Watch How Tenfold Increase in ‘Adult Weed’ Fuels Marijuana Industry Boom by 2020

Article by HowMuch.net

Although it remains prohibited at the federal level, 23 states have in recent years approved the use of marijuana for medical purposes, while 4 states (Washington, Oregon, Colorado and Alaska, plus DC) also allow recreational use by adults.

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This year is a tipping point: a further 7 states are voting on adult use and another 4 on medical use in 2016. Adult use may well become legal in crucial states such as California, Nevada and Massachusetts. By the end of 2016, it’s likely that a clear majority of states will have moved from prohibition to legalization of some sort – all in less than half a decade.

As this GIF shows, wider and broader legalization will have a huge impact on the official marijuana market. Between now and 2020, sales are set to triple, from an estimated $7.1 billion to a projected $22.8 billion. While medical use is predicted to double, the real engine of growth will continue to be adult, recreational use. Legal cannabis sales grew from $4.6 billion in 2014 to $5.7 billion a year later. Most of that increase was in adult use, which more than tripled, from $374 million to $1.2 billion in 2015.

Medical marijuana’s relatively sluggish growth is evidenced by the prediction that the California market will shrink slightly, from $2.7 billion in 2015 to $2.6 billion in 2020, at which time the total medical marijuana market is projected to generate $10.7 billion. As legalized adult recreational use gets more widespread, many medical users are expected to make the switch to that retail channel – furthering its predicted explosive growth. By 2020, the total adult marijuana market is expected to be worth $12 billion – more than the medical marijuana market, and an incredible tenfold increase in just 5 years. Washington state’s adult marijuana market is predicted to be the nation’s biggest, at $2.6 billion, followed by Colorado’s, at $2 billion.

Several factors contribute to the rapid rise of the marijuana industry. Legalization has had largely beneficial effects on crime levels, has put a dent in the illicit pot trade and has generated tax windfalls for state governments. In 2015, Colorado expected an intake of $135 million in marijuana-related fees and taxes, up 77% from the previous year.

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