The cannabis industry has created more than 18,000 jobs in Colorado

In 2015, Colorado's legal cannabis industry created more than 18,000 new full-time jobs and generated $2.4 billion, according to the first study of its kind on the legal economy of canna.

The study, conducted by business consulting firm Marijuana Police Group, Based on 2 years’ worth of figures, the company has measured the direct effects of legalization (sales to the tune of $1 billion) and the economic spin-offs linked to the industry.

The indirect effects of cannabis legalization come from an increased demand for local goods and services. Growers rent warehouses, buy sophisticated lighting equipment, irrigation equipment, etc. Cannabis sellers also rely on other, more conventional businesses (lawyers, accountants, etc.).

Previous attempts to quantify the financial footprint of the cannabis industry have often been hampered either by the relative absence of data, or by imprecise surveys or studies, possibly leading to an underestimation of the impact of the cannabis economy.

The Marijuana Police Group believes that most of the growth in the legal cannabis industry has not come from new, previously untapped demand, but from a reduction in the black market.

The elimination of the black market is often cited by advocates of legalization as one of the possible benefits of creating a legal market. In Colorado and Washington, the black market has persisted, particularly for supply neighboring states where cannabis is still banned.

This new report suggests, however, that the black market has been significantly reduced by legalization, and that this reduction will continue. MPG predicts that by 2020, 90% of the cannabis market will be covered by legal supply. The remaining 10% would include self-growers and a small fraction of the grey market that would manage to retain a customer base without really becoming fully part of the legal market.

When this saturation point is reached, the growth of the cannabis industry should slow down, and may resemble any other industry whose growth is massively dependent on that of the population.

On the tax side, the report shows that cannabis already generates taxes 3 times higher than alcohol. By 2020, these taxes should exceed those generated by cigarettes.