Cannabis is set to become one of the most significant consumer products on the US market, eclipsing fizzy drinks by 2030. On top of this, recreational cannabis sales have started putting pressure on alcohol sales.
Assuming that cannabis is made federally legal for recreational use in the USA by 2030, it could easily make $75 Billion in sales. This projection comes from the investment bank, Cowen’s cannabis sector analyst Vivien Azer.
Surprising Growth in Cannabis as A Medical Drug
Azer’s earlier projections were a far lower estimation, but the considerable boom created in cannabis-related industries caused her to revise her original figures and raise it by $25 billion. Legal cannabis sales are already sitting at roughly $50 billion.
In states that have legalized cannabis, a marked decrease in alcohol sales has been seen, falling 9% below the average for the rest of the country, and 11% below states that still have a ban on recreational cannabis.
The increased availability of recreational cannabis has led to a reduction in binge drinking, too. With people binge drinking 13% less than in other states.
“As cannabis access expands, we expect further pressure on alcohol sales, given this notable divide in consumer consumption pattern,” Azer stated in a note on the growth of the cannabis industry
An interesting note is that the market for cannabis is distinctly older than that of alcohol, with studies finding that people 55 and older, are the fastest growing segment of the cannabis customer base.
Of course, while cannabis is putting pressure on alcohol, it has a long way to go to catch up with the sales giant. Alcohol sales hit $210 billion in 2017. It’s also good to note that cannabis is still under clinical trials and there are still many unanswered questions.