Marijuana worth $6.7 billion was legally sold in the US in 2016, following the legalisation of cannabis in a number of states. Four more states will soon have fully legal markets for recreational consumers.
This was contained in a new report by ArcView Market Research – a firm which specialises in the cannabis industry.
The report says the market generated $5.4 billion in sales in 2015, noting that the growth rate, which is around 30 per cent year-over-year, “is as explosive as any industry in the country”.
The report also observes that “the difference is that there is no reason to think the bubble will burst on the marijuana industry. There’s a long way to go before the market even approaches saturation, especially when you consider that only about one-fifth of the American population has access to legal cannabis. With so much room to grow, it is hard to imagine the industry’s growth slowing anytime soon unless the government interferes”.
It further noted: “With 2016’s $6.7 billion in sales and 2015’s $5.4 billion, the marijuana industry has produced more than $11 billion in two years. This is remarkable for a number of reasons, particularly for an industry that is truly still in the incubation stage.”
The report forecasts a compound annual growth rate of 25 per cent. That means that by 2021, the marijuana industry will be generating sales of more than $20 billion per year.
Also, a recent report by the Washington Post said if the US government were to legalise marijuana for the entire country, sales could reach as high as $35 billion by 2020.
There are, however, concerns that the administration of President-elect Donald Trump may have a different view on legalisation, as the incoming Attorney General, Jeff Sessions, is not particularly friendly toward cannabis.
But, marijuana legalisation advocates are also bracing up for the challenge, with DCMJ, an organisation that successfully pushed for the legalisation of marijuana in Washington, planning to offer 4,200 free joints to anyone willing to take it on Trump’s Inauguration Day.
Trump himself has remained mum on the issue of marijuana, but the group said it would be willing to call the event off if Trump reached out to it to talk about the issue
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Nigerian government should take a cue from that. Illegal sales and abusive use of it in Nigeria deprives those who might actually need it for medical reasons the opportunity. It can be well regulated and managed by the government if made legal.