In 2019 the U.S. legal cannabis industry generated an estimated $13.2 billion in sales across all medical and adult-use state markets.
In 2020, despite socioeconomic disruptions amid the COVID-19 pandemic, total legal cannabis sales are projected beyond $19 billion.
Projecting a compound average growth rate (CAGR) of 18% over the next five years, by 2025 total annual U.S. legal sales should exceed $35 billion.
Between 2020-2025, the total combined U.S. market opportunity for legal cannabis sales is estimated at $172 billion.
Projecting that 18% CAGR, annual medical cannabis sales are estimated to nearly triple from $5.8 billion in 2019 to $16 billion in 2025.
Meantime, annual legal adult-use sales are projected to grow at a 17% CAGR, from $7.4 billion in 2019 to $19 billion in 2025.
Conversely, illicit market sales will slow due to legal markets: New Frontier Data estimates that 17% of all 2019 U.S. cannabis sales were legal; in 2025 more than one-third (34%) of total annual demand will be met through legal markets.
Legal cannabis industry expansion is fueled both by new markets as more states adopt legalization, and from sustained demand growth as consumers transition from illicit to legal markets.