April 9, 2014

New Forecast: U.S. MMJ and Recreational Cannabis Sales to Hit $8 Billion by 2018

NEWUSCannabisRetailSalesProjections284
By Anne Holland

U.S. retail cannabis sales will rise more than five-fold over the next five years, from an estimated $2.2-$2.6 billion in 2014 to $7.4-8.2 billion in 2018, according to new financial data released today in the 2014 edition of the Marijuana Business Factbook.

Although the 2014 estimated sales are right in line with predictions from last year’s edition of the Factbook, the 2018 forecast has risen by roughly $2 billion. This lift is largely due to the impact of last August’s Cole Memorandum wherein the federal Department of Justice stated it would take a hands-off approach to the cannabis industry as long as companies obey local laws and state regulations and oversight are strict.

“You could call it the $2 billion memo,” remarked Chris Walsh, editor at CannaBusiness Media. (Note: CannaBusiness Media is the publisher of both the Marijuana Business Factbook and Marijuana Business Daily.)

“This total is conservative – the reality of retail sales could be larger,” Walsh continued. “Nor does it include wholesale cannabis sales, or the billions of dollars in ancillary cannabusiness revenues such as growing equipment, real estate, legal fees, testing labs, paraphernalia, etc.”

The sales estimates include both medical marijuana and recreational cannabis sales, and account for additional states establishing and launching cannabis sales programs during the time span covered by the forecast. These predictions assume 4-5 new recreational states and 2-3 medical cannabis states will have fully-functional programs by 2018.

Recreational cannabis sales are only legal in two states currently. According to estimates, 2018 is anticipated to be the first year that recreational sales match or even overtake MMJ sales in the U.S.

This data does not include black market sales. However, other research indicates that despite prior industry fears, the majority of cannabis consumers are willing to switch from black market providers when cannabis is legally available in their regions.

The U.S. black market is currently estimated to be in the $40 billion range. Thus, the legal marketplace has significant potential beyond 2018.

rechandbookhorizontal300 New Forecast: U.S. MMJ and Recreational Cannabis Sales to Hit $8 Billion by 2018Very few MMJ states release data on cannabis sales (or even track it.) Only a tiny slice of cannabusinesses release their financials for public scrutiny. The editors of the Marijuana Business Factbook 2014 used a wide variety of methodologies to create the sales forecasts. Sources include exclusive surveys of both cannabis consumers and cannabusiness executives, as well as statistics and political analysis reported in Marijuana Business Daily and its sister publication, CannaBusiness Magazine.


5 Comments:

  1. …interesting that the forecast does not include industrial hemp. I would think that the prediction could easily double, considering the multi-faceted uses of iHemp. The use of hemp as a biofuel fuel alone deserves serious consideration.

    But this is indeed a great start and as the article states, it may be a conservative estimate.

    All systems go and we should also be sure to vote for those candidates that are at least in alignment with the reality of medical marijuana and industrial hemp…

  2. Subscribe to this website, they are impartial and very informative.When they have links , check them out, the more you no is a good thing. luv ya

  3. Hemp will be very important for this vertical’s forecast. There are companies out there such as Stevia Corp. who are at the forefront of this and will soon be spearheading health food/care products with respect to hemp.

    Also, it should be noted that the CBD is most definately extractable and will help the medical industry.

  4. $8.2 Billion?
    How ’bout $8 for the folks making this happen right now?
    https://www.youtube.com/watch?v=dwA7lmfS1xU
    Thanks.

  5. Steven Kellerman

    Has anyone given a thought to as what the New York state market would be?? I have done some preliminary work and have a figure of $1.06Billion just in the MMJ side! email me for my report if you would like to read it!

Post Your Comment:


Please note:
Comments are moderated by our editors who do their best to approve comments ASAP. As MMJ Business Daily is focused on business, we approve comments that are specifically relevant to industry professionals. General opinions and questions about cannabis may not be posted.

Recreational Marijuana Good for Oregon’s Budget, Researcher Says

OregonMedicalMarijuana

Legalizing recreational marijuana in Oregon would represent a “net win” for the state from a [click to continue...]

1st Connecticut Dispensary Opens

The first of six medical marijuana dispensaries formally opened in Connecticut on Wednesday night. The [click to continue...]

Canadian Cultivation Company’s Stock to Debut Monday

Bedrocan

A Canadian company is set to become just the second licensed medical cannabis cultivation business [click to continue...]

No Compensation for California Growers Under Revised Bill

The California State Assembly keeps going in circles when it comes to medical marijuana, and [click to continue...]

Poll: Support for Rec Marijuana Erodes in Alaska

Marijuana advocates in Alaska may be in for a disappointment come November. The latest survey [click to continue...]

Colorado Edibles Companies Expanding Amid Sky-High Demand

edibles2

Edibles manufacturers in Colorado are aggressively boosting production to meet overwhelming demand for infused candies, [click to continue...]

Hundreds Apply for Nevada MMJ Business Licenses

Entrepreneurs submitted nearly 400 applications for medical marijuana business licenses in Nevada by Monday’s deadline, [click to continue...]

Oklahoma Legalization Bid Stalls

Despite the best efforts of cannabis activists in Oklahoma, a proposal to legalize medical marijuana [click to continue...]

Canadian Court Clears Way for Infused Products

Flag_of_Canada.svg

A high court in Canada has possibly opened the door to a new market for [click to continue...]

Arkansas Legalization Proposals Gain Steam

Arkansas could become one of the first Southern states to legalize medical or recreational marijuana [click to continue...]

Colombian President Backs MMJ Legalization

Santos

Medical marijuana is starting to gain traction across the globe, particularly in South America. On [click to continue...]

58 Dispensary Inspections, 2 Closures in Oregon

Oregon health inspectors have made 58 surprise visits to medical marijuana dispensaries since late May, [click to continue...]

Marijuana Business Media Adds Reporter

JohnSchroyer

Marijuana Business Media, the parent company of Marijuana Business Daily, announced today that reporter John [click to continue...]

Massachusetts Company’s Dispensary Licenses in Jeopardy

A company’s licenses to operate two medical marijuana dispensaries in Massachusetts are in jeopardy after [click to continue...]