As the budding marijuana industry continues to flourish, total revenue generated from it could surpass that of the NFL by 2020 and America’s total spending on gym memberships by 2023.
In 2018, revenue from legal cannabis sales, both recreational and medical, was estimated to be between $8.6 billion and $10 billion, according to a report from MJBizDaily. That number surpasses the e-cigarette industry and comes close to rivaling Taco Bell’s annual revenue.
The National Football League’s 2018 brought in about $15 billion, a number that MJBizDaily research editor Eli McVey said could be eclipsed by pot sales next year. McVey said the gym industry could be overtaken in just a few years.
“By the end of 2023, sales of legal cannabis in the United States could exceed Americans’ collective spending on gym memberships,” McVey said.
“But legal sales represent just a fraction of the estimated total potential demand for cannabis in the United States, which is roughly $50 billion to $60 billion when black-market demand is included,” he added.
Continued sales in states that have legalized recreational marijuana paired jointly with the medical marijuana industry are accounting for the growth, although in the long term, recreational sales are expected to be the biggest driver of expansion. From 2018 to 2023, legal sales of cannabis are predicted to see a 200% increase.
“But legal sales represent just a fraction of the estimated total potential demand for cannabis in the United States, which is roughly $50 billion-$60 billion when black market demand is included,” McVey said.
More than 30 states now permit cannabis use for either recreational or medicinal purposes. That number is expected to grow in the coming years. Despite the ongoing legalization efforts, marijuana is still criminalized federally.