GreenWave Advisors Sees Marijuana Industry Hitting $25B by 2020
November 6th, 2015
Feature Stories, Policy
The U.S. marijuana industry could reach $25 billion by 2020, according to a new report by GreenWave Advisors, driven by the ongoing legalization of the drug across the country. After initially pegging the market at $21 billion, the cannabis research and advisory firm raised its outlook for the market, citing better-than-expected recreational use product sales in Colorado and Washington State and the analysis of other regulated markets.
“The legal marijuana industry has continued to grow at a pace that has substantially exceeded our initial projections,” said Matt Karnes, Founder of GreenWave Advisors, LLC. “As public support for legalization continues to mount (notwithstanding the convolutions of the Ohio ballot initiatives) we believe that 2016 may be a watershed year as several states including Arizona, California, Florida, Maine, Massachusetts and Nevada are expected to enact or expand marijuana use permissions.”
In the near-term, the firm projects that marijuana sales will increase 50% in 2015 to $4.8 billion from $3.2 billion in 2014. These sales could dramatically accelerate past the $25 billion market in 2020 if the federal government ends prohibition, although the likelihood of that happening in the near-term remains low. In that case, sales of medical and adult use sales could exceed $35 billion in the first full year of a federally legalized market.
Support for the legalization of marijuana has been on the rise over the past several years, while conservative politicians like Donald Trump have softened their stance on the drug. According to a recent Gallup poll, which analyzed health surveys from around the country, 44% of Americans have used marijuana and 58% of Americans believe it should be legalized. These are the highest levels on record and ties 2013 results.
GreenWave Advisors, LLC is based in New York City and is the premier independent financial research and advisory firm serving the emerging cannabis industry. Some assumptions used in the firm’s analysis were validated with wholesale market price assessments provided by Cannabis Benchmarks™, a division of New Leaf Data Services, LLC.
Follow Us on Social Media
About CFN Media
CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.
CFN launched in June of 2013 to initially serve the growing universe of publicly traded marijuana companies across North America. Today, CFN Media is also the digital media choice for the emerging brands in the space.
Disclaimer: Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: http://www.cannabisfn.com/legal-disclaimer/.