Cannabis Finds Its Place in the Sun in the US



03/16/2016 3:18 PM


Website Marijuana Business Daily, dedicated to the market of marijuana, has published a study that the US market marijuana could reach the volume of $ 44 billion by 2020. This forecast implies continuation of current trends in the legalization of marijuana, and development of the relevant business. Even in the worst case, the market will grow quite considerably, up $ 24 billion. According to experts, nothing can stop the spread of marijuana in the United States, not even possible rise to power of a president, who is the enemy of its legalization.



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According to Marijuana Business Daily’s study, volume of this market in the US could reach $ 44 billion by 2020, if current trends of the legalization of marijuana continue, followed by development of the relevant business. According to the website’s assessment, the US market marijuana range from $ 14 billion to $ 17 billion in 2016. By 2020, its volume will swing up to $ 24 billion to $ 44 billion, according to the chief editor of Marijuana Business Daily’s Chris Walsh: "We have witnessed emergence of this business, which is becoming a major economic force. These numbers, which we consider conservative, show not only significance of this industry in the US economy now, but also that it will become much more important."

In his study, Marijuana Business Daily’s experts tried to assess the significance of this industry to the US economy, including the proceeds of marijuana-sellers, duties and taxes, new jobs, and so on. The study estimated retail sales of marijuana as a medicinal and in leisure purposes. Sale of marijuana for medicinal purposes are allowed in 23 states of the country and Washington. Washington State and Colorado were the first to allow storing cannabis for personal use - it happened in November 2012. Leisure use of marijuana is legal in four states - Colorado, Washington, Alaska and Oregon. According to experts, it will be legalized in 14 states in the next five years.

Last October, the Council for revenue forecasting and economic activity of Washington published a forecast. According to the document, taxes from legal sale of marijuana in their state could reach $ 1.1 billion in the next four years. This corresponds to about 1.5% of total revenues in the state budget. According to Marijuana Business Daily’s study, every dollar, spent by consumers at the retail sale of marijuana, gives economic effect of $ 3. Retail sale of cannabis in the past year totaled $ 3-3.4 billion. According to the forecasts, they will increase by 17-26%this year, and range from $ 3.5 billion to $ 4.3 billion. If the legalization of marijuana in the United States continues, then sales could reach $ 8 billion in 2018 year, and $ 11 billion in 2020.

According to Mr. Walsh, nothing can stop spread of marijuana in the United States. "Perhaps in January, we will get a president, who opposes legalization of marijuana, and even then it is unlikely that the situation will develop in the opposite direction. The genie is out of the bottle, half the states legalized sale of marijuana for medical purposes, and leisure-time use is going to be legalized there, too. Anyone who tries to stand in the way of this movement, will face difficulties,"- he said.

 


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