With more states legalizing marijuana in the coming years, the industry is expected to boom. But just how big will that boom be? Well, according to experts, the market could reach $18 billion in four years.
Greenwave Advisors released their projections for how much the marijuana industry will grow in the coming years, and it's very positive. The analysts said that even if President Trump challenges or imposes roadblocks onto the industry, the market will hit $18 billion by 2021. But they went even farther and suggested if every state legalizes recreational and/or medical marijuana, that number could reach $30 billion
Analysts at the company noted that retail sales in 2016 were about $6.5 billion, up 35 percent from 2015. And in 2017 they estimate that number will reach $7.7 billion, an 18 percent growth from last year. In 2018, California will legalize recreational marijuana. Greenwave projects that the state will account for 40 percent of marijuana sales in the coming years.
Greenwave is very optimistic about the growth in the industry and don't seem particularly worried about the Trump administration trying to slow things down. In fact, they see a possibility that Trump could indirectly help the industry. The president has expressed his support for deregulating banks and loosening restrictions from a 2002 bill. Doing so could allow major banks and financial institutions to work with marijuana companies, something that is currently not allowed, which could free up a lot more capital for the industry.
So if you're looking for an industry on the rise, forget Silicon Valley. Marijuana is where it's at.
(h/t The Root)