As 2016 comes to a close, it can arguably be described as the best year ever for marijuana. At the beginning of the year, 23 states had legalized medical cannabis, while residents in just four states had voted in favor of legalizing recreational marijuana. By year's end, five new states had legalized medical pot, and another four had voted in favor of legalizing recreational weed.
The sales figures behind pot speak volumes of how far it has come and where it's expected to head next. According to investment firm Cowen & Co., the legal pot industry is worth about $6 billion at the moment. However, the opportunities for organic growth (pun intended), as well as expansion via new state approvals, could push the legal market size to an estimated $50 billion by 2026. This would imply a greater-than-23% compound annual growth rate for the next decade.
Colorado, which was one of the first two states to legalize recreational marijuana (along with the state of Washington) in 2012, wound up generating $135 million in licensing and tax revenue in 2015 from $996.2 million in legal pot sales. With sales once again trending higher in 2016, Colorado's weed revenue could be even greener this year.
Things are looking even better in California, where the passage of Prop 64 this past November could lead to $1 billion in additional tax revenue per year.
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