New Report Shows Marijuana Market Could Hit $18 Billion by 2021, Even if Trump Challenges Industry

Analyst Matt Karnes believes that California will account for 40% of the market and that additional states will continue to come online.

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September 11, 2017
Forbes.com
Business and finance News

Even if President Trump actively challenges the recreational marijuana market, Greenwave Advisors forecasts that the market will hit $18 billion by 2021. If this doesn't come to fruition, the industry is projected to reach a whopping $30 billion, which is predicated upon every state and D.C having a medical only or fully legal market.

Analyst Matt Karnes supports these projections for his new report by noting that 2016 retail marijuana sales in the U.S. were approximately $6.5 billion, an increase of 35% from 2015's $4.8 billion. “In 2017, we expect growth of 18% to $7.7 billion as new medical use markets come online,” he said. He also believes that California will account for 40% of the market and that additional states will continue to come online.

These numbers are driving increasing capital investments into the sector. Even with all the risks associated with this group, the average deal size has jumped from half a million in 2012 to $2.2 million in 2016. 38% of these investing dollars has come from venture capital and angel investors. Since 2012, $1 billion has flowed into the industry.

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