Making economic predictions is quite difficult, especially when it comes to the cannabis industry. Even the slightest change in local of federal policies may cause significant changes in the industry in the long term. However, economists and analysts keep trying to understand how the booming marijuana business may look in a few years. The latest attempt was made by New Frontier Data, a Washington D.C.-based research company that focuses on the cannabis industry analysis.
New Frontier’s 2017 forecast offers people who are currently working in or consider joining the cannabis industry a closer look at the industry's potential. The report includes data from all the states where marijuana is legal in at least some form. The document, however, does not include states that could legalize medical and/or recreational weed in the next few years.
According to New Frontier's 2017 annual report, marijuana sales across the country will increase up to the total of $24.5 billion by 2025. California is going to become the absolute leader in the marijuana market, with over $6.5 billion in sales of both medical and recreational weed. Florida is projected to reach up to $2.5 billion in sales, even though the state allows marijuana for medical use only. The third place on the chart goes to Washington with $2.14 billion in sales. Surprisingly, Colorado is only fourth on the list; the state is projected to reach only $1.94 billion in both medical and recreational sales by 2025.
The analysts from New Frontier Data also estimated that by 2019, the number of both direct and indirect jobs in the cannabis industry could reach as high as 255,000 jobs.
According to New Frontier, the company's researchers considered a huge number of factors: from changes in regulations to demographic trends to tourism level, and more. And although these numbers look quite optimistic and promising, there are economists who believe you'd better not use this data when making a serious business decision.
Plus, New Frontier has already changed some of its projections. For example, the first version of the New Frontier's U.S. forecast for 2020 predicted up to $22.7 billion in marijuana sales, but in the firm's 2017 annual report, the number was lowered to $16.4 billion.
The regular updates from the researchers provide you an opportunity to better understand current trends and see the real potential of the cannabis market in the short run. However, this data does not seem to be accurate enough to be used when making any long-term business decisions. So remember to stay cautious and double-check all the facts before making any decisive move.