Cannabis market on track to reach $43 billion in 2024
BOULDER, Colo. — January 16, 2020 — Global cannabis sales rose 48% to $15 billion in 2019, driven by growth in sales in Canada and seven U.S. states that saw sales more than double.
Continued consumer adoption in maturing markets such as Colorado and new adult-use markets including Massachusetts contributed to 45% growth in adult-use sales to $8.9 billion. However, medical-only states and countries actually grew faster – up 54% growth to $6.2 billion. The United States saw 81% of spending in 2019, although superior growth in the rest of the world will continue balancing the market across the US, Canada, and Europe through 2024.
“These stunning growth numbers prove the negative stigma of cannabis is coming to an end in the US. What’s incredible is the realization that so much potential growth remains both domestically and globally,” said Troy Dayton, Founder and Chief Strategy Officer of The Arcview Group. “With sales jumping nearly 50% in an industry with only a handful of markets online, this report quantifies why there’s so much anticipation from producers and shrewd investors waiting for national and international markets to open up or mature. The fallout in public market valuations is not trending with the tremendous growth curve of this exploding market. That discrepancy represents a unique and time-bound opportunity for investors.”
Despite strong growth, regulatory challenges created headwinds that artificially hampered
business activity in California, Canada, and numerous other markets.
“The disconnect between investor sentiment and the facts on the ground is as dramatic as anything I’ve seen since the dot.com stock crash of 2000, which happened just as the internet caught fire with consumers,” said Tom Adams, Editor-in-Chief of Arcview Market Research and Managing Director of BDS Analytics Industry Intelligence. “Five billion additional dollars were spent on legal cannabis in 2019. That’s bigger than the entire legal cannabis market was in 2015.”
Among the key points in the forecasts:
- Sales in 2020 are forecast to increase by 38% driven by growth in established markets and continued geographic expansion, including Illinois’ recreational market opening;
- Despite medical spending outgrowing adult-use spending in 2019, adult-use markets will be the primary drivers of global market growth through 2024;
- More than $400 million in Massachusetts adult use sales in the first year of an adult use East Coast market;
- Florida continues to perform strongly with over $650 million in sales despite being a medical-only market;
- New consumers continue to enter the market at a rapid pace with the development of new products and social acceptance
About Arcview Market Research:
Since 2011, Arcview Market Research has published over 20 reports analyzing and forecasting the rapidly evolving cannabis space. Arcview’s flagship annual report, The State of Legal Marijuana Markets has become the industry standard for market analysis and data in the sector. In 2017, Arcview Market Research partnered with BDS Analytics to add more robust point-of-sale data and consumer insights to its offerings. Arcview Market Research is a project of The Arcview Group. Founded in 2010, The Arcview Group is responsible for a number of groundbreaking ventures in the cannabis industry. The Arcview Investor Network includes more than 600 accredited investors who have put more than $235 million behind 200 companies. In 2015 Arcview became a partner in Canopy, the first 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. Forbes Magazine recently named Arcview among the top 5 financial firms in the cannabis sector.
About BDS Analytics:
Headquartered in Boulder, Colo., BDS Analytics provides businesses with comprehensive, actionable, and accurate cannabis market intelligence and consumer research. The company provides a holistic understanding of the cannabis market by producing insights from dispensary point-of-sale systems through its market-leading GreenEdgeTM platform, driving consumer research with its Cannabis Insights Group, and generating market-wide cannabis industry financial projections through its Industry Intelligence Group. To learn more about how you can utilize BDS Analytics’ superior market research, please visit www.bdsanalytics.com.
North 6th Agency (for BDS Analytics)
KCSA (for Arcview Market Research)