[March 23, 2017] |
|
NEW REPORT: Even if Trump Cracks Down, Legal Marijuana Industry's 27% Annual Growth Rate Through 2021 Remains Unchanged; Projected to Rise from $6.7B to $22.6B
Today, Arcview
Market Research, the leading publisher of cannabis market research,
released the full 200+ page 5th edition of The State of Legal
Marijuana Markets which projects that the state-legal cannabis markets
will continue to grow at a 27 percent CAGR through 2021, despite
conflicting signals from the Trump administration. The report is the
industry's most robust ever released with market projections that rely
on a proprietary bottom-up point of sale foundation with millions of
individual consumer transactions from dispensary partners in the largest
legal cannabis markets across the country created by Arcview's data
partner, BDS
Analytics.
The report details how the two biggest drivers of growth are the passage
and subsequent implementation of new adult-use laws and growth of
branded product subcategories, such as vape cartridges, edibles, and
other alternative consumption methods.
"While the uncertainty created by the mixed signals coming out of the
Administration may cause a temporary dip in some valuations of cannabis
companies and some more risk-averse institutional investors and
multinational companies may continue to stay on the sidelines, it won't
impact the growth of the market much at all," said Troy Dayton, CEO of
Arcview Market Research. "No matter what the administration does, states
will continue to issue cannabis licenses to a long line of applicants
and licensed cannabis outlets will continue to have long lines of
consumers ready to purchase this product from regulated establishments."
Additional findings from the report include:
-
Legal consumer spending across North America grew 34 percent to $6.7
billion and can be expected to grow at a 27 percent compound annual
growth rate (CAGR) over the next five years, from $6.7 billion in 2016
to $22.6 billion in 2021;
-
North Americans spent $56.1 billion on legal and illicit cannabis
products in 2016, about half of the $105 billion they spent on beer.
But only $6.7 billion of that was spent legally and 87 percent of that
came from just five states and Canada;
-
Growth in legal cannabis sales has already eroded the illicit market.
This erosion will greatly accelerate in 2018 with the arrival of
legalized adult-use programs in North America's two biggest markets,
California and Canada. Meanwhile, the 20 states without legal cannabis
programs contributed nothing to the accelerating erosion of the
illicit market;
-
Voters in Florida, Arkansas, Montana, and North Dakota passed medical
cannabis initiatives. This means that 63 percent of Americans can
legally obtain cannabis with a doctor's recommendation;
-
Voters in California, Massachusetts, Nevada, and Maine passed
adult-use measures. This more than tripled the portion of Americans
that will be able to purchase cannabis without a doctor's
recommendation in their home state to 21 percent;
-
Adult-use spending will surpass medical spending for the first time in
2019. By 2021, $14.9 billion (66 percent of total revenue) will be
generated through adult-use programs and $7.7 billion (34 percent)
through medical use;
-
Compound annual growth rates above 50 percent since adult-use
legalization in Colorado and Washington drew significant new segments
of the investment community into the legal cannabis industry in 2016,
driving triple-digit gains in public stocks and double-digit gains in
capital raised by operating companies and a growing group of
cannabis-focused investment funds;
-
Pre-rolled product growth sales went up 63 percent in CO, 318 percent
in WA and 236 percent in OR; the growth of concentrates and edible
products (including in pill form) were similarly well-above the growth
of flower in all three states
-
In the relatively mature Colorado market, there are now hundreds of
branded products on shelves. The top five brands accounted for nearly
half of all edible sales, the top 10 brands for more than two-thirds,
and the top 20 for almost 90 percent; Sales of dried cannabis flower
still accounted for more than half of all cannabis product sales in
2016 in Colorado, Oregon, and Washington.
-
Volume of flower sold continued to grow at a rapid pace throughout
2015 and 2016, while average retail price per gram has declined
steadily.
The report also includes 30 in-depth state profiles.
"The explosion in the number of brands and products is dizzying," said
Arcview Editor-in-Chief Tom Adams. "When the #1 concentrate brand in CO
grows 84 percent but its market share percentage remains constant it
becomes clear we are in a remarkable business boom. It reminds me of
1998, when Google (News - Alert) was just one of dozens of search engines, or 1988 when
Blockbuster was just one of dozens of video store chains; future market
leaders are just now being launched."
The executive summary for the 5th edition of
the State of Legal Marijuana Markets is available for free and the full
digital and hardbound report is available for purchase for $597 at www.ArcviewMarketResearch.com.
About The Arcview Group: Founded in 2010, The Arcview Group
is responsible for a number of groundbreaking ventures in the cannabis
industry. Arcview Market Research is the first and most oft-cited
publisher of market research on the cannabis industry. The Arcview
Investor Network includes 625+ dues-paying accredited investors who have
put more than $106 million behind 139 companies. Arcview is a partner in Canopy,
a seed-stage mentor-driven business accelerator. Arcview is also
co-founder of Cannasure
Insurance Services, the leading provider of business insurance to
the cannabis industry. Arcview's upcoming Investor Forum for high net
worth accredited investors will take place May 1-3, 2017 in Austin, TX.
For more information on the event and Arcview Investor Network, please
click here.
Prior authorization for press access is required. For more
information or media inquiries, please visit www.arcviewgroup.com.
About BDS Analytics: BDS Analytics helps cannabis industry
executives make quality decisions based on the best data by capturing
millions of transactions from dispensary point-of-sale systems and then
mining that data for the most actionable insights. For more information
please visit http://www.bdsanalytics.com/.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170323005546/en/
[ Back To TMCnet.com's Homepage ]
|