The U.S. market for legal cannabis grew 74% percent in 2014 to $2.7 billion, up from $1.5 billion in 2013 making it the fastest growing industry in the country, according to a report issued by ArcView Market Research.
The report also shows that if trends continues and all states legalized marijuana, the total market size would top $36.8 billion, making it larger than the organic food industry which is $33.1 billion, according to Nutrition Business Journal.
The main driver of projected growth over the next five years will be the passage of more state laws allowing regulated cannabis sales, according to the report, which predicts that 14 more states will legalize adult use, and two more states will legalize medical use over the next 5 years.
These new markets plus maturation of the existing markets will create a $10.8 billion annual market potential by 2019.
California is still the largest legal cannabis market in the country at $1.3 billion, according to the report.
Further, more than 1.5 million consumers purchased cannabis legally from a retail medical or Adult-use store in 2014.
Looking at emerging trends, the report says that cannabis concentrates and various infused products are quickly gaining market share at the expense of the traditional cannabis flower market and that national brands are beginning to emerge and spread to various states.
The executive summary of the report is downloadable for free at legalmarijuanamarkets.com