Cannabis Sales On The Rise In North America

NEW YORK: The global legal cannabis market was valued at $14.3 billion in 2016 and is projected to grow at a CAGR of 21.1% between 2017 to 2024, while reaching a value of $63.5 billion by 2024, according to a report by Ameri Research.

The market is going through a period of robust growth because of increasing legalization and decriminalization of cannabis products across North America. The report specifies that legalization trends are moving beyond the U.S. region.

Latest Arcview/BDS Data: Cannabis Consumer Spending Outpaces Industry Estimates

NEW YORK: Arcview Market Research reports that consumer spending on legal cannabis in North America is outpacing previous estimates. The report indicates that retail cannabis sales will grow 33% from 2016 to nearly $10 billion this year.

By 2021 the legal market is expected to reach $24.5 billion, at a 28% compound annual growth rate (CAGR). Arcview also reported that according to BDS Analytics’ GreenEdge point-of-sale tracking service, the medical market in California is already as big as the total markets in ColoradoWashington, and Oregon combined.

Tom Adams, Editor-in-Chief at Arcview Market Research and Principal Analyst at BDS Analytics explained, “Our data shows positive indicators across the board for the legal cannabis industry, in North America and around the globe… The passage of the 2016 ballot initiatives and continued maturation of the existing Adult-Use markets are the primary drivers of the growth this year.  That’s nothing compared to what we can expect in 2018 and beyond from Nevada’s tourism, and California and Canada planning to launch Adult-Use sales in 2018.”

Legal Cannabis Sales Proving to Stay Popular

NEW YORK:  Sales of legal cannabis products are projected to top $20.2 billion by 2021 in North American alone at a compound annual growth rate of 25%, according to a report by Arcview Market Research

“The only consumer industry categories I’ve seen reach $5 billion in annual spending and then post anything like 25% compound annual growth in the next five years are cable television (19%) in the 1990’s and the broadband Internet (29%) in the 2000’s,” Arcview’s editor-in-chief, Tom Adams stated,

The report points out how economically beneficial retail cannabis sales were in states that legalized the products for medical and recreational use. “Sales taxes in state-sanctioned cannabis markets totaled more than $500 million in 2016 in ColoradoWashington, and Oregon alone, and $836 million since adult-use sales began in 2014. Nearly 1.9 million North Americans are legally using cannabis to manage conditions as severe as polymorphic seizures and as common as chronic pain, while millions more are consuming it legally in adult-use states with little or no negative impact,” according to the report.

Legal Cannabis Market Projected to Grow as Consumers Spend More

NEW YORK: Legal cannabis sales in the North American market are expected to grow rapidly as consumers spend more every year on legal cannabis. According to a new report from Arcview Market Research, people in America and Canada spent $56.4 billion on cannabis in 2016, while about $6.9 billion came from the legal recreational and medical cannabis market, a 34 percent up from 2015. The accelerating pace of cannabis legalization in the United States continues to drive the growth in the market.

Colorado, the first state in the United States to legalize cannabis for recreational use, witnessed impressive growth in the cannabis market. According to the Colorado Department of Revenue tax data released last week, Colorado’s dispensaries sold $1.3 billion of legal cannabis in 2016, while $875 million came from recreational sales and $438 million from medial cannabis. Colorado’s first licensed recreational dispensaries opened in January 2014. Those shops generated $699.2 million revenue by selling recreational and medical cannabis during their first year operation, and the number reached $996 million in 2015.

Consumers Spend $53.3B On Legal, Medical & Illicit Marijuana Sales In North America

CALIFORNIA: Arcview Market Research, a leading publisher of cannabis market research, released its first ever estimate of the entire North American cannabis market, including legal, medical and illicit marijuana sales. The 5th edition of the State of Legal Marijuana Markets Report estimates consumers spent $53.3 billion on cannabis in 2016 across all markets.

This first of its kind report finds that legal regulated marijuana sales in North America totaled $6.9 billion in 2016, a 34 percent increase from 2015. Legal sales are projected to grow at a compound annual growth rate of 26 percent, from $6.9 billion in 2016 to an estimated $21.6 billion by 2021. The report also found that while all categories of legal cannabis products enjoyed healthy growth, the growth of alternative methods of consumption outpaced that of traditional flower sales, jumping, for example, from 30 percent of total legal sales in the first quarter of 2014 to 45 percent in the third quarter of 2016 in Colorado. The new legal market projections rely on a proprietary bottom-up point-of-sale foundation with millions of individual consumer transactions from dispensary partners in the largest legal cannabis markets across the country created by BDS Analytics.

An executive summary of the report was released at Arcview’s private Investor Forum in L.A. January 17th. The full 200+ page report will be released in a few weeks.

