Respected multi-industry monitor Nielsen has released a report on the US cannabis industry, which it predicts will turn over $41 billion by 2025.
The firm estimates that the US cannabis industry was worth $8bn in 2018, meaning it is forecasting 5X growth over the next six years.
“In 2018, we estimate that total sales of all legalized cannabis in the U.S. reached $8 billion,” said Nielsen of its report. “This includes sales of hemp-derived CBD. That’s $8 billion in a country where marijuana is now legal for recreational use in just 11 U.S. states and Washington, D.C.
“With newer recreational markets such as Michigan and Illinois opening up for business in 2020 and more states likely to follow suit, we predict that sales of all legalized cannabis in the U.S. will reach $41 billion by 2025.”
These projected sales include $35 billion for marijuana products and $6 billion for hemp-derived CBD products.
Neilsen’s marijuana projection presumes 75% of the U.S. adult population has consistent access to legal marijuana by 2025.
Its hemp-derived CBD projection presumes ingestible hemp-derived CBD products are legally available at major retailers and across retail channels.
Another interesting data point from Nielsen’s report: it estimates that there were just 166 marijuana brands across two legalized US states in 2014.
By 2018, it says, there were over 2,600 marijuana brands across four legalized states, which represented 10x as many brands in Washington and over 7x as many in Colorado in their early days.
Elsewhere, Nielsen reports: “For marijuana-based cannabis sold in licensed dispensaries in the handful of legalized recreational use states, the market has moved swiftly. We’ve seen dynamic shifts in marijuana product format preferences—even in the absence of traditional marketing power behind them. Where marijuana flower was once the format of choice in state-licensed dispensaries, it fell from a majority share of 77% in 2014 to just 48% of sales in 2018.”
You can access the full report through here.Cannabis Business Worldwide