- Daily Zen
ArcView Group which inks the most-frequently cited figured and forecasts available for legal marijuana in the US, co-released a comprehensive yearly report with cannabis industry data analytics firm New Frontier. The report confirms that legal marijuana is the fast growing industry. A study from the Tax Foundation found nationwide legalization of cannabis could generate up to $28 billion in tax revenues for the federal, state, and local governments. We’re halfway through 2016, and marijuana tax collections in Washington and Colorado have exceeded initial estimates. In fact, legal marijuana sales are skyrocketing. The final tally of tax records from some states shows that it has quickly become the fastest growing industry in the US.
The 2015 figures of legal cannabis sales are a 45% jump from the $700 profit in 2014. The increase in revenue is primarily driven by recreation marijuana sales, which reached $600 million. Medicinal marijuana, on the other hand, yield $400 sales.
Colorado’s marijuana industry has generated over $270 million in the first quarter of 2016 alone. In fact, it has been widely known as the poster child of marijuana profits. In past year, the number of licensed pot growers in the state has increased to 14,000. The state boasts of more than 300 recreational marijuana shops, since the few dozen stores that opened in January 2015.
District of Columbia and Alaska, where marijuana has been fully legalized for recreational purposes, are also flaunting profits. So is the case with Oregon and Washington, which are showing strong signs of a profitable year. The state of Washington is planning for more growth in tax revenue from the mushrooming business. It expects to yield $154.6 million in taxes alone and eventually exceed $1 billion by 2020. In 2015, dispensaries in Washington sold an estimated $257 million worth of pot-products.
Meanwhile, Oregon has projected $300 million worth of market. It began collecting 25% tax from sale of recreational marijuana sales. In January this year, the sales from 300 dispensaries touched $14 million. With the introduction of the sales tax, it reported a tax revenue of $3.48 million.
California, which has a well-established market for medicinal marijuana produces 60 percent of the marijuana consumed in the US. Estimates suggest that cannabis is the biggest cash crop in the golden state. It’s the next largest commodity behind milk and cream. In fact, in some parts of the US, marijuana sales have beaten retail sales of milk and wine. By 2020, legal marijuana sales will account for more than half of the overall market. It would represent growth of over 1,150% for recreational marijuana sales by 2020.
More than 80 percent of Americans live in a state that allowed recreational, or medicinal use of marijuana. While marijuana is federally illegally, an increasing number of business owners are prohibited from reducing the cost of marijuana, which keeps small businesses from making any substantial profit.
In the coming four years, legal marijuana sales will have reached $21.8 billion. All other industries are paling in front of the fastest growing industry. The number, by comparison, is bigger than the National Football League, which yield $12 billion of revenue in 2015 and is hoping to reach $25 billion by 2027.