If there’s one thing Americans and Canadians spend their money on a lot, it’s marijuana. That’s right, North Americans are spending buttloads of money on it. That’s about more than they do at Mcdonalds and Starbucks. The exact number is $53.3 billion.
According to a recent report by Arcview Market Research, a publisher of marijuana market research, people are spending more money on legal alternitives than they are on the black market. But, it’s not moving as fast as some people hope.
According to Business Insider, “the North American legal weed market posted $6.7 billion in revenue in 2016, up 30% from the year before. The illicit market generated 87% of total pot sales, down from 90% in 2015.”
What these numbers are telling us is that the legal marijuana industry is growing at a rapid rate. But, it will take some some time to surpass the black market, which has a huge chunk of market share.
“Cannabis is arguably the fastest growing industry in the world. Regulated marijuana sales in North America totaled $6.9 billion in 2016, a 30 percent increase from 2015. Sales are projected to increase to $21.6 billion by the year 2021 representing a 26 percent compound annual growth rate.”
Here’s how Troy Dayton, CEO of Arcview Market Research, describes more in depth about the black market:
“The enormous amount of existing, if illicit, consumer spending sets cannabis apart from most other major consumer-market investment opportunities throughout history,” Dayton said in a statement. Unlike other fast-growing markets, which include organic foods, home video, and mobile, “the cannabis industry doesn’t need to create demand for a new product or innovation — it just needs to move demand for an already widely-popular product into legal channels.”
It’s not a surprise to hear this news. We all knew that marijuana sales would surpass a lot of common industries. But, to be fair, did we have any idea it would beat out McDondalds and Starbucks? I didn’t, but it’s good to know where we stand. The best part? Looks it’s not slowing down one bit.