“The enormous amount of existing, if illicit, consumer spending sets cannabis apart from most other major consumer-market investment opportunities throughout history,” said Troy Dayton, CEO of Arcview Market Research. “In contrast to comparable markets with fast growth from zero to tens of billions in recent decades such as organic foods, home video, mobile, or the internet, 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.”

Other highlights of the executive summary include:

  • Including the illicit market, consumer spending on cannabis in North America amounted to an estimated $53.3 billion in 2016, 87 percent of it still outside legal channels despite erosion of the illicit market in adult-use states. That was down from 90 percent of sales in 2015;
  • Advances in legalization after four new adult-use markets (California, Massachusetts, Nevada and Maine) become active by 2018 will erode the illicit trade further, down to 67 percent of the market in 2021;
  • Colorado’s illicit market has seen the steepest decline in percentage of overall sales
  • In states that have not legalized even medical sales however, illicit market operators thrive on the “illegality premium” built into prices there with no competition from legal operators;
  • In Q1 2014 when adult-use launched in Colorado, over 70 percent of legal sales came from dried flower; in Q3 2016, it was less than 55 percent. In contrast, concentrate sales were $20 million in Q1 2014, or 13 percent of sales. By Q3 of 2016 they had quadrupled to $80 million, and 22 percent of sales;
  • By Q3 2016, Washington legal sales were already 21 percent concentrates, 9 percent edibles and 10 percent pre-rolled marijuana cigarettes, with flower accounting for only 59 percent. In Oregon where concentrates and edibles were only allowed for the first time in the adult-use channel in July 2016, the transformation in category and brand sales was almost overnight.

“This is the most dynamic market I have analyzed since the early days of the Internet in the 1990s,” said Tom Adams, Arcview Market Research’s new Editor-in-Chief. “Just one example: a huge surge in private equity investment in 2014 and 2015 helped drive the number of brands with concentrates in Colorado stores from 465 to 975 in one year. The largest brand grew its sales 84 percent in the first nine months of 2016, but several competitors posted triple digit growth rates such that it barely held on to its share of the market in a very crowded field.”

Washington Marijuana Sales Expected to Double, Grow To Over $2 Billion By 2020

WASHINGTON:  Arcview Market Research, in partnership with New Frontier Data, has released its Washington Legal Cannabis Market State Profile, which explores the recent significant changes to the state’s cannabis industry. The elimination of the medical system that was operating in parallel to the adult use market will lead to a significant contraction of the state’s medical market, making the adult use market the primary driver of the official Arcview Market Research projection of $2.4 billion in cannabis sales projected by 2020.

“The Washington market is maturing, but it has a long way to go to reach saturation. It will practically double by 2020. People really like cannabis and the regulated market is beating the underground market, as predicted,” said Troy Dayton, CEO of The Arcview Group.

“Over the past 18 months, Washington has undergone some of the most dramatic changes to any regulated cannabis program in the country, from lowering the tax rates to consolidating the medical and adult use markets into a single channel. These changes are intended to streamline the market and eliminate structural inefficiencies. However, it will be at least another year before we understand their full impact on product supply and consumer behavior,” said New Frontier Data Founder & CEO, Giadha Aguirre DeCarcer.

Washington’s combined medical and adult use sales are projected to grow from $1.2 billion in 2016 to $2.04 billion in 2020, a compound annual growth rate of 23%. After more than two years in operation, sales in Washington’s adult use market have continued to exceed expectations. In 2014, average monthly sales were $10.8 million. By 2015 average monthly sales increased five-fold to $51.2 million. This then doubled in 2016 to more than $111.6 million, with strong demand expected to continue in 2017.

The state has folded medical sales into existing retail cannabis stores, eliminating all stand-alone medical dispensaries. Additionally, the state increased the number of retail licenses that will be made available from 334 to 556, and under the new harmonized medical program, patients will be required to pay the 37% excise tax on cannabis, thereby eliminating a key benefit of being a medical cannabis patient relative to being an adult use consumer.

Some other critical issues related to Washington’s market explored in the report include:

  • Adult Use Sales Continuing to Outperform Expectations
  • Washington exemplifies the value of making cannabis industry data publicly available
  • The growth of concentrates as the dominant non-flower product segment
  • The state’s goal to expand the random testing program for pesticides

If you would like more information on Washington’s legal cannabis markets, you can download the 2016 Washington Legal Cannabis Market State Profile at www.ArcviewMarketResearch.com and the report can be ordered for $249.

Massachusetts Marijuana Sales To Top $1 Billion By 2020

MASSACHUSETTS: Arcview Market Research, in partnership with New Frontier Data, has released its Massachusetts Legal Cannabis Market State Profile, which shows the potential growth of the legal marijuana market after Massachusetts voters legalized adult-use on Election Night 2016. The official Arcview Market Research projection for the Massachusetts market is that it will grow to over $1 billion by 2020 at a compound annual growth rate of 113%.

