Adult-use cannabis sales in the U.S. could top $41 billion by 2025

https://weedistry.com/2017/07/04/7-reasons-marijuana-is-patriotic-af/

Bethan Rose Jenkins, Cannabis News Writer/Editorial

A leading provider of cannabis industry business intelligence, data and analytics has just published a brand new report on the state of the U.S. adult use cannabis market. 

New Frontier Data, which is acknowledged as the most trusted authority of its kind, has proudly announced the release of a unique update for the “U.S. Cannabis Report: 2020-2021 Industry OutlookCannabis in America for 2021 & Beyond: A New Normal in Consumption and Demand.

According to the data firm, the fresh insights contained in this report are a reflection of industry changes that have transpired following the recent passing of six cannabis ballot initiatives in five states. Additionally, the researchers spent time analyzing cannabis consumer behaviors stimulated by the COVID-19 pandemic. 

“History is happening before our eyes as the events of 2020 are fundamentally redefining the U.S. cannabis market and will continue to do so for years to come,” said Giadha A. DeCarcer, founder and CEO of New Frontier Data. “The pace and scale of growth the industry is experiencing is a compelling proof point that cannabis is evolving into a mainstream consumer category.”

U.S. Cannabis Report update presented in partnership with Merida Capital Holdings

This “special update” to New Frontier Data’s report wouldn’t have been possible without Merida Capital Holdings the company that collaborated with analysts to provide valuable data for the report.

Merida is a leading private equity firm specializing in the cannabis space. Thanks to the operating company’s technology, data and infrastructure, proving the economic impacts of the ever-evolving U.S. cannabis market was accomplished by Merida with accuracy.

“In 2021, we will likely see the legal cannabis market mature even further as it continues to cannibalize the much larger illicit market. This stratospheric growth presents incredible investment opportunities,” says Merida’s Managing Partner Mitch Baruchowitz. “True to our motto ‘Responsible Investing Across the Cannabis Ecosystem,’ we are honored to partner with New Frontier Data to offer valuable industry research and deeper analytical insights so investors and consumers alike can make informed decisions.

Key takeaways from the U.S. Cannabis Report update:

  • Prompted by growing consumer demand for medical and adult-use cannabis, U.S. legal weed sales are expected to inflate at a compound annual growth rate (CAGR) of 21 percent. If predictions are correct and the market surges to more than $41 billion by 2025, this would be a substantial increase from the $13.2 billion worth of sales that were recorded in 2019.
  • As much as 39 percent of annual cannabis demand in the U.S. will come from legal market purchases by the year 2025. This is 17 percent projected growth from last year. 
  • Analysts predict that legal annual medical cannabis sales will increase at a CAGR of 19 percent through 2025. If predictions are correct and the market climbs to more than $16.3 billion, this would be $5.9 billion growth since 2019.
  • Analysts predict that legal annual adult-use sales will grow at a CAGR of 23 percent to $25.1 billion by 2025; a huge jump from $7.4 billion in 2019.
  • As consumers gain more streamlined access to legal cannabis markets that are transpiring across the U.S., extra revenue to the amount of $1.2 billion is predicted to be generated by 2022.
  • Half of October’s cannabis product sales in the U.S. came from the flower segment, stimulated by the coronavirus pandemic. Between March and October, when the pandemic hit hardest, monthly consumer expenditure increased by an average of $149; 14 legal markets were analyzed in the report.

You can download an update to the U.S. Cannabis Report: 2020-2021, titled, “Cannabis in America for 2021 & Beyond: A New Normal in Consumption and Demand,” by clicking here