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Marijuana is set to be $166 billion market

Marijuana used to be a taboo topic. Now, it’s so mainstream that it has become a $166 billion market.

The “plant” has Wall Street and its investors seeing gold, its long-term growth potential promising to be one of the most profitable products in the world market today.

Don’t believe it?

Last year, legal cannabis spending hit $12.2 billion globally.

The 2019 Update to The State of Legal Marijuana Markets (SOLMM) report from Arcview Market Research and BDS Analytics shows a staggering jump from worldwide legal cannabis spending.

The industry experienced a significant jump from merely $9.5 billion in sales in 2017.

Legal marijuana manufacturers have an even better reason to rejoice:

Experts believe that legal cannabis sales are projected to grow 38% in 2019.

Arcview Market Research now forecasts that sales will accelerate in 2019, jumping to $16.9 billion.

They also believe that spending growth will hit the roof at $31.3 billion by 2022.

CEO of The Arcview Group, Troy Dayton says:

“The entry of one of the largest alcohol and one of the largest tobacco companies into the cannabis sector as well as the Congressional passage of a Farm Bill legalizing growing hemp in the United States, were key to making 2018 a year of historical importance.”

“This year, we also saw two of the world’s three largest legal medical markets – California and Canada – transition to legal regimes that allow all adult consumers to buy cannabis, while voters in the other top-3 market – Michigan – approved a ballot measure to do the same.”

Imagine if more and more countries legalize the use of cannabis. Right now, more than 40 countries are giving the go-ahead for medical marijuana.

Wall Street clearly has good reason to expect big things from this industry.

So what are the possibilities?

Experts are optimistic pot sales will be so high in the future, it may well disrupt other industries like alcohol, tobacco, and even health and wellness.

According Tom Adams, managing director, and principal analyst at BDS Analytics:


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“Despite the speed bumps in Canada and California, the basic story line prompting an explosion of investment in the industry in 2018 remains intact.

“The gradual legalization around the world of a plant which humans have been happily consuming for millennia is creating one of the largest industry-growth phenomena in history.”

And more and more high-profile investors are jumping in the wagon.

Just two weeks ago, Bank of America’s Christopher Carey initiated coverage on 4 legal cannabis stocks. He outlined a variety of scenarios for the future of the cannabis industry.

He estimated that the industry could one day reach $166 billion in annual sales. According to him, the United States would be holding approximately third of the market – which means a roughly $56 million in sales for the country.

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Will such a huge market be possible?

Don’t count your dollars yet.

Some things need to happen before legalized cannabis can turn into a $100 billion dollar industry.

Most importantly, there’s a massive black market to deal with. Canada’s black market alone is likely to control 71% of marijuana sales in 2019.

How do you address this setback?

The black market needs to be addressed by legalizing cannabis in developing countries, where supply and demand are largest, and where influence is strongest.

There are also some “overcrowded aspects” in the cannabis production industry, which would mainly mean licensing producers.

Various scenarios need to play out before investors could reap the massive potential benefits of a legal cannabis industry.

However, with things playing out in the right field, you won’t be wrong to assume the best.


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Written by Genefe Navilon

Genefe Navilon is a writer, poet, and blogger. She graduated with a degree in Mass Communications at the University of San Jose Recoletos. Her poetry blog, Letters To The Sea, currently has 18,000 followers. Her work has been published in different websites and poetry book anthologies. She divides her time between traveling, writing, and working on her debut poetry book.

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