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.

Marijuana Entrepreneurs in Washington Pitch Ideas to Investors

Entrepreneurs and investors in Washington and Colorado are excited about a market full of opportunities stemming from the legalization of recreational marijuana in those states. In Seattle, on November 5, thirteen companies pitched business ideas to more than sixty investors from the ArcView Investor Network, a firm that connects entrepreneurs with those interested in financially backing legal marijuana business ideas. Some of the local companies that pitched include, Mellow Mood, a Portland-based art glass pipe chain, and Rainier Wholesale, a Seattle-based company looking to build an efficient and carbon-free marijuana production plant.

ArcView held a similar meeting in Denver this past September where investors handed out more than $1.7 million for a social networking app for cannabis users, a leading Colorado cannabis retailer, and a security company for legal cannabis businesses, among other business ideas.

Being the first states to legalize marijuana sales, Washington and Colorado are expected to be a test case for other states considering legalization. Washington has recently adopted rules governing marijuana sales into law, and Colorado could see regulated stores open as soon as January 1, 2014. 

ArcView believes that the legal marijuana industry could surpass the smartphone market in terms of growth and recently released a market research report expressing the optimistic view. At least one Seattle-based startup is already seeing a positive change in their cash flow. Leafly, a crowd-sourced review platform for marijuana strains, said that people thought they were crazy when they started, but now they just sit back and wait for the investors to come to them.