With 10 newly legalized states slated to begin selling cannabis in 2021 or 2022, the legal market is projected to pull in $43 billion by 2025. That eye-opening finding is one of several made in a new study conducted and published by top cannabis market researcher New Frontier Data. Entitled “Cannabis in the U.S. 2021 Mid-Year Market Update,” the report examines recent market trends and figures following expanding legalization efforts nationwide, while casting new projections for 2021 and beyond.
The report finds that 141 million Americans, or 43% of the adult population, reside in 18 adult-use states, "representing a diverse and widely distributed consumer base for retailers to segment and target." And by 2025, 42% of the total annual U.S. cannabis demand is projected to be met by legal purchases in regulated marketplaces. This is a 24% jump from 2020. New Frontier Data cites a surge in legal market spending as well as the conversion of existing illicit market consumer spending to legal regulated sources as reasons for the estimated increase in consumer demand.
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To download a copy of the report, visit this link.
Known for solutions that yield results, Seth Yakatan has completed or advised on acquisitions and corporate finance transactions totaling over $3 billion. He is CEO of Katan Associates International—a financial strategy and merchant banking firm specializing in commercialization and asset monetization—especially those within life-science and e-commerce sectors.