What Are the Largest Cannabis Markets in the United States?
August 3rd, 2018
The United States’ legal cannabis industry is gearing up for immense growth. A total of 30 U.S. states have now legalized the plant for medicinal use and many more expected to follow suit. Let’s not forget about the nine states that have permitted the plant for adult-use, too.
Home to some 325 million people, the United States of America boasts a strong economy and perhaps the world’s most addressable cannabis market. With more U.S. states embracing cannabis reform and scientists unearthing the plant’s medicinal benefits, it’s not really surprising that the U.S. cannabis sales are fast-approaching an all-time high.
America is Dominating the Global Cannabis Market
By 2025, the global cannabis market is expected to pull in $150 billion, with the U.S. contributing to a significant portion of that figure. Based on statistics gathered by Pew Research Center, 61 percent of Americans say the use of cannabis should be legalized. This is in indication of a rapid shift in opinion on the five-fingered green plant. Back in 2000, a mere 31 percent of the population supported cannabis legalization.
According to the 2017-2018 edition of the Cannabis Benchmarks’ Annual Review and Outlookon the U.S. cannabis market, the market’s wholesale value in 2017 peaked at $5.7 billion; a figure that is four times larger than the value of the U.S. tobacco market and almost as big as the wheat market!
Cannabis Stocks are Skyrocketing in These U.S. States
If you’re an investor with your eye on the prize, make sure you seek out the most profitable cannabis markets that Uncle Sam has to offer. The following weed-friendly places on the map are contributing to the bulging U.S. cannabis market:
California –Of course, The Golden State is featured on this list. California’s cannabis market is worth billions of dollars and just last year, $3 billion was spent on cannabis in the state. Fast-forward to the year 2022, and expenditure is forecast to hit $7.7 billion.
Colorado –In 2017, Coloradoans spent $1.5 billion on both recreational and medicinal cannabis products. By 2022, an additional $1 billion will be spend on the green stuff. While the market may not be growing as quickly as California’s, it is a lot more mature, having legalized the plant for recreational use six years ago.
Arizona – The medical cannabis market in Arizona is well-established. Last year, consumers forked out $461 million on cannabis-based products. Recreational cannabis has not yet been legalized in the State of Arizona, but ArcView Market Research and BDS Analytics predicts that it may happen in 2021. Until then, the state will benefit from medical cannabis sales, which are projected to hit $1.2 billion over the next four years.
Florida– The cannabis industry in Florida is expanding at a rapid rate. So much so, that it could be worth $3 billion by 2020. Many cultivators are in the process of expanding their growing facilities. After all, Florida’s MMJ market will account for 50 percent of U.S. nations by 2020. What’s more, Orlando-based attorney John Morgan has pushed to get recreational cannabis on Florida’s 2020 ballot.
Washington – If we gaze into the future, Washington’s cannabis industry could be raking in the cash. Cannabis spending could top $1.5 billion within the next few years, with output expected to be just below $3 billion. The cannabis market in Washington is projected to grow with a compound annual growth rate (CAGR) of 23 percent from 2016-2020.
Michigan – Did you know that Michigan boasts one of the biggest medical cannabis markets in the U.S.? It’s true. A total of $812 million was spent on medical cannabis in 2017 and, if residents choose to legalize weed for adult-use in November, state cannabis spending could pull in $1.4 billion by 2022.
Massachusetts –In July 2018, cannabis was legalized for recreational use in The Bay State. Now, the market is in full force and is forecast to pull in over $1.2 billion by 2022. Total output will be almost $2.3 billion, so watch this space.
Investing in the U.S. Cannabis Market
The growth rate for cannabis is in a league of its own. It is one of the fastest-growing industries on the planet. One of the major appeals for investors is the diversity in cannabis stocks that are currently trading on over-the-counter (OTC) exchanges. Should you be interested in investing in cannabis stocks, remember that many businesses in the cannabis sector lack access to financial institutions. Nonetheless, it is possible to get a sizeable return on investment (ROI) if you keep a close eye on cannabis stocks. Moreover, the industry comprises more than just cannabis cultivators. Suppliers and ancillary cannabis businesses make up a major segment of the market, so you have plenty of investment options at your disposal.
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