The cannabis industry in the United States is taking off, and it's only getting bigger as more and more states legalize marijuana. But a new projection from ArcView Market Research and BDS Analytics says by 2022, there will be seven states in America generating over $1 billion in cannabis revenue. Here are those seven states:
Actually, California is already in the $1 billion marijuana market. In fact, the state spent nearly $3 billion on cannabis in 2017, and that was before recreational marijuana was even legal This newest projection says California will spend around $7 billion on cannabis in 2022.
Colorado is the only other state on this list that's also already hit the $1 billion mark, not surprising since they were the first state to legalize recreational marijuana. The state spent about $1.5 billion on cannabis last year, and is projected to go up to $2.5 billion in 2022.
Florida isn't close to $1 billion yet as the state spent only about $192 million on medical marijuana last year. But these projections expect more people to take part in the state's medical cannabis program, and that some restrictions will be lifted that will eventually lead to the state spending $1.7 billion in 2022.
Washington may actually reach the $1 billion club this year. The state spent $984 million on cannabis last year, so unless they see no growth this year, they'll probably hit $1 billion. Washington though is only expected to grow a little over the next few years as they're only projected to spend $1.5 billion on cannabis in 2022.
Michigan has the second largest medical marijuana market in the United States behind only California. The state spent $812 million on cannabis last year, so they could probably eclipse $1 billion by 2022 through only medical. But considering the state's voters can legalize recreational marijuana this November, we're guessing they're due for a big boost in sales.
Massachusetts legalized recreational marijuana earlier this year, and the state was supposed to begin recreational sales this month but there's been some delays. Still sales should begin in the next few weeks, and they're projected to hit over $1 billion by 2022.
Like Michigan, Arizona already has a thriving medical marijuana market spending over $400 million. These projections do expect the state to legalize marijuana in the next few years, but probably not until 2021. They still think the state will hit $1 billion in sales through the medical market though.
(h/t Motley Fool)