This voting year California residents will be one of the many states deciding whether or not to legalize marijuana for residents 21 and over. Gangapreneur explains the surprising economic projections made if California and the rest of the country were to vote yes.
U.S. Cannabis Industry Could Grow to $44 Billion by 2020
By Adam Lozier
The cannabis industry in the United States could grow to be a $44 billion industry by 2020 according to current legalization and economic trends.
Data released in the 2016 Marijuana Business Factbook, published by Marijuana Business Daily, indicate that the yearly economic impact of the U.S. cannabis industry will grow from $14 billion-$17 billion this year to between $24 billion and $44 billion in 2020.
The publication’s projections reflect the compounded effects of legalization throughout the nation. As the industry becomes more and more palatable to communities around the nation, it creates a ripple effect of job growth, tax revenue, and legalization.
The estimates garnered from the data aim to reflect the broadest possible impact of the cannabis industry’s growth. The data is based on current recreational sales and prices. For every dollar spent on retail cannabis, three dollars in economic benefit is created.
According to the report, 2016 will see retail cannabis sales reach between $3.5 billion and $4.3 billion — that would be a growth of between 17% and 26% from last year. Furthermore, total sales of recreational cannabis could overtake medical sales as soon as 2018.
Overall, the future for the cannabis industry is bright, and this fall could prove big for the legalization movement. California, Nevada, and Massachusetts are among those states that could legalize recreational marijuana in November, and voters in Florida and Ohio have the chance to legalize medical cannabis as well.