NEW YORK: A research published by Arcview Market Research indicates that people in North America spent $53.3 billion on legal, medical, and illicit cannabis in 2016.
The North American legal cannabis market posted $6.7 billion in revenue in 2016, or up 30% from the year before. The illicit market generated 87% of total pot sales, down from 90% in 2015. The data reveals that the illicit market is slowly losing steam as legalization campaigns continue to gain momentum across the country.
The legal market is expected to widen its reach and the research forecasts that growth will accelerate in the beginning of 2018 as adult-use sales ramp up in Canada, California, and Massachusetts along with medical sales in Florida. The market is expected to grow at 27% CAGR to $22.6 billion in 2021.
Troy Dayton, CEO of Arcview Market Research said in a statement, “The enormous amount of existing, if illicit, consumer spending sets cannabis apart from most other major consumer-market investment opportunities throughout history, the cannabis industry doesn’t need to create demand for a new product or innovation – it just needs to move demand for an already widely-popular product into legal channels.”