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US and Canada spend over $53 billion on marijuana in 2016

With the expansion of legal marijuana market in the United States and Canada, both the countries together have spent $53.3 billion on the drug through 2016, says a report by Arcview Market Research, a leading publisher of cannabis market research.

According to Arcview’s report, North America has seen the sales rise by 30 percent to reach $6.9 billion in 2016. On the other hand, at around $46 billion, the illegal market for marijuana constituted for 87 percent of marijuana sales in 2016. Assuming a compound annual growth rate of 26 percent, marijuana sales in North America is projected to touch $21.6 billion by 2021.

As per Tom Adams, Arcview’s editor-in-chief, the only consumer industries that he has seen reached the $5 billion mark in annual spending with 25 percent compound annual growth with a five-year growth rate were the cable television industry (at 19 percent) in the 1990’s and broadband Internet industry (at 29 percent) in the 2000’s.

According to Arcview’s Chief Executive Officer Troy Dayton, the cannabis market is increasing due to the availability of marijuana concentrates and marijuana-laced edibles that are fast becoming customer favorites. Dayton also observed that unlike other fast-growing markets, the cannabis industry does not need to create a demand for a new product or an innovation; instead, it just needs to move the demand for an already popular product into legal channels. Further, with a 25 percent compound annual growth rate, the cannabis industry presents a very lucrative opportunity for investors and entrepreneurs.

According to the report, legalization and regulation of the marijuana market have reduced the profits in the black marijuana market. Due to reduction in the illegality premium for the product, the cash flow directed at drug dealers and cartels has also diminished.

Growing Canadian marijuana market

While marijuana market continues to grow in the U.S., a great deal of interest in Canada is also seen. While smaller in size as compared to the U.S., the marijuana market in Canada is without any governmental conflicts. In addition, Canada is moving towards legalizing marijuana in 2017. The coming spring will see the present Liberal Party government proposing to introduce reforms to legalize cannabis for not just medicinal but recreational use as well.

An estimation by Mackie Research Capital Corporation, one of Canada’s largest investment firms, estimates the country’s marijuana market to reach more than $2.5 billion by 2020. The calculation is on the basis of the proposition that will mandate full marijuana legalization throughout Canada.

Trump administration: Cause of concern for pot industry

While the cannabis market is putting in big numbers, the upcoming Trump administration poses a great deal of uncertainty with the new administration’s approach towards marijuana legalization.

Though President-elect Trump has consistently been in favor of the states’ rights pertaining to marijuana legalization, his nominated attorney general Senator Jeff Sessions has been a vocal opponent of marijuana legalization. In April 2016, Senator Sessions made a statement opposing marijuana legalization and called it to be a very dangerous thing. According to him, good people do not smoke marijuana.

Road to recovery

Useful in treating certain medical conditions such as chronic pain and symptoms of post-traumatic stress disorder (PTSD), marijuana is highly addictive in nature. Long-term usage of the drug can lead to changes in the brain structure and can cause psychological and physical dependence that can easily develop into an addiction.

If you or a loved one is addicted to marijuana or any other drug, it is time to seek professional support and treatment. Contact the 24/7 Recovery Helpline to find the best drug abuse treatment centers in the U.S. Call us at our 24/7 helpline number 855-441-4405 or chat online with our experts to know about the top drug addiction rehabilitation centers near you.

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