Marijuana sales to hit $13B by 2020

The marijuana industry is projected to grow by more than 30 percent annually over the next five years as more and more states legalize pot for medical and recreational purposes, according to a new study from IBISWorld, a market research firm.

Marijuana sales could hit $13.4 billion by 2020, the report projects.

{mosads}Much of the projected growth is credited to the emergence of edible marijuana products and an aging population suffering from chronic illnesses that some doctors believe can be best treated by medical marijuana.

“The development of edible cannabis products is expected to attract consumers who are unfamiliar with marijuana products or are averse to smoking,” the report says. “Already generating more than half of all sales, edible products are projected to be a growth segment for the industry in the coming years.”

The marijuana industry’s pace of growth will slow down just slightly from the 34 percent growth it has enjoyed over the previous five years. It is estimated that the industry now brings in $3.6 billion in annual revenue.

The report also found that medical marijuana is the biggest driver of revenue in the emerging industry, because many more states have legalized pot for medicinal purposes than those that have legalized it for recreational purposes.

Medical marijuana is legal in 23 states and Washington, D.C., according to the report.

“The aging population has driven demand at dispensaries in these states, as chronic illnesses for which medical marijuana is prescribed typically increase with age,” the report says.