According to research by New Frontier and Arcview Market Research, California’s legal cannabis market could be worth as much as $6.5 billion annually by 2020 if voters approve Proposition 64 in November, the Washington Times reports.
New Frontier CEO Giadha DeCarcer said if the state legalizes cannabis for recreational use it would “catapult the industry.”
“It is the largest and most influential state in the cannabis industry in terms of production, consumption, and cultural influence,” he said in the report.
Last year, California’s medical market reached $2.7 billion, and the recreational market could add another $4 billion to the industry over the next four years, the research says. The state’s medical marijuana industry represents about 62 percent of all medical cannabis sales nationwide. The market report suggests that while overall cannabis sales would rise, sales in the medical marijuana sector would decline from last year’s $2.76 billion total to $2.53 billion by 2020.
National cannabis sales are predicted to hit between $14 billion and $17 billion this year, with potential to reach $44 billion by 2020, according to the Times report.
In addition to California, voters in Arizona, Nevada, Maine and Massachusetts will decide whether to legalize cannabis for recreational use during the general election.