Legal U.S. Marijuana Market Growing Faster Than Smartphones

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Photo courtesy of Reason

Seattle, WA –  ArcView Market Research (formerly See Change Research) released the 2nd edition of the State of Legal Marijuana Markets report finding a $1.43 billion market for cannabis in the United States in 2013.  The report projects sales in 2014 to grow to $2.34 billion, an increase of 64%. At this rate, U.S. cannabis sales will outpace the worldwide growth of smartphone sales, which expanded at an impressive 46% according to Gartner[1].

The report predicts that 14 more states will legalize adult use and 2 more states will legalize medical use over the next 5 years.  These new markets plus maturation of the existing markets will create a $10.2 billion annual market potential by 2018..

The State of Legal Marijuana Markets 2nd Edition is the most comprehensive and sophisticated analysis of legal markets ever undertaken.   The first edition of this report is the most oft-cited market data report on the industry.  For this edition, ArcView Market Research conducted over 400 surveys and interviews of cannabis retailers, cultivators, processers, and industry leaders. ArcView has deep domain expertise and got unparalleled access to key players in probing these markets.

Other findings of the report include:

  • California is still the largest legal cannabis market in the country at $980 million.
  • More than 590,000 consumers will purchase cannabis legally from a retail storefront in 2013
  • Arizona is poised to be the fastest growing market expanding from $22 million in 2013 to $134 million in 2014.
  • Massachusetts will be the largest new market opening in 2014 with a $55 million market.
  • Adult-use marijuana sales in Colorado will add $359 million to the existing medical marijuana market of $260 million resulting in a combined $619 million market in 2014.
  • The transition from the medical market to an adult-use market in Washington, which won’t start until spring, will result in a combined $271 million market in 2014
  • New Jersey, Maine, Delaware and the District of Columbia markets struggle under restrictive patient access and slow regulatory processes.
  • There is increasing investment activities in retail dispensaries, cultivation businesses and ancillary businesses such as security services, point of sale software, and grow lights.

“The Legal Marijuana Markets report shows cannabis is one of the fastest growing industries”, said Steve Berg, former Managing Director of Wells Fargo Bank and Editor of the report.  “Entrepreneurs and private investors are flocking to these markets. While there is a lot of hype around the marijuana industry, our report provides hard data and in-depth analysis for sophisticated players looking to capitalize on the seismic shifts occurring in the regulatory environment.”

“The Obama Administration’s recent announcement to allow Colorado and Washington to move forward with adult-use markets is the clearest indication to date that early movers in the marijuana industry are on to something,” said Steve Berg.  “While there are unique risks and great uncertainty in this market, it is showing signs of maturity. Those that really understand the market dynamics are poised to reap large rewards from this historic period of rapid growth.”

The executive summary of the report is downloadable for free at legalmarijuanamarkets.com and the full report is available for $475 and will ship in 30 days.  The report is sponsored by a number of leaders in the industry including The National Cannabis Industry Association4Front AdvisorsCannasure Insurance ServicesMedicine Man, and Mjardin.

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