The marijuana industry is rapidly growing and it’s no surprise that it has emerged as a fan favorite industry for investors. In the last year, a greater number of marijuana stocks with a market cap above $200 million have at least doubled in value. A key player towards the industry’s success is the changing of perception towards the marijuana. National pollster Gallup, which has periodically surveyed the American public over a five-decade period, has seen favorability toward the idea of legalizing pot nationwide for adult use advanced from 25% in 1995 to record highs at 60% in 2016. The pro-legalization theory predicts that if favorability toward marijuana keeps advancing, politicians will be forced to revise marijuana’s scheduling at the federal level or run the risk of being voted out of office.
An industry report from the investment firm Cowen & Co., suggests the marijuana industry has the potential to grow by 36% yearly through 2021. The report forecasts that legal pot sales in the U.S. could see $50 billion by 2026. Though, a new report released by GreenWave Advisors is showing an even more aggressive forecast than Cowen & Co.’s. The headline figure in GreenWave’s report reads $30.3 billion in legal U.S. sales anticipated by 2021. Keep in mind, legal U.S. pot sales advanced by nearly 35% in 2016 to $6.5 billion, with $1.8 billion in reported recreational-marijuana sales and a estimated $4.7 billion coming from medical cannabis sales. Predicting $30.3 billion in sales by 2021 suggests a compound annual growth rate of 36.1% over the next five years.
Greenwave surveyed every single state in the United States. By 2021, GreenWave is predicting that all states in the U.S. will have legalized marijuana whether it’s medical or recreational. Altogether, 21 states are anticipated to proceed with medical marijuana only by then, and 29 will have legalized adult-use and medical marijuana. The report indicates $17.9 billion in medical pot sales if all states approved, suggesting 281% aggregate growth over the next five years, while recreational marijuana is anticipated to amount for the remaining $13.4 billion, signifying 644% growth over five years.
Data as of 2016 displays there to be nearly 26.3 million medical-cannabis patients spending an average of $3,200 a year. Also, approximately 30 million adults in the recreational market are predicted to spend $1,500 this year.