Eaze Data Report: Major Increase In Legal Marijuana Sales in California

CALIFORNIA: Eaze, a leading marijuana technology company, has released its Eaze Insights: 2017 State of Cannabis data report, a comprehensive overview of consumer trends driving the marijuana industry year over year.

The report, which draws insights from the user behavior of more than 350,000 Eaze consumers and 15,000 survey respondents across the state of California, reveals that 2017 was a landmark year for marijuana acceptance and normalization. With the knowledge that adult use would be legal at the start of 2018, consumers set aside preconceived stigmas and became increasingly comfortable using marijuana to enhance their everyday lives — whether to sleep better or celebrate popular holidays. In anticipation of this demand, Eaze added several brands to its platform so consumers could conveniently select from a wide variety of products to meet their needs.

Key findings from the report include:

  • Marijuana’s going mainstream: In 2017, marijuana was ordered via the Eaze platform every 10 seconds, a 200 percent increase from the frequency of deliveries in 2016 (every 30 seconds).
  • Marijuana’s increasingly popular among Baby Boomers: The number of Baby Boomers ordering marijuana increased by 19 percent annually, the highest of any generation. Vaporizers and edibles are most popular among Millennials, while tinctures are most popular among Baby Boomers.
  • Inauguration Day sales spiked: On Inauguration Day, sales increased 21 percent, making it the seventh most popular holiday for ordering cannabis, more than Cinco De Mayo, Memorial Day weekend, and Mother’s Day. Other popular days? Three-day weekends like President’s Day and 4th of July, which ranked as the third and sixth most popular delivery days, respectively.
  • Convenient marijuana products will win out: The modern day consumer favors ready-to-use, convenient consumption methods like vaporizers, edibles, and prerolls. In the past year, vaporizer sales increased 191 percent and preroll sales increased 267 percent. Flower sales, on the other hand, are wilting, having dropped 43 percent over the past year.
  • A wellness solution: Consumers are reportedly turning to marijuana as a wellness product for things like sleeplessness, anxiety, joint pain, and other ailments. In fact, 45 percent of survey respondents replaced sleeping pills with marijuana.

Data Reveals Optimism Regarding Legal Cannabis Sales

NEW YORK: According to a report by New Frontier Data, medical cannabis sales in 2017 are forecast to grow to $5.3 billion, which represents 67% of total cannabis sales. The report estimates that by 2025, medical sales in current legal states are forecast to grow to $13.2 billion, which will account for 55% of total cannabis sales. Adult use sales in 2017 are forecast to reach $2.6 billion, or rising to $10.9 billion by 2025. New Frontier also points out that cannabis sales in the state of California alone are projected to reach $2.8 billion in 2017 and $6.6 billion by 2025, with a compound annual growth rate of 12% over the next eight years.

A survey conducted by Marijuana Business Daily reveals that over 40% of cannabis business owners are planning to take their companies into a new market within the next year. According to the survey business owners intending to expand their operations as, “the vast majority have identified opportunities in both the medical and recreational markets. With sales continuing to grow rapidly in mature recreational cannabis industries like Colorado and Washington state – and promising new medical markets such as MarylandOhio and Pennsylvania set to come online in the near future – it’s perhaps not surprising that many entrepreneurs are looking to expand into both medical and adult-use markets.”

 

Medical Cannabis Data Shows Strong Sales And Growth

According to a research published by Hexa Research, the U.S. medical cannabis market size was valued at USD 5.44 billion in 2016, and is expected to be valued $19.48 billion by 2024.

The medical cannabis market is still in stage of development and is expected to grow significantly during the forecast period owing to rising consumer demand. Consumer attitude towards the herb is continuing to shift in a positive direction in part thanks to its medical benefits for Arthritis, Migraine, Cancer and more. In the U.S it’s estimated that more than 50 million adults and 3 million children have arthritis. The demand for medical cannabis for arthritis alone is expected to grow at a CAGR of 17.8% over the projected period.

Marijuana Initiatives Will Add $7.4 Billion To Market

CALIFORNIA:  Arcview Market Research, in partnership with New Frontier Data, have released a special election update to the official Arcview Market Research growth projections in light of victories from 8 of the 9 marijuana ballot initiatives. The passage of initiatives in California, Nevada, Massachusetts, Maine, Florida, Arkansas, Montana, and North Dakota will add $7.4 billion to the 2020 market forecast bringing the overall market projection for legal adult-use and medical sales in the U.S. to $21.2 billion by 2020. That brings the compound annual growth rate (CAGR) to 28%.

“There is nothing more powerful than an idea whose time has come. This is marijuana’s moment,” said Arcview Group CEO, Troy Dayton. “Even without these initiatives passing, the legal marijuana market was poised for remarkable growth. Now, with these legalization victories, growth will be off the charts. You will not find another multi-billion dollar industry growing at this rate that isn’t already attracting huge multi-national companies and institutional investors. It’s truly a historic opportunity for pioneering investors and entrepreneurs to take a run at a huge market without needing to compete with the really big dogs…yet.”

“Recent polls have shown 60 percent of the public supports adult use legalization. Nine in ten support the legalization of medical use. The ten initiatives on the ballot reflect the accelerating public debated on legal cannabis access. The passage of these measures shows that public support on this issue is not solely confined to urban, liberal markets but extends into conservative rural states as well,” said Giadha DeCarcer, Founder and CEO of New Frontier.

Below are the 2020 Arcview Market Research projections for various state markets that passed initiatives (presuming new markets are operational by 2018):

California: Medical — $3.3B, Adult Use — $4.3B, Total Market = $7.6B

Maine: Medical — $129M, Adult Use — $196M, Total Market = $325M

Massachusetts: Medical — $301M, Adult Use — $771M, Total Market = $1.1B

Nevada: Medical — $193M, Adult Use — $429M, Total Market = $622M

Arkansas: Total Medical Market = $6.4M

Florida: Total Medical Market = $1.6B

Montana: Total Medical Market = $128M

North Dakota: $2.3M

For a deep dive into the market dynamics in each state and trends driving this market please download a copy of the 4th edition of the State of Legal Marijuana Markets. The report is downloadable at www.ArcviewMarketResearch.com and www.frontierfinancials.com.