It is basic to consider the average market size of the cannabis industry when calculating industry growth. The term $20 by 20″ is closely linked to the U.S. Cannabis market. A recent estimate from cannabis industry experts, the Brightfield Group, states that the cannabis industry will reach $73.6 billion by 2027. In 2020, researchers are now considering revising these figures.
According to the pioneer in business knowledge for the cannabis industry (New Frontier Data), the market forecast for adult use and medical markets has been resituated. It is estimated that the legal cannabis market will reach $24.1 billion by 2025, accompanied by a compound yearly development rate of 16%.
Companies like RBC Capital Markets, an investment bank under the Royal Bank of Canada, are issuing notes to clients telling them about the fast development in the cannabis industry. The notification, made by Nik Modi, shows how cannabis trades in the U.S. are comparing with alcohol and cigarettes. This is all due to the fast development that has taken place over the last decade.
The present state of U.S. industry, which involves both legal and illegal deals, quickly makes strides over other high-end products like wine, whiskey, and beer. Surprisingly, we still don’t know the ratio of the $50 billion made up by illegal deals.
The vaping industry has also seen a high increase. According to Market research group Euromonitor that the number of adults vape users will increase to 55 million by 2021.
The current state of the U.S. cannabis market is leading most high-end consumer products like alcohol. However, illegal sales have made it difficult to foresee whether the $50 billion contains just legal deals.
So why is the U.S. cannabis industry looking very promising?
Right off the bat, it’s only the popular opinion of the plant. A time passes, Americans have ended up supporting the legalization of different forms of cannabis.
The surveys over the years have highly supported the legalization of cannabis. According to recent survey results from Gallup, 66% of Americans are highly in favor of cannabis legalization, which is the highest cannabis poll.
Also, the vast majority of Republicans are in support of legalization, which is good news. Furthermore, 51% of older adults highly supported cannabis legalization. The number of Democrats in support of cannabis reached 71%, while 78% of adult voters want cannabis legalization at the Federal Level. Nonetheless, Congress will need to time to analyze these polls.
The Pew Research Center found that cannabis enthusiasts depend on age group, although it has been booming among all age groups in recent years. Undoubtfully, most adolescents acknowledge that it should be legalized, and the qualification in rate is suitable against older age gatherings. This is ordinary, given the considerable publicizing endeavors to stop the stigma around cannabis.
According to New Frontier Data reports, by 2025, most states will execute laws authorizing the utilization of cannabis, which will further build the projected development rate. Most states are now passing different recreational, and medical marijuana laws.