The legal cannabis market in the United States is on track to reach $35 billion within the next few years, according to a new report.
Cannabis data, analytics, and business intelligence firm New Frontier Data today released The U.S. Cannabis Report: 2020-2021 Industry Outlook which projects that the legal domestic cannabis market will reach $35 billion by 2025.
The report, presented through a partnership with the NXTecK AdTech firm, also notes that five states could potentially pass cannabis legalization measures in November 2020, which could add $3.5 billion to the total before 2025.
According to New Frontier Data, the illicit cannabis market in the United States reached an estimated $66 billion in 2019.
“In 2019, U.S. consumers spent nearly $80 billion on legal and illegal cannabis products, a material figure at any point, but certainly during a time of economic crisis,” says New Frontier Data Founder & CEO Giadha DeCarcer. “As established mainstream brands, particularly Food & Beverage and Health & Beauty CPG firms, look for growing consumer groups to engage with, the cannabis sector rises to the top of their target list, especially as known consumption previously within the illicit space more rapidly moves into the legal realm and thus an accessible space.”
Approximately 230 million Americans live in states that currently permit medical or adult cannabis use, representing 70 percent of the U.S. population.
The highest concentration of cannabis consumers in the country are in Colorado, Oregon, Washington D.C., and Vermont, according to New Frontier Data.
Compliance technology provider Akerna on Tuesday revealed that 41.85 percent of all cannabis consumers in North America are over the age of 40.
According to Akerna, men make up the majority of cannabis consumers at 63.5 percent, while women account for 36.5 percent.
Cannabis flower is the most popular dispensary purchase item, accounting for 46.2 of all transactions, with vape cartridges being the second-most favorite item at 31.6 percent.
New Frontier Data’s report shows current support for legal cannabis at 67 percent, a 41 percent increase from 2010.