$ 45 billion! This is how much the U.S. cannabis market could be worth by 2025

By Javier Hasse

Headset, a data and analytics provider focused on the cannabis industry, released its updated long-term forecast for the U.S. cannabis market, expected to reach $ 45.8 billion in sales by 2025.

Main cannabis markets in the US

The forecast creates an analysis of all 50 states in order to measure the total market potential in the coming years. And states with significant growth potential, including Florida, New Jersey, New York, Ohio, and Virginia, should play a role in expanding the total addressable market, according to Headset.

Image by Arek Socha from Pixabay

Key takeaways from the US market forecast include:

• Florida could reach sales of 3.2 billion US dollars in 2025, making it the second largest cannabis market in the United States after California.
• Since licenses for adult use are expected to be issued in 2023, new York Expected to be the third largest market in the U.S. with a population of over 21 by 15 million and revenue of $ 2.8 billion by 2025.
• New Jerseywhich is expected to transition to adult use in March 2022, is projected to have a population of over 21 with 7 million people with sales of $ 1.6 billion by 2025.
• Ohioan emerging market in 2021, is expected to realize much of its potential with combined annual sales of $ 1.6 billion by 2025.
• Virginiawith an untapped market of 21+ residents nearly the size of New Jersey, is projected to reach $ 1.3 billion in purchasing power by 2025.

“Over the past decade, the growth and development opportunities in the market have accelerated after Colorado, Washington, and several other states legalized adult cannabis. Despite the country’s piecemeal approach to legalization, individual states have created optimal conditions for increased scalability and sophisticated operations in various markets, “said Cy Scott, CEO and co-founder of Headset.

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“With a record level of public and regulatory support for the regulated cannabis industry, the value of the domestic market will increase significantly over the next three years.”

Photo by Darren415 / Getty Images

methodology

To predict each market in all 50 states, Headset used separate methods based on current market status and data availability.

For markets offering Insights premium data, the company took per capita spending data and then applied growth rates (CAGRs) based on historical growth in each market.

RELATED: Is The U.S. Cannabis Market Doomed Like Canada’s?

In markets that did not provide Insights Premium data, Headset used a different methodology consisting of census data, spending per capita, and estimates of likelihood of legalization for medical and adult markets.

You can find the full report here.

This article originally appeared on Benzinga and was republished with permission.