The marijuana industry continues to grow as more states move forward with medical and recreational legalization. The impact of this increasing number of legal states is making the federal government and Attorney General look more closely at ending prohibition and legalizing marijuana. The 2014 GreenWave Advisors Executive Summary estimates full legalization by the year 2020, and their 2015 report coincides with that, but also projects an end to prohibition even sooner.
With the recreational legalization of marijuana initiating in 3 states in 2015, Green Wave Advisors’s projections have changed. Previously, it was projected that marijuana sales would reach an estimated $21 billion by 2020. That number has since increased to a projected $25 billion in sales across the board by 2020. The report continues by saying: “We maintain our expectation of $35B in the event full legalization occurs in all 50 states and the District of Columbia by 2020.”
Statistics show that recreational sales have “outperformed” projected sales numbers, as stated in the 2015 GreenWave Advisors Executive Summary. The report also includes a positive outlook for the upcoming 2016 elections when Arizona, California, Florida, Maine, Massachusetts, Nevada, and possibly a few other states, will be voting on – and are expected to pass – recreational marijuana legalization. Continuing into the coming years, the report also claims: “We expect a surge in revenue growth during 2017/2018 as these new markets commence operations.”
Since the initial report in 2014, a 50 percent growth in marijuana sales took place. Sales totaled $3.2 billion in 2014. The estimated sales numbers for 2015 are set near $4.8 billion. That increase is noted mostly to the legalization of recreational marijuana sales in 2 states – Colorado and Washington state.
Much of the battle also comes down to politics. Increased support for marijuana reform in the Republican Party could lead to marijuana being removed as a schedule 1 drug. According to the report’s analyst, “the percentage of Republicans that have co-sponsored pro-marijuana legislation has increased from the prior congressional session.” The report suggests that “the key driver here is that the positive economic impact of legalization is becoming more visible.” These milestones are aiding the effort to end prohibition, one small step at a time.