Exactly How Much Are People Spending on Marijuana Anyway?
If you take a step back and just examine the landscape out there, you can only come to one conclusion. The cannabis industry will probably end up the largest business in the world.
Do you think I am exaggerating?
Recreational marijuana is only legal in a few states here in the US. Small sample size, yes, but we can just look at some numbers to get an idea of what will happen if/when the entire country legalizes recreational marijuana.
Let us take Colorado, for example. They have recently hit a milestone on marijuana sales. This is from a report from the Colorado Department of Revenue. Colorado cannabis sales surpassed $1 Billion during the first eight months in 2018.
One billion dollars in eight months. This is just one state. Pretty crazy, if you ask me.
The numbers are holding steady. In 2014, which was the first year of legalization, marijuana sales reached 684 million dollars. In 2017, the state had record cannabis sales of more than $1.5 Billion.
For that $1 Billion of sales for 2018, the tax revenue generated was $200 million.
Once again, this is just one state.
According to a recent report that was released by Arcview Market Research, worldwide spending on marijuana is expected to reach $57 Billion by 2027. This includes both recreational and medical marijuana. The US will make up most of the spending. This will jump from $9.2 Billion in 2017 to $47.3 Billion in 2027.
South America will also be right there as Legal marijuana will grow to $776 Million in 2027, led by Brazil, Argentina, Uruguay and Peru.
I have not been as excited about a new industry and its growth since the birth of Hip-Hop in the early to mid 1980's.