United States: The economic impact of the cannabis market could reach $70 billion by 2021

Published

9 years ago

June 13, 2017 - Updated on May 12, 2026

United States - The cannabis market could reach $70 billion by 2021

Recreational cannabis in the United States is legal in 9 states while its use for medical purposes is permitted in 29 states. The cannabis industry is expanding rapidly, with production and distribution seeing increasingly large-scale cultivation and new dispensaries popping up across the country.

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According to the Marijuana Business Factbook 2017, an American business magazine focused on cannabis, the industry of cannabis in the United States could generate a total of nearly $70 billion at the high end in 2021.

U.S. cannabis industry

The total economic impact of cannabis sales at dispensaries is thus projected to rise from 16 to 18 billion dollars in 2016 to a range of 48 to 68 billion dollars by 2021—an increase of 241%. With taxes at around 20%, the math is easy for the state.

This estimate is based on the rapid transformation of the cannabis economy, which is still largely dominated by black-market players. However, the legalization of cannabis in the United States has made it possible to quickly create jobs and offers significant opportunities in the country's industry, which are expected to continue growing in the coming years.

The figures include both recreational and medical cannabis sales. Cannabis products, including marijuana as well as cannabis oils and other products edibles, contribute significantly to the development of the cannabis industry.

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Overview of Cannabis Sales in the State of Colorado (January 2016 to February 2017)

According to the Colorado Department of Revenue, combined sales of medical and recreational cannabis have reached $1.3 billion last year. The cannabis industry in this state is one of the most thriving in the country and continues to grow, posting record sales figures during the first two months of 2017. Combined sales of medical and recreational cannabis in January and February 2017 totaled more than $235 million, a 30% increase compared to last year.

This significant increase is the result of new consumers entering the market, as well as higher spending by existing consumers. In Denver, the capital of Colorado, the average price of weed is around $5 (approximately €4.40), which is a fairly low price.

Nationwide, for every dollar spent by patients or customers who purchase cannabis, an additional economic benefit of 3$ is generated. Why? Because of the launch of new businesses that drive real estate development in economically disadvantaged neighborhoods and bring money into the country, plus all the businesses that support dispensaries (security firms, transportation companies, banking services, etc.). Cannabis companies pay millions of dollars in taxes, which fund new roads, schools, and hospitals.

Most U.S. states are currently considering legalizing cannabis. L‘The cannabis industry is set to experience significant growth, and its impact on the global economy could dethrone some century-old industries.".

Mehdi Bautier