Medical Cannabis Sales Have Soared in 2016 (and Continue to)
When the medical cannabis movement began to grow in the United States just a few years ago, there was a large portion of the American population who believed the movement was a trend that would soon die out. The incredible revenue the cannabis industry has since produced in addition to the many lives the industry’s medical products have changed is proof enough that the medical marijuana movement is here to stay.
New Frontier Data, famed for its comprehensive cannabis market research and annual reports, recently released its data for 2016 and prediction for the years to come. The company’s 2017 publication predicts
that by 2025, the cannabis industry will be worth more than $24 billion. The medical marijuana industry is expected to account for more than half of that $24-billion figure, according to New Frontier.
“It’s very hard to look at both the numbers and associated economic dynamics and envision that this genie could be put back in the bottle,” New Frontier’s executive vice president of industry analytics, John Kagia, said.
Medical marijuana, which is now legal in 28 states, is more widely accepted by the American public than adult recreational cannabis. As such, medical programs are more widespread and have been in place longer than recreational programs have. New Frontier shows medical marijuana sales increasing at a compound annual growth rate of 13 percent, surpassing $13 billion, by 2025. In comparison, the recreational market has the potential to grow at a 25 percent compound annual growth rate, reaching about $11.2 billion.
In addition to the money cannabis has produced by way of tax revenue and sales, the industry is also providing employment opportunities for American workers. This trend too is expected to grow in 2017 and the years to come. Already having provided an additional 100,000-150,000 jobs, according to Marijuana Business Daily, the American cannabis industry could grow to about 255,000 jobs by 2020.
The report takes into account only the states that have already legalized medical marijuana use either by vote or congressional action. It is possible given recent growth in the legalization movement that anywhere from one to a handful of states could act to legalize medical or recreational cannabis use this year; New Frontier’s data could under represent the industry’s potential in this case.
“It’s not hard to imagine that the total cannabis industry could be substantially larger than even our conservative projections,” Kagia said. “We realize this is such a dynamic environment that even minor changes do have substantiate [effects].”
The medical cannabis industry is quickly becoming a solid investment. Furthermore, investing in the space helps advance medical technologies that could benefit countless patients. To learn more about the services First Harvest Financial offers, visit http://www.firstharvestfinancial.com