Friday, November 15, 2013

Legal Marijuana Expected to Bring in $1.4 Billion in Sales This Year

In the United States this year, the legal marijuana market will post about $1.43 billion in sales, and according to a report released by ArcView Market Research, the 2014 market could boast an increase of 64 percent, up to $2.34 billion. The San Francisco-based research company, formerly known as See Change Research, released its second edition of the State of Legal Marijuana Markets Report in November. The report is based on more than 400 surveys and interviews of cannabis retailers, cultivators, processors and industry leaders.

Steve Berg, editor of the ArcView report, said that even though there are some risks and uncertainties, those who understand the legal marijuana market have the opportunity to profit greatly from its rapid growth.

The Washington State Liquor Control Board is presently setting up a system for deciding who gets retail licenses to sell marijuana and be part of the combined medical and recreational marijuana market of $271 million forecast for 2014.

The ArcView report states that California is the largest legal cannabis market in the country with $980 million in sales. Nationwide, it is estimated that over 590,000 customers will have purchased cannabis legally from a retailer in 2013. The report goes on to project that, over the next five years, 14 more states will legalize adult use and two more states will legalize medical use. The research also predicts that these new markets plus growth in existing markets will contribute to a $10.2 billion annual market potential by 2018.

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