U.S. Federal Cannabis Legalization Could Be Worth $128.8 Billion In Taxes And 1.6 Million Jobs

DISTRICT OF COLUMBIA: New Frontier Data, the authority in data, analytics and business intelligence for the global cannabis industry, releases its new study Cannabis In the U.S. Economy: Jobs, Growth and Tax Revenue, 2019 Edition. The report looks at the current state of legal cannabis jobs and tax revenues and projects the impact that full federal legalization would have on the U.S. economy, especially tax revenue generation and job creation. New Frontier Data forecasts that under full federal legalization the cannabis industry could produce nearly $130 billion in additional tax revenues and over 1 million jobs nationwide.

“With so much speculation about economic slowdown, the potential for federally legal cannabis to create up to a million new jobs and close to $130 billion in tax revenue is likely going to be of interest to regulators and presidential candidates in 2020,” said New Frontier Data Founder and CEO Giadha Aguirre de Carcer. “Cannabis is already being considered as an investment option for forward-looking portfolio and fund managers as a possible hedge against economic downturn impacting more traditional investments.”

Some of the report findings include that:

  • 2018-2019 YOY job growth in the cannabis industry generated nearly 82,000 jobs.
  • If full legalization occurred in all 50 states today, there would be in excess of 1.46 million jobs, increasing to 1.63 million jobs by 2025.
  • Full legalization would result in more legal businesses participating in the market, more consumers participating in the legal market, and more employees on official payrolls, resulting in $8.4 billion in payroll taxes. By 2025, payroll deductions would increase to $9.5 billion.
  • Assuming a 15% federal sales tax, total revenues from 2018–2025 would reach $73.7 billion. This amount would be entirely new revenue to the U.S. Treasury, as there are currently no federal sales or excise taxes.
  • The total combined taxes under full federal legalization would reach $175.8 billion between 2018–2025 based on business tax revenues, the payroll withholdings based on the estimated employment, and the 15% retail sales taxes.
  • The difference between the current structure and the theoretical model is a $128.8 billion increase in federal tax revenues.

A free Download of Cannabis In the U.S. Economy: Jobs, Growth and Tax Revenue, 2019 Edition is available at: https://newfrontierdata.com/jobs2019

U.S. Hemp Revenues 2nd To China’s: New Frontier Data Projects $5.7B In U.S. Hemp Sales by 2020

DISTRICT OF COLUMBIA: New Frontier Data, the authority in data analytics and business intelligence on the global cannabis industry, with sponsorship from Hoban Law Group, Shi Farms and Mary’s Nutritionals,  releases a new, first-of-its-kind report, The Global State of Hemp: 2019 Industry Outlook, stating the global hemp industry reached $3.7 billion USD in retail sales in 2018, with an annual growth rate of 15% driven by continued strength in Chinese textiles, European industrials, Canadian foods, and the U.S. hemp-derived CBD market.

China led all countries with nearly $1.2 billion USD in hemp sales in 2018, followed by the United States ($1.0 billion), Europe ($980 million) and South and Central America ($220 million). The U.S. market is positioned to grow under the 2018 Farm Bill, with an estimated $2.6 billion projected in sales by 2022, with $1.3 billion in sales estimated for hemp-derived CBD products by 2022.

“As regulatory barriers diminish in the months and years ahead, businesses will continue to expand the ways in which hemp is utilized, especially across medicinal and industrial applications,” said New Frontier Data Founder and CEO Giadha Aguirre de Carcer. “This report is the first in-depth, quantitative and fact-based analysis of the global hemp industry since the United States’ 2018 Farm Bill and Canada’s Cannabis Act passed; two groundbreaking changes in North America that dramatically re-shaped the entire hemp industry.”

By 2020, New Frontier Data estimates the global market will reach $5.7 billion USD across all markets, representing a three-year compound annual growth rate (CAGR) of 17.5%.

“The U.S. hemp industry is set to boom under the 2018 Farm Bill. American farmers have a new crop, and consumers are seeing an explosion of new and innovative products. Hemp: the ultimate triple bottom line crop for people, planet and profits,” said New Frontier Data Director of Hemp Analytics Sean Murphy.

New Frontier Data’s online intelligence portal, Equio, provides readers with reports on global markets and a series of country profiles which offer an introduction to various markets, trends and recent investment activities in the cannabis industry. Equio subscribers have access to this new report.

