The U.S. legal cannabis industry is on track to hit $25 billion by 2025, according to the latest forecast from cannabis analytics firm New Frontier Data.
The research and data firm on Friday released revised industry sales projections, predicting that the $8.3 billion U.S. medical and recreational marijuana industry will grow at a compound annual growth rate of 14.7 percent, to an estimated $25 billion by 2025.
That $25 billion should be split equally between medical and recreational cannabis, New Frontier officials said.
Medical marijuana sales are expected to grow from $5.1 billion at a compound annual growth rate of 11.8 percent. Recreational sales should see accelerated growth, increasing from $3.2 billion at a compound annual growth rate of 18.4 percent.
“With a number of states expected to advance cannabis legalization measures in the next 24 months, more Americans will be able to access legal cannabis in the years to come, making this a watershed 4/20,” Giadha Aguirre De Carcer, New Frontier Data’s chief executive officer said in a statement.
Full details of the projections were not initially available. The data released Friday are part of New Frontier’s 2018 industry outlook report, scheduled to be released in May.