Legal Weed Keeps Dollars Rolling In

Posted: Jan 4 2017, 12:51pm CST | by , in Also on the Geek Mind


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Legal Weed Keeps Dollars Rolling In
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Legal weed is proving to be extremely big business in North America.The market posted $6.7 billion in revenue in 2016, up some 30% from 2015, according to a report from Arcview Market Research, a leading publisher of cannabis market research.

The research firm projects that sales will continue to grow at a compound annual growth rate of 25% through 2021, when the market will top $20.2 billion.

"The only consumer industry categories I've seen reach $5 billion in annual spending and then post anything like 25% compound annual growth in the next five years are cable television (19%) in the 1990s and the broadband internet (29%) in the 2000s," Tom Adams, editor in chief of Arcview Market Research, said in a statement.

Adams says that the cannabis industry reminds him of what dial-up internet used to do.

"What broadband changed for the internet was a kind of remarkable parallel to legalization for cannabis," Adams told Business Insider. "We saw what had been a $5 billion industry — like this one — in North America take off at that point on new growth spurts."

As for cannabis, Arcview CEO Troy Dayton credits legalization with helping the market and bringing in new users.

In areas where cannabis was legal before 2016, such as Colorado, Washington, and Oregon, spending was up 62% between September 2015 and September 2016.

Still, seven states legalized cannabis in some form on Election Day, including California, which is the sixth-largest economy in the world. The West Coast in general is now a haven for recreational pot.

Dayton says that different ingestion methods have also made it more popular, including weed-laced topicals, sprays, and edibles.

"It's one of the major reasons that people are going to leave the underground market to go to the aboveground market. It's about variety," Dayton told Business Insider. "You just can't get these products on the underground market."

Of course, it is predicted that many more countries and many more states will legalize pot in the coming years.

"So when you look at the global market, the world has never seen something that will have such consistent growth over such a long period of time as the cannabis industry," Dayton said.

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<a href="/latest_stories/all/all/46" rel="author">Noel Diem</a>
Noel passion is to write about geek culture.




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