NEW YORK: The legal cannabis market was worth $6.6 billion in 2016 and is forecast to grow to $24.1 billion by 2025, registering a compound annual growth rate of 16 percent, according to a report by New Frontier Data.
By segment, the medical cannabis market was worth $4.7 billion in 2016 and is expected to grow to $13.3 billion by 2025. Recreational cannabis sales throughout the same period are expected to grow at a 21 percent CAGR, from $1.9 billion to $10.9 billion. The continuous validation of cannabis products for both medical and recreational use is a key factor contributing to the progress made in this industry. On November 8th, 2016, California has passed California Proposition 64 by a vote of 57.13% for and 42.87% against, allowing individuals in California to use and grow cannabis for personal use.
California’s new recreational cannabis laws were officially implemented on January 1st, 2018. New Frontier Data CEO, Giadha Aguirre De Carcer, commented on California’s potential market growth, “California offers the perfect example of why it is so important to understand trends in consumer behavior. The state’s legal (cannabis) industry is forecast to grow from $2.8 billion in 2017 to $5.6 billion in 2020. That spending will be increasingly directed at products and retailers who understand and serve the market’s evolving tastes and preferences. The market is changing, and the most successful operators will be those who adapt most quickly to the change.”