Most marijuana infused products companies have diversified their offerings, according to report from Marijuana Business Daily.
“The lion’s share of cannabis infused product makers have chosen to expand into multiple categories of goods rather than focus exclusively on a single segment such as edibles, concentrates or topicals,” reports Marijuana Business Daily.
Data published in the newly released Marijuana Business Factbook 2017 shows that nearly 70 percent of edibles manufacturers produce other products such as concentrates and topicals.
“Despite the dominance of edible and concentrates, less than a quarter of infused businesses produce these types of products solely,” notes industry analyst and Editorial Director of Marijuana Business Daily, Chris Walsh. “Similarly, only a fraction of infused companies manufacture just topicals, given that the category accounts for a relatively small portion of the retail and medical marijuana markets.
Highlights of the Marijuana Business Factbook 2017 include:
“In 2017, we expect overall marijuana sales in U.S. at the retail level to soar by roughly 30 percent, hitting $5.1 billion-$6.1 billion on the back of continued growth in existing recreational cannabis markets. Additionally, we expect retail marijuana revenues to rise by up to 45% in 2018, followed by another major spike in 2019, when annual sales could surpass $11 billion,” Walsh said.
“While 2017 growth will be impressive, the longer-term growth potential for the industry is even more promising. By 2021, we project that annual retail marijuana sales in US could top $17 billion, which would represent a 300 percent increase from 2016.”
In 2017, rec sales are expected to surpass medical this year for the first time ever. Recreational sales in 2016 jumped 80 percent to hit $1.8 billon.
The marijuana industry will create a $20-$24 billion economic impact in 2017, and that could soar to $70 billion annually by 2021. (Estimates for the industry’s economic impact are based on retail marijuana sales and incorporate a multiplier of four. So for every $1 consumers/patients spend at dispensaries or rec stores, another $3 in economic benefits are created in cities, sates, and nationwide.)
