2017 Legal Cannabis Market Developments

NEW YORK: The future of the legal cannabis market depends on a variety of factors. Politically, some have expressed concerns regarding the incoming elected administration, others feel more optimistic after nine states have voted this election cycle. The results overwhelmingly came in favor of legalization of cannabis for medical and recreational use. Economically, the industry has shown tremendous growth year to year. According to a research published on January 3rd 2017 by ArcView Group, the legal cannabis sales in the U.S. last year reached $6.7 billion, a growth of 30 percent from 2015. Sales are projected to increase to $20.2 billion by the year 2021 representing a 25 percent compound annual growth rate.

In an interview to Forbes, Arcview‘s editor-in-chief Tom Adams said that, “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 Chief Executive Officer Troy Dayton added, “One of the biggest stories was the alternative forms of ingestion… Concentrates and edibles are becoming customer favorites versus traditional smoking.”

The Cannabis Market Enters 2017 On A Strong Footing

NEW YORK: Over the recent few years, particularly in 2016, the legal cannabis industry has accomplished some significant milestones. Most importantly is the change of public opinion regarding the use of cannabis, both for medical and recreational purposes. Before the November 8th elections where five states voted on legislation reform, a Gallup poll showed that 60% of Americans support legal cannabis use. According to the poll, that is the largest percentage of support for legalization ever in the recorded 47-years of studies conducted, with support increasing among all age groups.

As a result of this election cycle, as five additional states voted in favor legalization, including California, the largest market for the industry, The Drug Enforcement Administration also changed its approach. The DEA has previously declined to reschedule cannabis under the Controlled Substances Act, has now made easier access for research, and upping the number of authorized manufacturers that supply the substance to researchers. As for the industry’s presence, a recent report published on cannabis licenses conducted by research firm Cannabiz Media, the cannabis industry is entering 2017 with 2,966 medical dispensaries and 3,973 retailers across the country, with more than 4,200 cannabis cultivators.