New Frontier Data, which claims to be “the authority in data analytics and business intelligence on the global cannabis industry”, today announced new economic data detailing the potential impact of federal cannabis legalization in the United States.
The federal legalization of medical and adult-use cannabis would create $86 billion in additional U.S. tax revenue between 2019 and 2025 and a $56 billion annual U.S. cannabis market by 2025, states the report. The New Frontier Data State of the Cannabis Union 2019 is now available for free download at the following link: https://newfrontierdata.com/SOTCU.
These findings, as well as comments by Congressman Earl Blumenauer (D-Ore.) and Congressman Lou Correa (D-Calif.) and insights from the world’s first cannabis testing lab Steep Hill and Top 10 U.S. tax firm CohnReznick, were presented during a briefing hosted by New Frontier Data in collaboration with The Liaison Group, a federal advocacy group working with federal lawmakers towards a safe and thriving cannabis economy.
Currently, 33 U.S. states have enacted legal state cannabis programs. Another 14 have approved CBD use, while support among other U.S. states continues to grow.
“Cannabis legalization and decriminalization has not only occurred in nearly 60% of the United States; it is now being explored or adopted in over 60 nations around the world. Our data shows full federal legalization, specifically in the U.S., will drive material gains across key economic sectors, including federal revenue generation, national job creation, and reduced government healthcare spending and crime rates,” said Giadha Aguirre de Carcer, Founder and CEO of New Frontier Data. “Our ultimate goal is to provide U.S. Congress objective and comprehensive intelligence on the potential socio-economic impact of federal cannabis legalization as its members enter into this delicate debate.”
“A changing political tide for advancing cannabis policy is progressing through Congress. More and more Members in both chambers and on both sides of the aisle are recognizing and acknowledging the country’s will for a regulated cannabis marketplace – and that a majority of Americans clearly support respecting states and protecting patients,” added Saphira Galoob, Principal and CEO of The Liaison Group.
New Frontier Data announced the following projections and updated findings:
- There are an estimated 272 million cannabis consumers globally, equivalent to 4% of the world‘s population
- These consumers collectively spend approximately $356 billion each year on cannabis across legal and illicit markets
- In the United States, over 24 million, or 9.9% of adults age 18+ consume cannabis regularly, and 115 million (48.2%) report consuming it in their lifetimes
- In states where cannabis is currently legal, medical and adult use sales are forecast to grow from $12.9 billion in 2019 to $26.3 billion in 2025
- Federal legalization would create $86 billion in U.S. tax revenue between 2019 and 2025 on $253 billion in sales over that period
- Government pain medication spending drops 11% in U.S. medical cannabis markets vs. non-legal markets
- There were 2.4 million U.S. medical marijuana patients in 2018, up 71% from 2014
- The U.S. hemp market is projected to grow to $5.7 billion annually by 2020
- Legal cannabis supported 259,000 plant-touching jobs in 2018