By Dan Kingston | Arizona Cannabis News
New Frontier Data, a cannabis data, analytics and business intelligence provider, released a new report regarding the future of the cannabis industry. The report reflects the resized market projections following the passing of six cannabis ballot initiatives in five states — Arizona, Mississippi, Montana, New Jersey, and South Dakota — and an analysis of cannabis consumer behaviors driven by the COVID-19 pandemic.
Key findings from the report include:
- Annual legal (medical and adult-use) sales are projected to grow at a compound annual growth rate (CAGR) of 21%, to reach more than $41 billion by 2025 (from $13.2 billion in 2019)
- By 2025, an estimated 39% of total annual cannabis demand across the country will be met by legal purchases in regulated marketplaces (from 17% in 2019)
- Annual legal sales of medical cannabis are projected to grow at a 19% CAGR through 2025, to an estimated $16.3 billion (from $5.9 billion in 2019), while adult-use sales are projected to grow at a 23% CAGR, to $25.1 billion (from $7.4 billion in 2019)
- Increased consumer access to cannabis in newly passed legal markets is estimated to generate $1.2 billion in revenue by 2022
