In California, it is estimated that marijuana sales will top $5 Billion in the US. California is set to have the highest marijuana consumption in the USA, easily topping Colorado and Washington, where sales were roughly $1 Billion each last year. It is no secret that marijuana demand is going to be huge, and that increased numbers of cannabis users will be reported with the ease of use that comes with marijuana legalization.
Total Marijuana Demand Beats Ice Cream
To put the marijuana craze into perspective, marijuana is set to be a bigger industry than ice cream. According to a report published by Marijuana Business Daily, the total marijuana consumption in the US is around $45 to $50 Billion where black market sales are included. This is a huge demand for a product that is by and large black market in the USA. The demand can only increase with the increase in legalization and as it becomes available in shops and more easily obtainable.
Sales of ice cream are measly in comparison. Total annual US ice cream sales weight in at roughly $5.1 Billion. Nothing compared to the demand for marijuana. This is not a drop in the sales of ice cream either, but is actually a 6.1% increase from last year. For the purposes of comparison, movie theatre sales are around $11 Billion while sales for chips like Cheetos & Doritos are a little under $5 Billion. The report states
“If the federal government legalized marijuana nationwide, sales might start out at around that level but would likely quickly rise as cannabis gained mainstream acceptance and the market evolved”
Should this happen it could outgrow sales of smoking and possibly even beer. An increase in smoking marijuana would possibly be associated with a decrease in smoking cigarettes. The report also estimated that for every $1 spent on cannabis, another $3 are created in cities, states and nationwide. The revenue generated can be used for local projects. The only potential threat lies with the Department of Justice cracking down on illegal marijuana sales. Even though marijuana is legal at the state level it is bizarrely considered illegal at the Federal level, who reserve the right to prosecute those who use recreational marijuana. And it is important to remember that Federal law trumps state law when the two are in conflict, as set out in the constitution.
The Marijuana Craze
Total marijuana sales are projected to increase by a third this year and researchers predict that annual sales will reach the figure of $17 billion by 2021. It is important to understand that the black market is very difficult to gauge correctly in terms of sales. The main instigators for growth in the USA are Colorado and California. The marijuana industry is booming and there are tens of thousands of industries and related industries just waiting to take off. Cannabis topicals are already available online and packaging and marketing of cannabis related products are important spin off industries. The ripple effect across associated industries will be massive. These industries will help the local communities and the legalization of cannabis is correlated with a boom in real estate prices. Legalization in certain states is a huge boon for tourism. Surveys indicate the Californian tourism is set to increase next year with many visiting just because the plant is legally obtainable there.
Many of those in the agricultural industry are thinking of switching to this more profitable crop, however it may be more difficult than currently believed to actually make a profit off the plant.This is because many predicted that marijuana would be legalized in certain states and had growing operations in progress. Some predict that certain states already have an excess of cannabis and in states like California there may even be a supply glut when vendors can apply for licenses. Growers might actually struggle to get their product off of their hands as it can be expected that competition will be fierce for the best quality marijuana.
Also of note is that this year is the first year that recreational marijuana sales are expected to beat medical sales. The difference between the two is that medical marijuana is specifically designed for those who have symptoms which marijuana can relieve. In 29 states, recreational marijuana is illegal and only medical marijuana is permissible. 8 states currently allow recreational marijuana – Oregon, Massachusetts, Maine, Colorado, Washington, California, Nevada and Alaska. Arizonian voters rejected recreational marijuana.
An Appetite for Marijuana
Surprisingly, the appetite for marijuana seems to grow with legalization. Many thought that after the initial novelty of a formerly illegal drug being legal had worn off, sales would drop. This was not the case in any of the 8 states it has been implemented. Who knows, maybe it will be possible to get the both marijuana and ice cream together. A 99 with a some OG Kush.