A new report cannabis sales from industry stalwart Arcview Market Research, whose flagship annual report, The State of Legal Marijuana Markets, has become the industry standard for market analysis and data in the legal cannabis sector, cites big sales and bigger opportunities for investors looking for private placement investing opportunities right now in the industry.
Global cannabis sales rose 48% to $15 billion in 2019, driven by “growth in sales in Canada and seven U.S. states that saw sales more than double” according to a Business Wire press release:
“Continued consumer adoption in maturing markets such as Colorado and new adult-use markets including Massachusetts contributed to 45% growth in adult-use sales to $8.9 billion. However, medical-only states and countries actually grew faster – up 54% growth to $6.2 billion,” the release stated. “The United States saw 81% of spending in 2019, although superior growth in the rest of the world will continue balancing the market across the US, Canada, and Europe through 2024.”
That 45% coming in from the Bay State is noteworthy considering the slow rollout of adult-use retail storefronts and other issues surrounding the Massachusetts legal cannabis market.
As far as what investors should pay attention to comes from one of the key takeaways is summed up by this comment from Troy Dayton, Founder and Chief Strategy Officer of The Arcview Group (emphasis ours):
“These stunning growth numbers prove the negative stigma of cannabis is coming to an end in the US. What’s incredible is the realization that so much potential growth remains both domestically and globally. With sales jumping nearly 50% in an industry with only a handful of markets online, this report quantifies why there’s so much anticipation from producers and shrewd investors waiting for national and international markets to open up or mature. The fallout in public market valuations is not trending with the tremendous growth curve of this exploding market. That discrepancy represents a unique and time-bound opportunity for investors.”
Other key points on cannabis sales in the forecasts mentioned in the release:
- Sales in 2020 are forecast to increase by 38% driven by growth in established markets and continued geographic expansion, including Illinois’ recreational market opening.
- Despite medical spending outgrowing adult-use spending in 2019, adult-use markets will be the primary drivers of global market growth through 2024.
- More than $400 million in Massachusetts adult use sales in the first year of an adult use East Coast market.
- Florida continues to perform strongly with over $650 million in sales despite being a medical-only market.
- New consumers continue to enter the market at a rapid pace with the development of new products and social acceptance.
Between the more than $400 million in cannabis sales across the first year of adult-use sales in the Commonwealth, and the stunning numbers coming out of the first 12 days of sales for Illinois, there are more and more reasons investors are seeking the top 1% of private placement investment opportunities in the legal cannabis market.
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