It is essential to consider the total addressable market size of the cannabis industry when considering industry growth. The term $20 by 20″ has an active link to the U.S. Cannabis market. According to a new estimate from cannabis industry analysts, the Brightfield Group, the cannabis industry will reach $20 billion by 2020. This year, specialists have been trying to refine and revise these figures. New Frontier Data, the authority in business intelligence for the cannabis industry, have refined our market projections for adult use and medical markets across the country as part of a 2017 report, The Cannabis Industry Annual Report: 2017 Legal Marijuana Outlook. We forecast the legal cannabis market to grow to $24.1 billion by 2025 with a compound annual growth rate of 16%.
RBC Capital Markets, an investment bank under the Royal Bank of Canada, issued a reminder to customers laying out the fast development of the U.S. weed sector. The notice, created by Nik Modi, indicates how cannabis sales in the U.S. are making strides on alcohol and wine deals. Once more, using quick and continued development in the coming decade.
The current U.S. market (albeit both legal and illegal sales of cannabis) is fast gaining ground on the other monster consumer product markets such spirits, wine, cigarettes, and beer. Interestingly, ‘it’s unclear what proportion of the $50 billion is made up by illegal sales.
The present U.S. cannabis market is quick making progress on most top-rated consumer products such as alcohol. Surprisingly, black-market sales have made it hard to predict whether the $50 billion comprises only of legal sales.
So why is the cannabis industry predicted to boom?
Firstly, it’s merely the public opinion of the plant. Over recent years, Americans have turned out to support the legalization of both medical and recreational weed highly. During recent years, the US polls have favored the legalization of cannabis. Recent survey results from Gallup show that 66% of Americans are presently supporting the legalization of cannabis. To place this in context, a more significant number of individuals support cannabis legalization than gay marriage! What is extremely noteworthy, was that most of Republicans were in support. 51% of the Reds were in favor of legalization with 51% of Americans of age 55 and above highly showing their support for approval. 71% of Democrats were in support, while 78% of middle age voters want cannabis legal at the Federal Level. It is just a short time before Congress agree to the desire of the general population.
The Pew Research Center discovered that advocates are based on age groups, even though it has been booming among all age groups over the last couple of years. Undoubtfully, most youths accept that it ought to be legalized, and the distinction in rate is viable against older age groups. This is normal given the substantial advertising efforts to remove the stigma surrounding cannabis. As indicated by New Frontier Data, by 2025, most states will implement laws accepting the use of marijuana, which will further increase the projected growth rate. Many states have legalization on their ballets to pass recreational or medical cannabis laws, including New Jersey, New York, and New Hampshire.