Two analysis firms see major expansion coming to the marijuana industry in 2019
Canada led the way when it legalized recreational marijuana across the country. The U.S. is more than likely going to follow this year, as are a number of other countries. The forward progress being seen is creating a huge growth explosion for an industry that was once considered to be associated with the devil. So large is the growth that two analysis firms are predicting that there could be a $17-billion cannabis market by the end of this year.
BDS Analytics and ArcView Market Research predict that the global cannabis industry will jump 38% this year to reach $16.9 billion. Last year, it was only a $16.9-billion industry and, a year prior, a $9.5-billion industry. They add that compound annual sales for the six-year period ending 2022 will reach 26.7%, or $31.3 billion.
There are a number of factors driving the growth. In addition to more U.S. states, as well as other countries, legalizing marijuana, millions of dollars are being put into marijuana research, which is leading to a whole new industry of cannabis innovation and producing an ever-growing number of products. This is expected to increase even more significantly in the next two years as several multinational companies get into the cannabis beverage business.
Prices will also become more stable, as well. While overproduction in states such as Oregon and California have impacted prices, cannabis supplies will become better estimated, leading to an uptick in prices.
This is an exciting time to be watching the global changes being introduced, with marijuana leading the charge. Undoubtedly, we’re entering an entirely new era that is going to bring about a number of developments that will create a whirlwind of revenue streams.