A leading marijuana investment and research company, The ArcView Group, released a report estimating marijuana sales in legal states for 2016. In 2015, sales totaled $5.4 billion, growing 17-percent from 2014. For 2016, the group predicts a 25-percent increase from 2015, making the projected nationwide sales around $6.7 billion.
ArcView expects marijuana sales to reach over $21 billion by 2020, surpassing the NFL, which is approximately a $15 billion industry. Over the next 4 years, the group expects a steady increase in sales of 30-percent. ArcView CEO, Troy Dayton says, “I think that we are going to see in 2016 this next wave of investors, the next wave of business operators, and people who’ve sort of been watching or dipping their toe in, really starting to swing for the fences and take it really serious.”
The data taken to project future sales comes from the partnership of ArcView and New Frontier. The markets used to compile the data include medical marijuana and recreational marijuana Fortune., caregivers and sales of marijuana products, according to
These large growth numbers are, in part, helped by recreational sales beginning in multiple states and more patients switching from prescription drugs to medical marijuana for relief from debilitating and terminal conditions. Edibles are also gaining popularity, which helped to boost sales numbers.
When asked about edibles sales, John Kagia, Director of Analytics at New Frontier said, “They also come at higher price points than flower does, which means the businesses are able to capture higher sales per customer through the sales of these new products.”
With marijuana legalization showing continued growth and acceptance in more states, more high-profile investors are likely to invest in the industry.