The leading publisher of cannabis market projections and information, has released the 4th edition of the State of Legal Marijuana Markets, which shows that the legal cannabis industry is one of the fastest growing industries in America with a compound annual growth rate of 31%. The official 2015 ArcView market estimate is $5.7 billion, up from $4.6 billion in 2014.
Colorado has witnessed tremendous growth with a 93% increase in sales between 2014 and 2015. By the end of 2016, the market is expected to grow another $500 million to over $1.5 billion.
“Colorado is the most advanced cannabis market in the country. The state has been a case study for other jurisdictions debating if and how to legalize cannabis. Colorado’s refinement of their marijuana business regulations have helped to push the state’s legal cannabis market past the $1 billion mark,” said Giadha DeCarcer, Founder and CEO of New Frontier.
“By 2016, Colorado will account for 21% of the total U.S. market for cannabis. Demand has been strongly fueled by residents and tourists and will continue to do so with the growth of the canna-tourism market. Nearly half of the state’s visitors chose Colorado as their destination, in part, because of the cannabis market,” said Troy Dayton, CEO of The ArcView Group.
Colorado’s market growth has been fueled by:
- High rates of cannabis use: According to the Substance Abuse and Mental Health Administration, the state has had the highest reported rate of cannabis use in the country even before legalization.
- Strong population growth: Colorado was the 4th fastest growing U.S. state between 2010 and 2015, adding approximately 250,00 residents from net migration alone, and was a top destination for millennial movers.
- Strong tourism demand: According to the Colorado Tourism Office, 8% of more than the 71 million tourists to the state visited a dispensary.
- Strong demand for concentrates, edibles, and infused products, which command higher sales prices than flower.
About New Frontier:
New Frontier provides objective, sophisticated and comprehensive reporting for the nascent and underserved cannabis industry. New Frontier is the premiere Big Data shop in the sector and looks beyond plant cultivation and distribution to raise the industry bar and provide visibility into a maturing and complex industry. New Frontier is headquartered in Washington, D.C. For more information, please visit www.frontierfinancials.com.
About The ArcView Group:
Founded in 2010, The ArcView Group is responsible for a number of groundbreaking ventures in the cannabis industry. The ArcView Investor Network includes more than 500+ dues-paying accredited investors who have put more than $70 million behind 108 companies. The next members-only meeting of the group will take place in Portland May 1-3. ArcView Market Research produces the State of Legal Marijuana Markets report, which is the most oft-cited market report. ArcView is a partner in CanopyBoulder, 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. For more information, please visit www.arcviewgroup.com.