Marijuana Industry To Hit $60B In Sales By 2023, New Study Reveals

Sales in the marijuana industry of the United States are growing exponentially.

According to a study, in 2020 the surging U.S sales of marijuana would beat the projected revenue of National Foot Ball League’s (NFL) at $15 billion.

The report by the Marijuana Business Factbook from MJBizDaily offers a comprehensive insight into the growth dynamics of marijuana sales in the U.S and the related figures.

The revenue from recreational and medical cannabis in the US in 2018 was between $8.6 billion and $10 billion.

“By the end of 2023, sales of legal cannabis in the United States could exceed Americans’ collective spending on gym memberships,” said MJBizDaily Research Editor Eli McVey.

At present, Marijuana sales are higher than Taco Bell’s annual U.S. revenue. The report also reveals that marijuana sales have beaten that of e-cigarettes, and the sales of Fortnite video game and Goldfish crackers put together.

Legalization by states boosted marijuana sales

The trigger for rising marijuana sales in the U.S has been the legalization initiative taken by many states.

Colorado started it and 36 other states followed and passed relevant laws. The legal nod from states boosted consumption and expanded medical and recreational use.

But the recorded legal sales are only a fraction of the potential demand in the United States. The real demand is around $50 billion to $60 billion including the demand in the black market.

Right now, at least 20 percent of adult Americans are using some form of the cannabis plant for handling pain, other forms of therapy and fun, McVey added.

FDA hearing on CBD in food

In terms of percentage, the user base is expected to grow as more states remove legal restrictions on the drug.

The recent FDA hearing held on May 31 among stakeholders was a prelude to the greater commercialization of marijuana-related products.

The hearing attracted industry researchers, scientists, health professionals, advocates who deliberated on the viability of CBD addition in food and other products.

The 2018 Farm Bill had legalized industrial hemp production and hemp-derived products, including CBD.

But legalization was not enough to allow CBD additives in food, beverages, and dietary supplements. That is the exclusive domain of FDA as the main regulator.

The CBD or cannabidiol (CBD) as a component in the cannabis is considered non-psychoactive and deemed good in treating epilepsy and chronic pain. However, CBD is only one among 100 cannabinoids found in the cannabis plant.

The May 31 event was a major step in collecting out the thoughts of the stakeholders on CBD-infusion in food and beverages. Already CBD oil is a high demand product.

So far, FDA held CBD good in just two areas --Lennox-Gastaut syndrome treatment and as a cure for Dravet syndrome.

The hearing may help to expand the areas of application and if CBD addition in food products gets the nod, the cannabis or marijuana industry’s market size will expand many times.

The report affirms that legalized marijuana would offer $39 billion to $48 billion boosts for the economy in 2019. That figure will cross the $100 billion mark by 2023.