DISTRICT OF COLUMBIA: New Frontier Data, a leading cannabis industry business intelligence firm, has refined its market projections for adult use and medical markets across the country, according to The Cannabis Industry Annual Report: 2017 Legal Marijuana Outlook. The firm forecast the legal cannabis market to grow to $24.1 billion by 2025 with a compound annual growth rate of 16%.
“As we continue to gain better access and visibility into various state’s markets, as well as continue to increase the amount and diversity of data collected, we are able to refine our market projections and hone in on where the cannabis industry is going. That said, we continue to see numerous challenges to data collection efforts in the cannabis industry, particularly due to the fragmented and unstandardized data available from both public and private institutions. Rigorous data collection protocols and reporting standards must be a priority to ensure the growth and comprehensive understanding of this industry.
Over the course of refining market projections, there have been important lessons learned from each state’s market performance, the industry’s nuanced developments, and from the increased amount of data gathered from state regulatory agencies.
The company applauds, in particular, the work of Washington state which has set the gold standard in transparency by making all the data collected by its seed-to-sale system publicly available. “This level of transparency is enormously valuable as it enables all stakeholders across the industry, including operators, investors, regulators and policymakers to have a quantifiable view into this highly dynamic industry,” said New Frontier CEO & Founder Giadha Aguirre De Carcer.
Based on these revised projections, the legal cannabis market was worth an estimated $6.6 billion in 2016, and is projected to grow at a compound annual growth rate (CAGR) of 16% to reach more than $24 billion by 2025. The medical market is projected to grow at 12% CAGR through 2025, growing from $4.7 billion in 2016 to an estimated $13.3 billion in 2025. During the same period, adult use sales are projected to grow at a 21% CAGR, from $1.9 billion to $10.9 billion (through projections based solely on the markets having passed medical and adult use legalization initiatives as of January 2017, but not including assumptions for additional states which may yet pass legalization measures before 2025).