OAKLAND, Calif., Jan. 26, 2015 (GLOBE NEWSWIRE) -- ArcView Market Research released the executive summary to the 3rd edition of the State of Legal Marijuana Markets report finding that the U.S. market for legal cannabis grew 74% in 2014 to 2.7 billion, up from 1.5 billion in 2013 making it the fastest growing industry in the U.S. The report also shows that if trends continues and all states legalized marijuana the total market size would top 36.8 billion, making it larger than the organic food industry which is 33.1 billion according to Nutrition Business Journal.
The report shows that the main driver of projected growth over the next five years will be the passage of more state laws allowing regulated cannabis sales. The report predicts that 14 more states will legalize adult use and two more states will legalize medical use over the next 5 years. These new markets plus maturation of the existing markets will create a 10.8 billion annual market potential by 2019.
The State of Legal Marijuana Markets 3rd Edition is the most comprehensive and sophisticated analysis of legal markets ever undertaken. The first two editions of this report are the most oft-cited reports on the industry.
Other findings of the report include:
Data Highlights from the Report:
- California is still the largest legal cannabis market in the country at $1.3 billion.
- Consumers purchased $370 million worth of cannabis products under the new Adult-Use regulations in Colorado and Washington
- More than 1.5 million consumers purchased cannabis legally from a retail medical or Adult-use store in 2014
- Full legalization of marijuana in Oregon and Alaska will add a combined $275 million in retail sales to the market in their first full year of operation. AMR cannot predict market size in the District of Columbia because of uncertainty of congressional action.
- In Colorado, 64% of the total demand for cannabis in the state is being met by the retail medical and adult-use markets, the highest in the nation.
- Arizona's was the fastest growing major marijuana market, expanding from $35 million in 2013 to $155 million in 2014.
Trend Highlights from the Report:
- Investment in all businesses related to the cannabis industry skyrocketed in 2014 leading to a fast maturation of a previously nascent industry
- Businesses in states with highly restrictive patient access and arduous regulatory systems like Illinois, New Jersey, and Delaware are not likely to be particularly profitable as long as the market constraints remain.
- Donations to the political efforts to legalize cannabis have remained constant despite the vastly expanded opportunities for passing legalization in more states making lack of political funding one of the top risks facing the future of the cannabis industry.
- Cannabis concentrates and various infused products are quickly gaining market share at the expense of the traditional cannabis flower market
- National brands are beginning to emerge and spread to various states via multi-state licensing arrangements for their brand IP
"The Legal Marijuana Markets report shows cannabis is the fastest growing industry in the U.S.", said Troy Dayton, CEO of the ArcView Group, the publisher of the report. "Entrepreneurs and private investors are flocking to these markets. While there is a lot of hype around the marijuana industry, our report provides hard data and in-depth analysis for sophisticated players looking to capitalize on the seismic shifts occurring in the regulatory environment."
"I've studied the growth of the nutrition and the organic food industries for years. I believe the cannabis industry will be an even bigger opportunity. Yet, there are risks associated with a fragmented and nascent industry that is growing so fast. Those with insider analysis and actionable data will be best positioned to mitigate those risks and maximize returns. That's what we've distilled in this report." said Patrick Rea, former editor of the Nutrition Business Journal and Executive Editor of the report.
The executive summary of the report is downloadable for free at legalmarijuanamarkets.com and the full report can be pre-ordered for $495 and will be available in a few weeks. The report's sponsors include cannabis industry leaders The National Cannabis Industry Association, Cannasure Insurance Services, Canna Advisors, Denver Relief Consulting, and CanopyBoulder.
ABOUT THE ARCVIEW GROUP
The ArcView Group is an investment and research firm based in Oakland, California founded by cannabis industry and advocacy pioneers Troy Dayton and Steve DeAngelo. In edition to ArcView Market Research which is the first and most oft-cited market report on the cannabis industry, The ArcView Group is responsible for a number of cannabis industry innovations including the ArcView Investor Network which is responsible for more than $20 million in investments into more than 40 companies, Cannasure Insurance Services which is the first business insurance provider built for the cannabis industry, and CanopyBoulder, the first seed-stage mentorship driven business accelerator set to launch this year.
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