,” said the report.
However, this report noted that this figures could be changed if California decides to adjust the way its market regulates. California does not track the medical cannabis industries in the state, even with the fact that the state controls one of the biggest cannabis markets in the country. Since it’s so large, any alteration made will affect the whole industry.