Sales of recreational marijuana could surpass medical marijuana as early as 2018, according to a new report from Marijuana Business Daily.
MBD estimates that retail sales for recreational and medical marijuana combined will be between $3.5 billion and $4.3 billion in 2016. That would mean growth of 17%-26% over last year’s sales. Recreational marijuana will account for roughly $1.4 billion to $1.7 billion in sales in 2016, and MBD projects sales will climb to $2.6-$3.8 billion by 2018. While medical marijuana sales are expected to grow as well, it is only forecast to be in the range of $2.3-$4.0 billion by 2018.
To put this in perspective, in 2015 legal cannabis outsold Girl Scout cookies. The total cannabis market in the U.S., which includes illegal sales, is estimated to be in the range of $40-$45 billion. This means the marijuana market is bigger than craft beer, wine and organic food.Cannabis Industry: Up to $44B Economic Impact Annually by 2020. (Credit: Marijuana Business Daily)
One of the most surprising success stories of the legal cannabis industry has been the popularity of cannabis infused products. Edibles and concentrate sales are growing monthly and now represent 30% of total sales. Plus, they are very profitable businesses. Of the infused product manufacturers, 27 percent are very profitable, 27% say they are modestly profitable and 37% are breaking even. Only 9% are losing money. 24% of the infused product manufacturers operate in at least 2 states and these early adopters are expected to be the winners when competition forces consolidation.
SOURCE: http://www.forbes.com, by DEBRA BORCHARDT