Arcview Group: Even if Trump Cracks Down, Legal #Marijuana Industry's
27% Annual Growth Rate Through 2021 Remains Unchanged; Projected to Rise from
$6.7B to $22.6B
Report includes unprecedented new data on product
purchase trends in OR, WA, and CO that show an explosion in the number of
brands and products
Oakland,
CA - March 23, 2017 (Investorideas.com Newswire) Today, Arcview Market
Research, the leading publisher of cannabis market research, released the full
200+ page 5th edition of The State of Legal Marijuana Markets which projects
that the state-legal cannabis markets will continue to grow at a 27 percent
CAGR through 2021, despite conflicting signals from the Trump administration.
The report is the industry's most robust ever released with market projections
that rely on a proprietary bottom-up point of sale foundation with millions of
individual consumer transactions from dispensary partners in the largest legal
cannabis markets across the country created by Arcview's data partner, BDS
Analytics.
The
report details how the two biggest drivers of growth are the passage and
subsequent implementation of new adult-use laws and growth of branded product
subcategories, such as vape cartridges, edibles, and other alternative
consumption methods.
"While
the uncertainty created by the mixed signals coming out of the Administration
may cause a temporary dip in some valuations of cannabis companies and some
more risk-averse institutional investors and multinational companies may
continue to stay on the sidelines, it won't impact the growth of the market
much at all," said Troy Dayton, CEO of Arcview Market Research. "No
matter what the administration does, states will continue to issue cannabis
licenses to a long line of applicants and licensed cannabis outlets will
continue to have long lines of consumers ready to purchase this product from
regulated establishments."
Additional
findings from the report include:
- Legal consumer spending across North America grew 34 percent to
$6.7 billion and can be expected to grow at a 27 percent compound annual
growth rate (CAGR) over the next five years, from $6.7 billion in 2016 to
$22.6 billion in 2021;
- North Americans spent $56.1 billion on legal and illicit cannabis
products in 2016, about half of the $105 billion they spent on beer. But
only $6.7 billion of that was spent legally and 87 percent of that came
from just five states and Canada;
- Growth in legal cannabis sales has already eroded the illicit
market. This erosion will greatly accelerate in 2018 with the arrival of
legalized adult-use programs in North America's two biggest markets,
California and Canada. Meanwhile, the 20 states without legal cannabis
programs contributed nothing to the accelerating erosion of the illicit
market;
- Voters in Florida, Arkansas, Montana, and North Dakota passed
medical cannabis initiatives. This means that 63 percent of Americans can
legally obtain cannabis with a doctor's recommendation;
- Voters in California, Massachusetts, Nevada, and Maine passed
adult-use measures. This more than tripled the portion of Americans that
will be able to purchase cannabis without a doctor's recommendation in
their home state to 21 percent;
- Adult-use spending will surpass medical spending for the first time
in 2019. By 2021, $14.9 billion (66 percent of total revenue) will be
generated through adult-use programs and $7.7 billion (34 percent) through
medical use;
- Compound annual growth rates above 50 percent since adult-use
legalization in Colorado and Washington drew significant new segments of
the investment community into the legal cannabis industry in 2016, driving
triple-digit gains in public stocks and double-digit gains in capital
raised by operating companies and a growing group of cannabis-focused
investment funds;
- Pre-rolled product growth sales went up 63 percent in CO, 318
percent in WA and 236 percent in OR; the growth of concentrates and edible
products (including in pill form) were similarly well-above the growth of
flower in all three states
- In the relatively mature Colorado market, there are now hundreds of
branded products on shelves. The top five brands accounted for nearly half
of all edible sales, the top 10 brands for more than two-thirds, and the
top 20 for almost 90 percent; Sales of dried cannabis flower still
accounted for more than half of all cannabis product sales in 2016 in
Colorado, Oregon, and Washington.
- Volume of flower sold continued to grow at a rapid pace throughout
2015 and 2016, while average retail price per gram has declined steadily.
The
report also includes 30 in-depth state profiles.
"The
explosion in the number of brands and products is dizzying," said Arcview
Editor-in-Chief Tom Adams. "When the #1 concentrate brand in CO grows 84
percent but its market share percentage remains constant it becomes clear we
are in a remarkable business boom. It reminds me of 1998, when Google was just
one of dozens of search engines, or 1988 when Blockbuster was just one of
dozens of video store chains; future market leaders are just now being
launched."
The
executive summary for the 5th edition of the State of Legal Marijuana Markets
is available for free and the full digital and hardbound report is available
for purchase for $597 at www.ArcviewMarketResearch.com.
Read this release in full at http://www.investorideas.com/news/2017/marijuana/03231Growth.asp
About
The Arcview Group:
Founded
in 2010, The Arcview Group is responsible for a number of groundbreaking
ventures in the cannabis industry. Arcview Market Research is the first and
most oft-cited publisher of market research on the cannabis industry. The
Arcview Investor Network includes 625+ dues-paying accredited investors who
have put more than $106 million behind 139 companies. Arcview is a partner in
Canopy, a seed-stage mentor-driven business accelerator. Arcview is also
co-founder of Cannasure Insurance Services, the leading provider of business
insurance to the cannabis industry. Arcview's upcoming Investor Forum for high
net worth accredited investors will take place May 1-3, 2017 in Austin, TX. For
more information on the event and Arcview Investor Network, please click here.
Prior authorization for press access is required.
For
more information or media inquiries, please visit www.arcviewgroup.com.
About
BDS Analytics:
BDS
Analytics helps cannabis industry executives make quality decisions based on
the best data by capturing millions of transactions from dispensary
point-of-sale systems and then mining that data for the most actionable
insights. For more information please visit http://www.bdsanalytics.com/.
Media
Contact:
Alex
Howe
202.271.7997
alex@powerplantstrategies.com
202.271.7997
alex@powerplantstrategies.com
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