“Unlike other places where cannabis is legal, Boston is within driving distance of many of the most populous places in America. This will make Boston the cannabis capital of the world in short order. This cannabis tourism will drive significant revenue, tax dollars, and job growth which will make legalization very attractive to neighboring states,” said Troy Dayton, CEO of The Arcview Group.

“As one of only two states on the East Coast to legalize cannabis for adult use, Massachusetts represents a significant opportunity for business owners and entrepreneurs in the space. The law does not limit product forms nor does it cap retail dispensary licenses, which are both factors that will positively contribute toward the billion dollars in sales projected by 2020,” said New Frontier Data Founder & CEO, Giadha Aguirre DeCarcer.

Over the next four years, the legal cannabis market in Massachusetts is forecast to grow from $52.0 million in 2016 solely from medical use sales, to an estimated $1.07 billion in 2020 with medical and adult use sales combined. The full regulatory structure and key program details of the adult use market remain to be determined, and the market could take a few different directions depending on the actions of the Massachusetts Cannabis Control Commission and local municipalities across the state. However, the broad parameters of the law create an opportunity for an open and expansive market.

Key trends that will be critical in shaping the growth and evolution of Massachusetts’ market covered in the report are:

  • Interplay between the medical and adult use markets
  • Competition from bordering states with legal medical and adult use programs
  • Regional, national, and international tourism demand
  • Physician participation and its impact on medical program growth

If you would like more information on Massachusetts’ legal cannabis markets, you can download the 2016 Massachusetts Legal Cannabis Market State Profile at www.ArcviewMarketResearch.com and the report can be ordered for $249.

 

Cannabis Industry Expects to Become the Next Biggest Market

NEW YORK: After historical elections earlier this month, other states may be reconsidering their stance on legalization of Cannabis for medical or recreational use. Currently, there are gaps among states concerning cannabis legalization reform and the difficulties for both the government and the businesses involved as 20 percent of Americans can now lawfully use Cannabis.

The largest recreational usage of cannabis is now the state of California. According to Gallup polls, public support for legalizing cannabis has reached 60%, its highest level in Gallup’s 47-year trend. The market for both recreational and medicinal cannabis is projected to grow to $22 billion by 2020 according to ArcView Market Research.

 

Investors Should Be Encouraged by 3 New Marijuana Statistics From The “Greenest” State

OREGON: We can assume there were quite a few cheers when California passed Proposition 215 in 1996, becoming the first state to legalize marijuana’s medical use, but 2016 could go down as the most remarkable year for the marijuana industry to date.

Since this first approval 20 years ago, the marijuana industry has witnessed 24 states in total legalize medical marijuana, of which Pennsylvania became the latest just this past week. Additionally, four states – Colorado, Washington, Oregon, and Alaska – have legalized the use of marijuana for recreational purposes. The 2016 elections could result in a sizable boost to both figures as favorability to marijuana among the American public continues to rise. Gallup’s national poll from Oct. 2015 showed that 58% of its respondents favor the idea of nationwide legalization, whereas a CBS News poll conducted a year ago this month demonstrated that roughly five in six people want to see medical marijuana legalized.

But just as exciting for the industry is the opportunity that may be at hand for investors. Marijuana is among the fastest-growing industries in the U.S., with ArcView Market Research expecting the industry to grow at a brisk compounded annual rate of 30% between 2016 and 2020, ultimately reaching an approximate market value of $22 billion by 2020. Investment opportunities where industries can sustain a 30% growth rate for a half-decade or longer simply don’t come around very often, making marijuana a seemingly attractive investment opportunity.

I Got A Marijuana Prescription And Pot In Minutes Without Leaving My Couch

CALIFORNIA:  I’ll begin this story with a disclaimer: I rarely smoke weed. Aside from the few times that I’ve tried it recreationally, marijuana has never really appealed to me as it does to the millions of Americans who light up for medical purposes or just for fun.

Perhaps that’s what makes my experience with Eaze, an on-demand weed delivery marketplace, all the more surreal. Last Friday while sitting in my friend’s living room, I was able to get a preview of the company’s new app-based feature, which allows users to consult with a doctor via their mobile phones or computers for medical marijuana assessments. Within an hour I used Eaze to video conference with a doctor, receive a marijuana recommendation and purchase an eighth of an ounce of “Sour Diesel” for delivery. The cannabis arrived shortly after the sausage and pepperoni pizza I had ordered to accompany it.

While diagnosing a patient using an internet video call and delivering marijuana to your front door are not particularly new advents, Eaze is hoping that combining the two will break open the legal U.S. cannabis market that did $2.7 billion in sales last year as estimated by ArcView Market Research, a marijuana investment and advocacy firm. In a time when everything from taxis to groceries have become “on-demand,” the San Francisco-based company has raised $12.5 million in funding from investors including DCM Ventures, Snoop Dogg and Fresh VC to streamline the cannabis delivery market and lead the way in the budding weed startup economy.