When evaluating projected economic numbers, the marijuana industry appears to be set for liftoff. To start the year, Arcview published some new (positive) predictions.
If you follow marijuana industry news then you’re no stranger to industry-related projections. There are forecasts around the total valuation of the market. There are predictions for the number of jobs that will be created. There are estimates for how the taxes collected will benefit society. There are even guesses for how much marijuana sales will … hurt shoe sales.
Nope, we didn’t make that last one up.
Of course, we love getting our eyeballs on new projections whenever they come out. And just in time for the New Year, Arcview Market Research and BDS Analytics released a new study that is filled with positive numbers for all things marijuana.
The report, “US Legal Cannabis: Driving $40 Billion Economic Output,” was released the day after recreational marijuana went legal in California, and that state especially figures to be a key driver of the bullish estimates.
Of all the numbers, the most eye-catching reveal that the total economic output of cannabis in the United States will mushroom from $16 billion in 2017 to a staggering $40 billion (okay, $39.6 — but who’s counting?) by 2021.
The report suggests that in 2021, $20.8 billion in consumer marijuana spending across the U.S. will drive $40 billion in overall economic impact, while creating 414,000 jobs and more than $4 billion in tax receipts.
Also amazing are these additional findings:
- By 2021, California alone will support 99,000 cannabis-related jobs.
- 60 percent of the total $40 billion economic output will be experienced in six of the “early mover” recreational states: California, Colorado, Massachusetts, Nevada, Oregon, and Washington.
- Wholesale, excise, and cannabis-specific sales taxes will hit $1.4 billion when 2017 totals are tallied and $2.8 billion by 2021. Throw on state and local taxes, and total tax receipts could reach $4.7 billion.
Most reports tend to be conservative with their projections. Even if these are, they should make the hearts of most everyone involved in the marijuana industry swell.
We’ll certainly keep you posted on how these pan out.