The total economic output from legal cannabis will grow 150% from $16 billion in 2017 to $40 billion by 2021, according to the “US Legal Cannabis: Driving $40 Billion Economic Output” report released today by Arcview Market Research, in partnership with BDS Analytics. The report examines the economic multiplier effects through which US consumer spending on legal cannabis in 2021 of $20.8 billion will generate $39.6 billion in overall economic impact, 414.000 jobs, and more than $4 billion in tax receipts.
The report provides estimates of the total economic contribution, direct and indirect jobs created, and tax receipts generated in each of the 35 states expected to have medical or adult-use legality by 2021. The 68-page report is available on an a la carte basis or as part of the Cannabis Intelligence Briefing subscription service from Arcview Market Research and BDS Analytics.
“The economic excitement around the legal cannabis industry is no longer just theory,” said Troy Dayton, CEO of The Arcview Group. “Due to the giant impact adult-use legalization is already having in the United States, it’s vital for key stakeholders to understand the full impact of legalization, beyond just retail sales numbers.”
Among other findings, “US Legal Cannabis: Driving $40 Billion Economic Output” reveals:
- The legalization of adult-use sales in California will lead to the creation of nearly 99,000 cannabis industry jobs in the state by 2021, about a third of all cannabis jobs nationwide, and 146,000 jobs overall when indirect and induced effects are considered.
- By 2021, direct cannabis industry employment will top 291,500 FTE jobs, with a total employment effect of nearly 414,000 FTEs across all legal cannabis states.
- Six of the early movers in legal adult-use implementation (California, Colorado, Massachusetts, Nevada, Oregon, and Washington) will account for more than 60% of that $39.6 billion in 2021 total economic output. Medical-use states will see far less positive economic impact, while the hold-out states will see none.
- The legal cannabis industry may have been a key factor in lowering Colorado’s unemployment rate to one of the lowest in the nation.
- Conservative estimates show more than $1 billion dollars in wholesale, excise, and cannabis-specific sales taxes were taken into state treasuries during 2016. That number is forecast to grow to just over $1.4 billion in 2017 and then to nearly $2.8 billion by 2021. With additional state and local general sales taxes, that 2021 figure could be between $4 billion and $4.7 billion.
The report also explores the projected decrease in illicit markets, and the budgetary and societal benefits of that decline, as the legal, regulated side of the cannabis industry continues to grow.
“Across the country, Americans are worried about being able to find jobs and support their families,” said Tom Adams, Editor-in-Chief at Arcview Market Research and Principal Analyst at BDS Analytics. “The numerous employment opportunities created by the cannabis industry, especially in states that are legalizing adult use, cross the spectrum from retail and service jobs to science, technology and other traditional professions. Voters have noticed, and now legislators are waking up to the opportunities.”
For more information, to purchase “US Legal Cannabis: Driving $40 Billion Economic Output,” or to sign up for the Cannabis Intelligence Briefing series, please visit arcviewgroup.com/research.
About The Arcview Group:
Founded in 2010, The Arcview Group is responsible for a number of groundbreaking ventures in the cannabis industry. The Arcview Investor Network includes more than 600 accredited investors who have put more than $150 million behind 165 companies. Arcview Market Research has published the State of Legal Marijuana Markets since 2011 and it has become the most oft-cited data in the sector. In 2017, Arcview Market Research partnered with BDS Analytics to add more robust point-of-sale data and consumer insights to its offerings. In 2015 Arcview became a partner in Canopy, the first seed-stage mentor-driven business accelerator. Arcview is also co-founder of Cannasure Insurance Services, the leading provider of business insurance to the cannabis industry. Forbes Magazine recently named Arcview among the top 5 financial firms in the cannabis sector.
About BDS Analytics:
Headquartered in Boulder, Colo., BDS Analytics provides cannabis brands, cultivators, producers, dispensaries, and investors with comprehensive, actionable, and accurate industry research. The company provides a holistic understanding of the cannabis market by producing insights from dispensary point-of-sale systems through its market-leading GreenEdgeTM platform, driving consumer research with its Cannabis Insights Group. To learn more about how you can utilize BDS Analytics’ superior data and insights, please visit www.bdsanalytics.com.