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Cannabis is set to become one of the biggest 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 marijuana 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.
Azer’s earlier projections were a far lower estimation, but the huge 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 legalised marijuana, 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
Increased Interest by the Elderly
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.