Purchase and download The Global State of Hemp: 2019 Industry Outlook HERE.

Cannabis PE Firm Merida Capital Partners Exceeds $50 Million In Assets Under Management

NEW YORK:  Merida Capital Partners, a private equity fund targeting fundamental growth drivers underpinning the rapid development of the cannabis industry, announced it has crossed $50MM in assets under management and closed transactions in nine companies in its second Fund. With the full deployment of Merida’s first tranche of Fund II and the opening of the firm’s second investment tranche, Merida Fund II will continue its focus on high-conviction investments in leading companies that have crossed the ‘fragmentation gap’ yet need strategic capital to profoundly accelerate their respective growth curves. Merida will also focus on businesses implementing capex-lite models in the traditionally capital-intensive verticals of cultivation, dispensing, and life sciences.

“Merida continues to see an acceleration of institutional interest in our core strategy,” said Mitch Baruchowitz, Managing Partner of Merida Capital Partners. “As cannabis evolves as an agricultural product, a natural plant-based medicine, a constituent in medical-grade formulations, and an adult-use consumer product, Merida will capitalize on its data, informational edge, and deep relationships in the cannabis space to make high-impact investments that deliver value to investors.”

“People always talk about taking the ‘right money’ or ‘smart money,’ and Merida has proven to be the epitome of a true value-add investor in the cannabis space,” said CEO of Kush Bottles Nick Kovacevich. “From the first day we accepted their funds they have been involved in directly impacting our strategy and growth at Kush Bottles.”

“Merida has supported us in every way,” Marion Mariathiasan of Simplifya. “The firm has given us the resources we needed to broaden our footprint in providing cultivation and dispensary compliance, which ultimately leads to a more stable cannabis industry ecosystem.”

To date, Merida has closed lead investments in: Kush Bottles, a leading supplier of cannabis packaging and production logistics; GrowGeneration, an industry leader in commercial equipment sales and large-scale grow support with hydroponic supply locations in CA, CO, MI, RI, NV and WA; New Frontier Data, an independent, technology-driven analytics company specializing in vetted data, actionable business intelligence and risk management solutions for investors and participants in the cannabis industry; Simplifya, a technology company helping businesses of all sizes track cannabis compliance through industry-leading self-audit and reporting tools; Steep Hill Labs, an analytical testing company for licensed cultivators, producers, and manufacturers of cannabis; Canndescent, a California-based cultivator of ultra-premium cannabis; Valley Agriceuticals, one of only 10 New York-state licensed cannabis cultivators and manufacturer of medical-grade medicinal cannabis treatments and herbal medicines; Mainstem, a business-to-business (B2B) solution that consolidates cultivators, manufacturers, retailers and dispensaries into one comprehensive marketplace, connecting buyers directly to sellers via a MainStem Affiliate Partners program; and Emerald Scientific, a B2B leader in cannabis science supplies, equipment, and information.

Legislation Key For The Legal Cannabis Market

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

The market is going through a period of robust growth thanks to increasing legalization and decriminalization of cannabis products across North America and Europe. The report specifies that due to the complex regulatory structure at state and federal level, the full probable value of the market is not yet clear. A recent report published by Arcview Market Research explains that growth of the legal cannabis industry will reaccelerate beginning 2018, as adult use sales rise in CanadaCalifornia, and Massachusetts along with medical sales in Florida.

Major markets for the cannabis industry such as the state of California, where legal sales of recreational products have begun on January 1st, are expected to become examples of how to manage the new and growing cannabis industry. Giadha Aguirre de Carcer, New Frontier Data CEO, explained, “Significant changes are already underway in California for medical cannabis and adult use laws, which we see will have major implications for the cannabis industry, including ecommerce and delivery services in the state… As the largest state in the country – and the largest potential market for cannabis products – the implications for the growth of the industry because of California’s adult use market cannot be overstated.”

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.”

 

New Frontier Data And MassRoots Join Forces

DISTRICT OF COLUMBIA: New Frontier Data, a leading provider of data, analytics and business intelligence in the cannabis industry, and MassRoots have announced a partnership designed to “elevate digital marketing practices and better understand social consumer behavior at a pivotal time in the cannabis industry.”

“It is an exciting time in the cannabis industry whereby large financial, research, and consumer-focused enterprises are now looking to understand risks and opportunities stemming from this booming industry. MassRoots is the largest social media platform dedicated to cannabis in the world, with incredible engagement from its members, creating a unique opportunity to learn from them and educate brands, investors, and mature markets entering the cannabis arena,” said Giadha Aguirre De Carcer, CEO and founder New Frontier Data.

