The recent report from industry analysts Arcview Market Research, titled The State of Legal Marijuana Markets 4th Edition, paints a bright future for the marijuana industry despite foot dragging on reform at the federal level. (See below for latest DEA action) The authors of the report, which this year was undertaken in collaboration with cannabis data analysis and industry reporting authority New Frontier, proclaim the ‘legalization of cannabis is one of the greatest business opportunities of our time and it’s still early enough to see huge growth.’
Noting that increased sales for recreational purposes will stimulate use for medical purposes, the report expects medical marijuana (MMJ) sales in Arizona to hit $453 million by 2020. For 2014, Arcview had estimated the size of the medical marijuana market in Arizona at $142.19 million. Arizona’s Department of Health reported sales of $112 million. These numbers signal the impending tsunami in the MMJ industry. It’s a wave that YiLoLife, Inc. is preparing to surf as it expands its already wide range of products to nearly 600.
Nationwide, legal sales of cannabis products increased, by 24 percent, from the 2014 figure of $4.6 billion to $5.7 billion in 2015. Across America, the growth was spurred by the exponential growth in adult use; sales grew from $373.8 million in 2014 to $1.2 billion by the end of 2015, an increase of 232%. Adult or recreational use of marijuana is permitted in Alaska, Colorado, Oregon, Washington and the District of Columbia. Growth is expected to continue at this robust pace when national sales are expected to grow by 26 percent over 2015 to reach $7.1 billion in 2016.
National sales are projected to top $22 billion by 2020, growing at a compound annual growth rate (CAGR) of 31 percent. In 2014, the adult use sales of $373.8 million represented about 8 percent of the market. In 2020, adult use revenues will be $12.1 billion and comprise 53 percent of the national market.
Market growth, in part, reflects growing public support. According to Gallup, 58% of Americans now support legalization of cannabis for adult use, up from 36% in 2005; a separate poll by Harris found 81% of Americans support legalization for medical use. In seven states (Arizona, California, Maine, Massachusetts, Nevada, Rhode Island and Vermont), propositions to legalize cannabis or reduce restrictions on its use will be on the ballot this November. Four more states (Florida, Ohio, Missouri and Pennsylvania) are likely to pass laws allowing medical use. Even at the federal level, attitudes have been shifting toward medical cannabis. The National Institute on Drug Abuse (NIDA), citing a 2014 study by Katherine Scott, Angus G. Dalgleish, and Wai M. Liu, has published on its website the following:
“…recent animal studies have shown that cannabis extracts may help kill certain cancer cells and reduce the size of others. Evidence from one cell culture study suggests that purified extracts from whole-plant cannabis can slow the growth of cancer cells from one of the most serious types of brain tumors. Research in mice showed that treatment with purified extracts of THC and CBD, when used with radiation, increased the cancer-killing effects of the radiation.”
The U.S. Drug Enforcement Agency (DEA) should put that in its pipe and smoke it. Yesterday it announced the responses to two petitions to reschedule marijuana under the Controlled Substances Act (CSA). Reciting the now standard narrative that ‘based on the legal standards in the CSA, marijuana remains a schedule I controlled substance because it does not meet the criteria for currently accepted medical use in treatment in the United States, there is a lack of accepted safety for its use under medical supervision, and it has a high potential for abuse’, it denied the petitions.
Lamentably, nothing has changed. Luckily, it’s not all bad news. YiLo continues to serve the people of the Grand Canyon state with an extensive product lineup that includes edibles, such as drinks, cookies & chocolate bars, YiLo gear, topicals and creams, flower & bud items and concentrates & wax.
For more information, visit their superstore at www.yilo.com