Forecast: Massachusetts Functions Legal, On Pace For $2 BILLION Sales Market

Forecast: Massachusetts Goes Legal, On Pace For $2 BILLION Sales Market

Massachusetts’ marijuana legalization went into full effect.
Judging by the data, this is going to add significantly to the size of the U.S. legal marijuana industry.
First day sales racked in $440,000 based on the Boston Globe.
This earnings number seems small, but it portends much larger growth to come.
First, there are only two fully licensed legal marijuana stores in Massachusetts, one in Leicester and the other in Northampton.
These are sizeable towns situated within driving distance of other towns, but they are nothing near Boston metro population centre.
Despite that, first day earnings came in at $440,000.
That’s a sales rate of over $160 million.
Over time, as more licenses become issued and stores pop up throughout the country, those numbers will grow dramatically.
Looking at Nevada data, which has a bit less than half of the population of Massachusetts, we can see how much larger.
Nevada’s marijuana sales total $425 million in its first year following legalization.
Just doubling that gets to $850 million first year for Massachusetts.
Although they are apples and oranges — distinct regulatory regimes, geography, timelines, etc. — we can tell Massachusetts could easily hit $1 billion in marijuana sales in less than two decades.
At that speed $2 billion will not be far behind as markets grow, social acceptance develops, and marginal customers who aren’t the types to line up on the first day of legalization start discovering and consuming products tailored for them.
In the big picture, this is only part of a much larger trend that further proves the U.S. marijuana market has the capacity to grow to $100 billion (if Massachusetts is just 2% of the populace and is a $2 billion market, well…) and it’s going to be here in only a few years.

Released at Thu, 22 Nov 2018 20:47:34 +0000

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