News and Trends / Cannabis

New Numbers Reveal the Marijuana Industry Boom Has Only Just Begun

Sales of both recreational and medical marijuana already reach far into the billions with vast new markets set to open soon.
New Numbers Reveal the Marijuana Industry Boom Has Only Just Begun
Image credit: Blaine Harrington III | Getty Images
Guest Writer
Easy Search. Quality Finds. Your partner and digital portal for the cannabis community.
3 min read
Opinions expressed by Green Entrepreneur contributors are their own.

The marijuana industry has continued its explosive growth in 2018, and a new report has quantified just how explosive.

Sales of legal marijuana in the United States could hit $10 billion this year and skyrocket to $22 billion by 2022, according to the 2018 Marijuana Business Factbook released by Marijuana Business Daily. That’s big growth year-over-year, with last year’s figure for both recreational and medical marijuana hitting about $6.2 billion.

Here are some of the factors driving projections.

California Gold

Of course, California. The legal recreational marijuana market launched in the Golden State in January of this year. The massive market is expected to help drive nationwide sales of recreational marijuana alone from about $2.7 billion in 2017 to between $4 billion to $5 billion in 2018.

Related: Hey, Hollywood! It's Time to Get Real Portraying Marijuana Users on Screen

Nevada and Massachusetts

Nevada came out of the gates fast last year. After voters approved legal recreational cannabis sales in Nevada in November 2016, the state moved faster than any other in getting a recreational marijuana market in place. Sales launched in July 2017. The state already has sold more than $304 million in adult-use marijuana, with $41 million sold in March 2018 alone. Those numbers are above the original projections. Nevada already has raked in almost $49 million in marijuana taxes.

Waiting in the wings is Massachusetts, where legal adult-use marijuana sales are expected to launch in July.

And voters in Michigan are expected to consider legalization on this fall’s ballot. There’s also a wave building to legalize adult-use in New York, and New Jersey Gov. Phil Murphy also supports legal adult-use marijuana there.

Continued Growth in Colorado, Washington

Voters in Colorado and Washington got the legal marijuana train rolling years ago, but the states continue to increase revenue. Sales in the two states - which the report said have finally come close to plateauing - will “easily eclipse” a combined $2 billion.

Related: These Stats on Cannabis Sales Will Shock You

Medical Marijuana

The market for medical marijuana also continues to grow. Large population states including Florida, New Jersey, Pennsylvania and Maryland have expanded the conditions under which medical marijuana can be used. New Mexico and Arizona also have medical marijuana markets that continue to grow, according the report.

All this adds up to medical marijuana sales coming in at a projected $3.7 billion to $4.5 billion, up from between $3.1 billion to $3.7 billion in 2017. Where does all this lead? The projects from the Factbook call for the following total marijuana sales numbers over the next five years:

  • 2019: $10.5 to $12.8 billion
  • 2020: $12.1 to $14.9 billion
  • 2021: $14.7 billion to $18.1 billion
  • 2022: $18 billion to $22.1 billion

That’s enough to make an entrepreneur stand up and take notice. However, there are many uncertainties about marijuana, including what future states will legalize cannabis and what actions might be taken by the federal government on legal adult-use marijuana sales.

Follow dispensaries.com on Twitter to stay up to date on the latest cannabis news.

By Javier Hasse
From retailers to growers, producers, and suppliers, there’s a seemingly never-ending list of startup opportunities in this emerging market. In Start Your Own Cannabis Business, marijuana, biotech, and entrepreneurship reporter Javier Hasse introduces forward-thinking entrepreneurs like you to the industry and shares hard-earned tips and success stories from pioneers and visionaries in the marijuana industry.
Learn More

Latest on Green Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to Queue next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to Queue next to any article to save to your queue.

Podcasts episodes coming soon for GreenEntrepreneur.com

There are no Podcasts in your queue.

Click on the Add to Queue next to any podcast episode on Entrepreneur.com to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

Canada Makes Marijuana Farmers Eligible for Government Agriculture Programs

Entrepreneur Media, Inc. values your privacy. In order to understand how people use our site generally, and to create more valuable experiences for you, we may collect data about your use of this site (both directly and through our partners). The table below describes in more detail the data being collected. By giving your consent below, you are agreeing to the use of that data. For more information on our data policies, please visit our Cookie Policy.

Name Category
Google Ad Serving, Ad Targeting, Analytics/Measurement, Optimisation
Rubicon Ad Serving
Teads Ad Serving
Nativo Ad Serving
Teads Ad Serving
New Relic Analytics/Measurement
Log Entries Analytics/Measurement
Sailthru Content Customization