WASHINGTON, D.C.– Medical marijuana is now a $1.7 billion market, according to a new report released today by See Change Strategy LLC, an independent financial analysis firm that specializes in new and unique markets. To put that number in perspective, it will soon rival the annual sales of Viagra.
The report draws on more than 300 survey responses and dozens of interviews with market participants and resulted in the following findings:
- 24.8 million people are eligible to receive a recommendation and purchase marijuana legally under state laws, and approximately 730,000 people actually do.
- Medical marijuana markets exist in seven states (California, Colorado, Michigan, Montana, Oregon, Washington and New Mexico) and will open this year in five more (Arizona, Maine, New Jersey, Rhode Island and the District of Columbia).
- Current marijuana markets will double in the next five years. The two major drivers of growth will be patient access (the number of legal patients will rise) and regulatory clarity (states will adopt regulation and license processes that facilitate the sale of medical marijuana).
“Medical marijuana markets are rapidly growing across the country and will reach $1.7 billion this year,” said Ted Rose, editor of the report. “We undertook this effort because we noticed a dearth of reliable market information about this politically charged business.”
“Hundreds of businesses exist around the country that cultivate and sell marijuana to customers. Many of these businesses emerged in the wake of the Obama Administration’s decision to deprioritize federal prosecutions of individuals and business complying with state medical marijuana laws. The State of the Medical Marijuana Markets 2011 shows which states represent the most active markets, who is making money, and how are they doing it ,” said Rose.