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U.S. Legal Cannabis Market Could Be $41 Billion by 2025

The future of legal marijuana in the United States is even more promising than initially thought.

This story originally appeared on Benzinga

Annual legal medical and recreational sales are estimated to grow at a compound annual growth rate (CAGR) of 21%, hitting more than $41 billion by 2025, compared to $13.2 billion in 2019;

Bloomberg Creative Photos | Getty Images

That's according to recent data compiled by cannabis-oriented analytics company, New Frontier Data. The firm revealed the findings in its latest update to the U.S. Cannabis Report: 2020-2021 Industry Outlook.

The revision tackles scaled market estimations directly after the passing of six cannabis ballot initiatives, plus a study of cannabis consumer habits influenced by the COVID-19 pandemic.

RELATED: U.S. Cannabis Industry's Economic Impact Could Hit $130 Billion By 2024

Among some of the other important findings are the following:

  • Around 39 percent of the total annual cannabis demand in the U.S. will be answered through legal transactions by 2025;
  • Annual legal sales of medical cannabis are estimated to advance at a 19 percent CAGR through 2025 to around $16.3 billion (compared to $5.9 billion in 2019), while recreational sales should grow at a 23% CAGR, to $25.1 billion (from $7.4 billion in 2019).

 “History is happening before our eyes as the events of 2020 are fundamentally redefining the U.S. cannabis market and will continue to do so for years to come,” Giadha A. DeCarcer, founder and CEO of New Frontier Data said in a statement. “The pace and scale of growth the industry is experiencing is a compelling proof point that cannabis is evolving into a mainstream consumer category.”

RELATED: Marijuana Industry to Create 283,000 Jobs by 2020, Report Projects

The new report, Cannabis in America for 2021 & Beyond: A New Normal in Consumption and Demand, was presented in collaboration with a cannabis-focused private equity firm, Merida Capital Holdings.

Merida managing partner Mitch Baruchowitz also commented on the new findings.

“In 2021, we will likely see the legal cannabis market mature even further as it continues to cannibalize the much larger illicit market. This stratospheric growth presents incredible investment opportunities.”