Legalisation bids boost outlook for US cannabis industry

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Uncle Sam gave marijuana lovers more reason to celebrate this week as a bipartisan group of lawmakers in the House of Representatives passed a ...

A cannabis plant is seen in a field at Hermel, Bekaa, Lebanon, Jul 31, 2013. LOS ANGELES: Uncle Sam gave marijuana lovers more reason to celebrate this week as a bipartisan group of lawmakers in the House of Representatives passed a bill that would make it easier for cannabis companies to do business in states where sales are legal.

The flurry of states legalising cannabis prompted analysts at Cowen to update their forecast for the U.S. recreational cannabis market to US$41 billion by 2025, an increase of US$1 billion from Cowen’s previous forecast. All told, 16 states allow marijuana sales to adults now. Some of the recent converts, including New Mexico and New York, are not expected to begin allowing sales until next year. All but a few states already allow some form of access for medical use.

Cannabis stocks surged last fall after voters in New Jersey, Arizona and three other states cleared the way for expanding legal sales of marijuana. Medical and adult-use cannabis sales combined jumped 58 per cent in the US last year to about US$19.2 billion, according to Cowen.

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