Syndicated Pulse has analyzed the public companies (over 200) that operate in the legal marijuana industry in order to understand the wholesale legal marijuana market segments in the U.S. The segments not only include companies that grow and directly handle marijuana (legal and recreational) but also include ancillary companies that touch marijuana in some form including hemp, provide growing equipment, consulting services, perform laboratory testing, and so on.
Most of the studies available in the market use retail sales estimates and/or consumer expenditures to arrive at the overall size of this industry. In this study, we have not included the sales from dispensaries as almost all retailers are privately owned, however, Syndicated Pulse has attempted to perform a wholesale analysis of the U.S. cannabis industry by looking at the public companies listed on the Marijuana Index, a stock index that is owned, maintained, and managed by MJIC, Inc., a diversified operating company in the legal cannabis markets with a focus on providing financial services to the cannabis industry.
It must also be noted that an overwhelming majority of cannabis growers in the U.S. are private and hence the approach we have taken provides a conservative estimate (underestimates) of the value of the wholesale market. Syndicated Pulse is also of the opinion that this analysis of public companies could represent one-tenths of the wholesale market. The reason for performing this analysis is to help uncover the potential of this emerging industry from a supply perspective and what opportunities this industry could offer for new participants in such a competitive and fragmented environment.
For the purposes of this research, the marijuana segments considered include:
- Cultivation & Retail
- Hemp/Marijuana Products
- Ancillary products
- Consulting and Services
The revenue generated by all the public companies in the total U.S. wholesale legal marijuana market segments was $210.7 million in 2016 and grew at 48.1 percent from the previous year. Increased legalization efforts at the 2016 election in November resulted in more states approving marijuana initiatives in some form i.e. medical or recreational. Recreational initiatives were approved in California, Massachusetts, Nevada, and Maine while medical marijuana was legalized in Arkansas, Florida, and North Dakota. The opening up of new states to legal marijuana is anticipated to grow the market at a compound annual growth rate (CAGR) of 29.5 percent for the period 2016 to 2021. The report captures various market dynamics such as growth drivers, restraints, trends, competitive landscape, and provides strategic recommendations.
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