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New income   Much needed breathing room

Legal cannabis market to reach $24 billion

Legal cannabisAccording to a new report published by New Frontier Data, the legal cannabis market is projected to reach more than $24 billion by 2025, and generate $2.3 billion in state tax revenue from retail sales by 2020.

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Many states in the U.S. see significant economic benefits from legalizing cannabis. Colorado, where recreational cannabis has been legal since 2014, sold $1.3 billion of legal cannabis in 2016 and generated almost $200 million in tax revenue, according to the Colorado Department of Revenue tax data.

The pace of cannabis legalization in the United States has accelerated and this could boost the economy, by creating more jobs and increasing state tax revenues.

New Frontier Data CEO, Giadha Aguirre De Carcer said: "During this tough economy, states are looking for any way to close their budget shortfalls and it appears that cannabis may hold an answer for them.

"New Frontier Data looked at the potential revenues that could be generated from state cannabis taxes and found that in this year alone, states could raise nearly $750 million and triple that number by 2020.

"These revenues will have a meaningful impact on state programs and provide governors with much needed breathing room in their budgets."

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