NEW REPORT: U.S. Adult Use Marijuana Sales Up 184%
|New Frontier & ArcView collaborate on most comprehensive report ever|
January 29, 2016
Media Contact: Gretchen Gailey
(202) 489-3821| firstname.lastname@example.org
Scottsdale, AZ – New Frontier, the cannabis Big Data and analytics authority in partnership with ArcView Market Research, the leading publisher of cannabis market projections and information, has released the executive summary of the 4th edition of the State of Legal Marijuana Markets, which shows that the legal cannabis industry is one of the fastest growing industries in America with a compound annual growth rate of 30%. The official 2015 ArcView market estimate is $5.4 billion, up from the new estimate from 2014 of $4.6 billion. This was fueled primarily by explosive growth in adult use market sales, which grew from $351 million in 2014 to $998 million, a 184% year over year increase. Additional analysis will be presented by New Frontier and ArcView at ArcView’s quarterly gathering of cannabis investors in Scottsdale, Arizona on February 1st.
“It is undeniable that cannabis is one of the fastest growing industry in the U.S. Twenty-three states already permit medical cannabis use, along with four states and the District of Columbia allowing full adult use. With nearly a dozen states debating changes to their cannabis laws in the coming year, 2016 will be the tipping point in which a majority of U.S. states transition from cannabis prohibition to some form of regulated legal market,” said New Frontier CEO and Founder Giadha DeCarcer.
“Many in the business and financial sector have taken a ‘wait and see’ approach to the legal cannabis industry. The new data confirms what pioneer investors and entrepreneurs suspected. Legalization of cannabis is one of greatest business opportunities of our time and it’s still early enough to see huge growth,” said ArcView Group CEO Troy Dayton.
Demand is expected to remain strong in 2016 with a 25% increase over 2015 to $6.7 billion. By 2020, legal market sales will grow to $21.8 billion, with adult use sales comprising more than half (53%) of the total market.
This report represents a historic team effort to raise the bar for market information in the cannabis industry by marrying ArcView’s years of experience and nuanced understanding of these markets with New Frontier’s big data and analytics capacity.
The State of Legal Marijuana Markets 4th Edition combines in-depth industry understanding with rigorous analytics and vetted data to provide the most comprehensive and authoritative report in the cannabis market today. The full report will explore in detail the evolving national perceptions of cannabis and how social and demographic changes in the U.S. are fueling the rapid increase in support for legalization. It will also explore ways in which the social and economic outcomes of legalization are being weighed against the costs and consequences of prohibition.
Sales, Growth & Forecasts:
– The industry’s continued expansion is matched by equally strong growth in popular support for cannabis legalization nationally. According to Gallup, 58% of Americans now support legalization of cannabis for adult use, up from 36% in 2005; a separate poll by Harris found 81% of Americans support legalization for medical use.
– ArcView’s Compound Annual Growth Rate between 2014 and 2020 for legal, medical and adult use sales is 30%.
– Legal sales have been a boon for state coffers in markets like Colorado, where the state was expected to generate $135 million in cannabis taxes and licenses fees between in 2015, a 77% increase over the $76 million the state raised in 2014.
– In Washington, the first year of legal sales generated $70 million in tax revenue off sales of $257 million, a significant windfall even after product shortages and pricing instability plagued the program during its early months.
– Seven states will be voting to allow adult use, including California, Nevada, and Arizona in the southwest, and Massachusetts, Maine, Rhode Island and Vermont in the north east. Importantly, Vermont is poised to be the first state to legalize cannabis through the legislature.
– Additionally, four states – Florida, Ohio, Missouri and Pennsylvania – are best positioned to advance medical laws in 2016, which would significantly expand medical marijuana access in the eastern half of the U.S.