If California voters can find a way to come together this November and legalize a fully legal recreational marijuana market, a new report predicts that the state’s cannabis industry will grow into a fearsome beast worth $6.5 billion within the next four years. In addition, the data shows that California’s entry into the recreational cannabis scene will allow the industry to spill over into foreign lands.
According to the latest market assessment from Arcview Group and New Frontier, the passing of Sean Parker’s Adult Use of Marijuana Act (AUMA) could conceivably bring about well over $1.5 billion in revenue within the first year of implementation, creating a swelling trend that would see the total revenue of the medical and recreational sector valued at $6.5 billion by 2020.
Previous reports have shown the nationwide cannabis market could reach $23 billion within that timeframe – creating tens of thousands of new jobs and employing the best concept of the middle working class available in the United States today. MERRY JANE reported last month that the latest data from legal marijuana states along with market predictions provide us with a clear indication that the legalization of pot products has the power to resurrect the middle class -- the most crucial consumer sect in the American economy -- and lead the nation into vibrant prosperity.
Market analysts say that California will be a quintessential force when it comes to how the international cannabis industry does business in the future, while suggesting the state’s move to end prohibition could persuade Mexico to do the same.
“The legalization debate south of the U.S. border has evolved quickly as illustrated by the evolution of Mexico’s President Enrique Peña Nieto who, in just six years, has transformed from one of Latin America’s most vocal drug warriors to a proponent of medical cannabis use and advocate for decriminalizing possession of up to an ounce for all adults,” the report’s authors wrote.
“Legalization in California will only add fuel to the debate on cannabis law reform in Mexico and in other Latin American countries.”
Interestingly, the report finds that if Parker’s AUMA fails to find the support of California’s marijuana masses, it will not deter than rabid path of legalization across the rest of the nation.