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.


4 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.

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.

Debt Fund Launched for Illinois MMJ Startups

Entrepreneurs looking to enter Illinois’ medical marijuana industry could get help with one of the [click to continue...]

FL Company Nabs $500K Funding Commitment

FloridaMedicalMarijuana

A Florida company has secured up to $500,000 in investments to fuel its business interests [click to continue...]

$38.5M Potential Tax Haul From Legalized Cannabis in Oregon

Cannabis legalization in Oregon could generate $38.5 million in taxes for the state during the [click to continue...]

Seattle Dispensaries, MMJ Growers Could Get Reprieve

seattle

Medical marijuana businesses in Seattle could get until 2016 to obtain licenses with the state. [click to continue...]

63 License Applications in Las Vegas

Las Vegas received 63 applications for medical cannabis business licenses by Wednesday’s deadline, according to [click to continue...]

PTSD Study Could Move Forward, With Lead Researcher

Dr. Suzanne Sisley

A federally approved project to research the use of marijuana for treating post-traumatic stress disorder [click to continue...]

Minnesota Names Medical Cannabis Czar

Minnesota’s medical marijuana program now has a leader. Michelle Larson, who held various executive roles [click to continue...]

Moody’s: WA Rec Sales Could Fall Short of Projections

Initial recreational cannabis sales in Washington State could fall “well short” of expectations due to [click to continue...]

Oregon Recreational Marijuana Bill Approved for Ballot

Oregonballotmeasure

Oregon voters will get another shot at legalizing recreational marijuana. The state announced Tuesday that [click to continue...]

Infused Products, Extracts Guidelines Released

The American Herbal Products Association (AHPA) released business guidelines today tied to the manufacturing, packaging, [click to continue...]

IL Hospital Voices Interest in Dispensing Marijuana

SwedishHospital

A hospital in Chicago has gone public with its desire to dispense medical cannabis. Executives [click to continue...]

Bid to Overturn San Jose MMJ Regs Falls Short

A last-ditch effort to block restrictive regulations on medical cannabis businesses in San Jose, California, [click to continue...]

Poll Shows Views on CO’s Rec Program Evolving

Colorado residents still favor the state’s recreational marijuana law, however their support has dropped slightly [click to continue...]

VT Moves Forward With Marijuana Legalization Study

Image for marijuana studies

Rand Corp. is set to begin a study on the possible impacts of marijuana legislation [click to continue...]