Earlier this year, the financial analysis company See Change Strategy made waves when it released the first comprehensive report on the medical marijuana industry, complete with market size and growth estimates.
For most industries, this type of data is readily available from multiple sources. But that certainly isn’t the case for the medical marijuana sector, which is still in its infancy. It’s hard to find reliable information in any capacity, let alone market data from a professional firm.
You likely already saw some highlights from the report, as it was covered extensively in the media. But in case you didn’t, here are some of the more interesting statistics:
– The U.S. medical marijuana market totals roughly $1.7 billion and could grow fivefold to hit $8.9 billion by 2016.
– California and Colorado account for 92 percent of the entire wholesale and retail sales pie, making them the hubs of the industry. The former has the largest market – valued at $1.3 billion – while the latter has the fastest-growing and most “business-friendly” medical marijuana market.
– The potential customer base is enormous: 24.8 million people can qualify for medical marijuana cards in states with laws making it legal.
– Nearly 35 percent of dispensaries and wholesale medical marijuana companies cite regulatory issues as their biggest concern, followed by obtaining financing.
– Two-thirds of medical marijuana businesses have been operating for less than a year.
Pretty impressive market stats for an industry that literally sprouted up overnight. And with more states coming on board, it seems poised for meteoric growth…assuming the federal government doesn’t intervene, that is.
As a side note, I’ve been told that the company plans to release revised information very soon to reflect updated data and industry changes. I”ll keep you up to speed when that happens.