The addition of legal cannabis into the global atmosphere has helped to boost existing markets throughout places like Canada and the U.S. With the market showing itself to be extremely lucrative over the past several years, sales in the North American market have jumped by as much as 33% to almost $10 billion as of the end of 2017. Because of new tax cuts throughout America, the market has been able to flourish through the growing trend of marijuana legalization throughout the country.
According to one of the leading research institutions on cannabis, ArcView, sales for the market are expected to reach as high as $24.5 billion by 2021. This represents a continuous annual growth rate or CAGR of around 28%. There is a large amount of growing interest throughout the market, that is leading to a massive increase in political support for the industry itself. With higher amounts of political backing for the market, it seems like growth in the industry will continue to reach new highs.
One of the largest prospects for the market on cannabis comes from the fact that Canada may be legalizing the substance on a nationwide basis in the not too distant future. If Canada is able to do this, it could represent a large amount of growth through the continuous partnerships between the Canadian and American markets. One of the largest and most influential markets for cannabis comes from that of the new recreational industry throughout California. The addition of the Californian market has added as much as $11 billion to the national marijuana sale estimate for 2018. Estimates for the Californian market also show that it may reach as much as $21 billion individually by the year 2021.
The market on cannabis has also done wonders for the job economy throughout the U.S. and abroad. There are currently around 10,000 licensed marijuana businesses throughout the U.S. which includes everything from cultivation to retailers. Because of this, there are more than 100,000 people currently working in the industry in the U.S. alone. Estimates show that the market could potentially grow to 292,000 by 2021.
The main benefit in the market has come from the states whose economies have been flourishing due to the new market. The market has seen as much as $1 billion in state taxes over the year of 2016 and upwards of $1.5 billion for the 2017 final year. Tick Segerblom, a state senator from Nevada stated that “it’s a great thing because the money was already being spent, it’s just now being taxes. And cops don’t have to waste their time arresting users.” One of the largest issues has been money spent on arresting and housing inmates for marijuana related crimes. Because of the new legality in certain states regarding cannabis, many of these arrests dont have to be made, thus freeing up cops to take on real crime.
The range of products in the marijuana industry has also helped to lead to the boom in the market. The new products and research in the industry has helped to fuel a series of investments in the market, helping to further grow the industry to new heights. As legalization makes its way around the country, it will be interesting to see how the market can continue to grow to its full potential. The hopes are high that the massive amount of growth throughout the market can continue to be sustained through steady investments and research into new and groundbreaking drugs for the benefit of the marijuana industry. Only time will tell how large the market can continue to grow to.