One year, one state, $1 billion in cannabis sales – and we’re just getting started…
The foundation for a $100 billion cannabis market in the United States has been set.
To date, 36 states plus Washington D.C. have legalized cannabis sales, covering 71% of this country’s population.
Those programs made for a $20 billion market in 2020 and have provided a solid base for the tremendous growth the cannabis industry has in store.
But most of those markets are still in the medical-only stage – and the real power comes as they inevitably progress to recreational sales.
We’re talking a 3X to 5X leap in sales or more, often in a matter of months.
Just look at what happened in Michigan.
In 2019, its medical-only market managed to bring in $288 million in sales. Then in 2020, recreational sales kicked in…
And Michigan’s cannabis sales surged over 3X to $984 million – just shy of $1 billion.
It’s hard to get your head around exactly how big that $1 billion milestone is.
But as cannabis legalization takes hold across the U.S., billion-dollar markets will start cropping up left and right.
Those markets will then grow to multibillion-dollar markets.
And from what I’m going to show you today, that could mean bigger opportunities are lining up for you sooner than you ever thought possible…
From $1 Billion…
Let me put a 4-fold leap to $1 billion into perspective with a simple graphic that illustrates the sheer size of another newly-minted $1 billion market – Illinois.
In 2019, Illinois cannabis retailers sold over $251 million worth of products, all under a medical-only regime. But once recreational sales got underway in January of 2020, those sales leaped 4X to over $1 billion.
All in a matter of just 12 months.
Colorado, the oldest recreational market in the U.S., is a $2 billion market with less than half the population of Illinois.
And California, with three years of recreational sales under its belt, is now a $5 billion market.
One thing is clear: $1 billion in sales is just the beginning for states as they progress from their foundational medical programs to full-blown recreational.
Together, these markets will build a $100 billion cannabis market in the U.S.
And with federal legalization right around the corner, we could get there sooner than anyone expects.
…to $100 Billion
Once enacted, the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act would deschedule cannabis by removing it from the Controlled Substances Act and effectively create a legitimate, nationwide cannabis industry.
The bill has already passed the U.S. House of Representatives.
With Democrats now in control of the Senate, I predict it will pass through Congress within a matter of months.
And once it becomes law, all that will be left for the 14 states without existing cannabis programs will be to implement regulatory rules to manage legal sales…
Which could give us a $100 billion market in the U.S. much sooner than would otherwise be possible.
Through 2019, cannabis sales leaped an average of 30%. Last year, they surged 47% to $20 billion as massive recreational markets like Michigan and Illinois entered the arena.
And 2021 is already on pace to deliver a $36 billion market. That’s an 80% leap.
Any fuel added to that incredible growth rate under federal legalization will only take this industry to truly phenomenal heights.
And for the top cannabis companies like Curaleaf Holdings Inc. (OTC: CURLF) and Jushi Holdings Inc. (OTC: JUSHF), their share of that growth will reach triple digits, sending their stocks 20X to 30X higher.
Identifying those winners is exactly what we do for our NICI Membership subscribers.
You’re free to join us today by clicking here.
And when you do, you can make those incredible gains your gains.
Executive Director, National Institute for Cannabis Investors
5 responses to “From $251 Million to $1 Billion in One Year: This Is the Power of Going Recreational”
January 21 2021