“This past year at MassRoots we have been focused on taking our amazing cannabis community to the next level with a new leadership team and its vision to take the company beyond the social media platform and this partnership with New Frontier Data should allow us to achieve that. This industry has evolved from a movement into a thriving market that is hungry for data to serve its shareholders and consumers. Only through the data analytics provided by New Frontier Data and our understanding of our community can we believe we can move this emerging market and pioneering platform forward,” said Scott Kveton CEO at MassRoots.

New Frontier Data’s data engine will enable MassRoots to aggregate, analyze and monetize the large volume of consumer engagement data being collected by the MassRoots mobile application and web portal. By combining MassRoots consumer data with New Frontier Data’s Big Data Engine and market leading industry analytics, we will then be able to generate greater insights into the 3 million users in the MassRoots eco-system and establish correlations between their interests and interactions across multiple channels. This collaboration is expected to will create broader applications allowing for far more sophisticated and targeted digital advertising, as well as more advanced consumer engagement.

Research Shows Medical Cannabis To Become a Major Part Of Pharmaceutical Market

NEW YORK: According to a research report by New Frontier Data, medical marijuana sales are forecast to grow to $5.3 billion in 2017, accounting for 67% of total cannabis sales. Medical sales in currently legal states are forecast to grow to $13.2 billion by 2025, at which point medical sales will account for 55% of all sales. In comparison, adult-use sales in 2017 are forecast to reach $2.6 billion, rising to $10.9 billion by 2025. Medical cannabis products are known to be beneficial for such conditions as chronic pain, post-traumatic stress disorder (PTSD), sleep disorders, anxiety, nerve pain and others.

The research points out that the United States constitutes 35% of the global pharmaceutical market, the largest market in the world, and a major driver of the U.S. economy, and it is estimated that cannabis and related products can replace $4.4 billion to $4.9 billion per year of current spending on existing treatments.

“Looking at these numbers, it would appear that medical cannabis would be a drop in the bucket when it comes to impacting the total pharmaceutical industry. However, when you start to break down the numbers by specific sectors of the industry, like chronic pain or symptoms associated with chemotherapy, which are very lucrative markets for pharmaceutical companies, you will certainly see cannabis have a major impact,” said Aguirre De Carcer, CEO of New Frontier Data.

 

State Tax Revenues Benefit From Legalized Cannabis Market

NEW YORK:  The legal cannabis market is expected to generate more tax revenue for states in the U.S, according to a report from New Frontier Data.

The U.S. cannabis market could generate $2.3 billion in state tax revenue from retail sales by 2020. The projection is based on the assumption for projected growth in all states currently legal for medical and recreational use of cannabis. According to the Colorado Department of Revenue tax data, dispensaries in Colorado, the first state in the United States to legalize cannabis, sold a record of $1.3 billion of legal cannabis in 2016.

New Frontier Data CEO Giadha Aguirre De Carcer. Said: “During this tough economy states are looking for any way to close their budget shortfalls and it appears that cannabis may hold an answer for them. New Frontier Data looked at the potential revenues that could be generated from state cannabis taxes and found that in this year alone, states could raise nearly $750 million and triple that number by 2020. These revenues will have a meaningful impact on state programs and provide governors with much needed breathing room in their budgets,”

 

The Legal Cannabis Market Is Expected to Grow

NEW YORK: According to a research report by New Frontier Data, in 2017 medical cannabis sales are forecasted to grow to $5.3 billion, accounting for 67% of total cannabis sales. By 2025, medical sales in current legal states are forecasted to grow to $13.2 billion, at which point medical sales will account for 55%. Comparatively, adult-use sales in 2017 are projected to reach $2.6 billion, rising to $10.9 billion by 2025. In 2016 alone, adult-use consumers shopped once every 14 days and spent $49 per transaction; medical consumers, by contrast, shop once every 10 days and outspend the adult-use customer by more than three-to-one; spending $136 per transaction.

California by itself is expected to play a major role in the legal cannabis market. “California offers the perfect example of why it is so important to understand trends in consumer behavior. The state’s legal 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,” said New Frontier Data CEO Giadha Aguirre De Carcer.

U.S. Legal Cannabis Market to Grow to $24.1 Billion by 2025

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).