As 7-Eleven Slurpee machines nationwide recoil in fear of abusive consumption rates, the OG Kush gold rush is poised to hit peak haziness this week. ArcView Market Research, the authority on medical marijuana business forecasting, released a new report showing a flabbergasting amount of growth for the sweet leaf. Specifically, to the tune of a projected $21.8 billion in sales by 2020.
Start circling April 20, 2020 on your calendar now because eclipsing the NFL’s revenue — they did $12 billion last year and expect to hit $25 billion by 2027 — is the best reason ever to pack a super bowl. Growth in the legal herb market, as indicated by industry investors and independent research firms, showed sales jumping 17 percent to $5.4 billion last year and compounding to 25 percent growth this year. That means the end of 2016 should weigh in a few trichomes under $7 billion.
Consider that legalization just hit Colorado two years ago, so what spurred this growth? A compound annual growth rate of 30 percent is attributed to new money, new operators and initial investors validating their business plans. Couple this with states following California, Oregon and Washington’s separate paths to legalization and another 23 states that legalized medicinal sales, and it isn’t difficult to tell where the new gold rush is.
Another six states could pass legislation votes this fall and, all the while, our favorite tech investors are beginning to see more value in plants than microchips. Peter Thiel — renowned venture capitalist, co-founder of Paypal and the first major Facebook investor — just dropped a light $75 million into Privateer Holdings via his Founders Fund. No word yet whether your local dope boys will start accepting Paypal transfers, but if this world was fair, then integration should be coming very soon.
For those who have wiped the Slurpee stickiness off their fingers and are still hungry to get involved, check out the full report before that next sizzla. While the tides seem to be shifting in our favor now, however, the looming election results could change things very quickly.