July 13, 2017 | by Staff
The sale of marijuana in North America grew by an unprecedented 30% to touch the $6.7 billion mark in 2016 at a time when the legal market enters into newer territories in the US and Canada, based on a report by Arcview Market Research. The report also states that North American sales will reach $20.2 billion by 2021, with the annual growth rate projected at 25%.
Colorado headed the list as legal cannabis sales passed $1 billion in just 10 months, according to the state’s Department of Revenue. It’s surprising to note that the legal cannabis industry is growing at a rapid pace, even faster than the dot-com boom. This growth can be compared to the mushrooming of cable television in the 1990s and internet in the 2000s, says Tom Adams, editor-in-chief at Arcview.
As America’s appetite for marijuana, both for recreational and medicinal purposes, continues to grow, it seems that full legalization is inevitable in many other states.
According to Marijuana Business Factbook 2017, the revenue generated from retail cannabis is set to grow exponentially. And even though the actual revenue at the moment lags way behind sales of beer and cigarettes, the demand for cannabis is estimated to be higher than many other products.
Another metric that indicates how huge the industry has become is the employment figures. The cannabis industry now employs between 165,000 to 230,000 part and full-time workers. Putting this in perspective, the number of marijuana employees is a lot more than the number of message therapists and bakers in the United States. It also exceeds the number of dental hygienists
If all goes well for the cannabis industry, it can witness an increase in sales by approximately $40 million annually, according to the report. And this demand is beating out many other products, some of which are listed below.
Snacks and munchies beat Girl Scout cookies at $776 million and premium music streaming services at $2.5 billion The sales for snacks, such as Cheetos and Doritos are $4.9 billion, according to the report. That’s approximately 10% of the estimated demand for legal pot.
The influx in demand can be linked to the legalization of medical and recreational marijuana in many states across the nation. According to Business Insider, 26 nations have legalized cannabis in some form as of January 2017. This implies that for every dollar people spend on national dispensaries, an extra amount of $3 is created in economic benefits throughout the nation.
The report also confirms that the total demand for retail marijuana in the US alone will hit anywhere between $45 billion to $50 billion in 2017. In contrast, the annual sales of ice cream are projected to touch $5.1 billion. It’s hard to believe that people love marijuana more than ice cream, but that’s what the report indicates.
It can be a sick, terrible or stressful day, but within seconds of watching Jim Carrey’s bowl cut, any sane person would be 10 years old again. As human beings, we all love entertainment and most of it is through movies. It’s hard to believe an ordinary guy doing something else with his money and time.
Sales of annual movie tickets in the US is roughly $11.1 billion, cites the report. If the projection for legal pot demand turns out to be true, the film industry might find a tough competitor to compete with.
We all love frozen pizza whether it’s a Freschetta, DiGiorno, Tombstone, or for that matter any other frozen concoction from the top providers in the country. For millions, it’s considered a staple food, although unhealthy. Americans shell out $4.4 billion on frozen pies annually, but it’s still way behind cannabis sales.
Up to 30 million men in the US are affected by erectile dysfunction (ED), states the National Institute of Diabetes and Digestive and Kidney Diseases. And many of them are below the age of 40. This is why there is a surge in demand for erectile dysfunction therapies. The annual sales of Cialis and Viagra, top drugs for reversing ED, is $2.7 billion, says the report, which is way below than cannabis gross sales.
The chart below best describes sales of annual cannabis in the US versus other products and services.
Source: Marijuana Business Daily
The cannabis industry is growing so fast that it can easily outsell many other top products if the government legalizes it nationally. The only caveat to this thriving business is the election of Donald Trump as the President. Many companies are worried because of increased enforcement from the Department of Justice. However, this has not deterred them from forging ahead and their business as usual.
Categories: Cannabis Marketing
Contact or Contribute? Send us an email.