Marijuana economy may hit $44 billion by 2020

In its annual report on the U.S. cannabis industry, Marijuana Business Daily predicts up to $44 billion in economic impact by 2020. To put that into some corporate context: it's roughly equivalent to the current market cap of Netflix (NFLX) or Caterpillar (CAT). Last year's report predicted $14 billion to $17 billion in impact for 2016. The publication has been producing the report since 2012.

The impact figure is separate from sales of marijuana; it represents sales plus all the money pumped into the economy as a direct result of sales. It encompasses everything from wholesale growers to grow-light manufacturers to marijuana accoutrements and everything below it touched by the trickle-down effect of marijuana money. It even extends to home purchases in places like Colorado, which has attracted new residents since legalizing recreational use.

The marijuana mag assigned the marijuana economy an economic multiplier of 4—that means every dollar spent on marijuana leads to another $3 working its way into the economy.

"We've been expecting rapid growth in the marijuana industry for a while now, and that's exactly what's playing out," says MBD managing editor Chris Walsh. "The main drivers of the growth in recreational sales are Colorado, Washington and Oregon. And also, interestingly, even the mature medical marijuana markets are growing very quickly, like Arizona, New Mexico, and states that have had medical programs for years now. And then you have new medical marijuana states like Illinois, Nevada and Massachusetts."
In other words, there's marijuana momentum almost everywhere.
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mbig said:

Good news for everyone from Govt Budgets, to Medical users, to recreational users.
An above board Mary Jane business.

Marijuana economy may hit $44 billion by 2020
Yahoo Finance By Daniel Roberts - 23 hours ago
Marijuana economy may hit $44 billion by 2020 - Yahoo Finance
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DA60 said:

Although I am STRONGLY in favor of legalization of marijuana (and all other recreational drugs - what people put into their bodies is NO BUSINESS of the state) - I am not big on headlines that include the word 'may'.

That can mean anything as almost anything 'may' happen.

The truth is that whoever wrote the OP article has no idea how much the marijuana industry will be worth in 2020. It could be what he/she said, way more or way less.


The point is that it will probably be BIG.

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joG said:

That would be $ 44 billions less in the drug barons' coffers.

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The impact figure is separate from sales of marijuana; it represents sales plus all the money pumped into the economy as a direct result of sales. It encompasses everything from wholesale growers to grow-light manufacturers to marijuana accoutrements and everything below it touched by the trickle-down effect of marijuana money. It even extends to home purchases in places like Colorado, which has attracted new residents since legalizing recreational use.

The marijuana mag assigned the marijuana economy an economic multiplier of 4—that means every dollar spent on marijuana leads to another $3 working its way into the economy

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Crovax said:

Guess you didn't read the article



That's some pretty fuzzy math, I would ask if they were high when they came up with it but the answer is obvious.

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Crovax said:

Guess you didn't read the article

That's some pretty fuzzy math, I would ask if they were high when they came up with it but the answer is obvious.

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Jog said:

I tend to agree. Projections can be helpful, though, if they are well done.

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....The multiplier is comprised of three elements — the direct, indirect, and induced impacts. c

Direct impact is spending done by a business in the local economy to operate te business, including inventory, utilities, equipment and pay to employees.

Indirect impact happens as dollars the local business spent at other area businesses re-circulate.

Induced impact refers to the additional consumer spending that happens as employees, business owners and others spend their income in the local economy.​

The private research firm Civic Economics has executed the bulk of studies attempting to quantify the difference in local economic return between local independents and chain businesses. Their first such study, for the City of Austin, Texas showed an independent bookseller (Book People) and music seller (Waterloo Records) returned more than three times as much money to the local economy as a proposed Borders Books and Music outlet would....

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