A Federal Crackdown on Recreational Cannabis Could Cost Industry Billions and Thousands of Jobs
Washington – New Frontier Data, the authority in business intelligence for the cannabis industry, for the past two years has been monitoring the top 10 trends that could affect the market and a cannabis unfriendly administration has been among those. Today White House Press Secretary Sean Spicer suggested that those on the recreational side of the industry could see “greater enforcement” from the Department of Justice. If the federal government decided to crack down on the adult use side, this year alone, it could jeopardize $2.5 billion in projected revenue and $8.6 billion by 2020.
“Just yesterday, we released our projections that the cannabis sector could create almost 300,000 jobs by 2020, and it goes without saying that adult use cannabis factors significantly in that number. Adult use is now legal in eight states including the District of Columbia, covering a population of 69 million people, nearly one-fifth of the U.S. population. In the first week of February alone, retailers in Washington state sold $30.5 million worth of cannabis products reflecting the high demand for cannabis in legal markets.
Press Secretary Spicer also brought up distinctions between medical and adult use, or recreational, marijuana and how they may color how DOJ plans to enforce prohibition laws. He also discussed the growing opioid epidemic in the country and how recreational cannabis encourages drug use. However, according to a study released last year by Johns Hopkins University, states with ‘medical cannabis laws were associated with a 24.8% lower annual rate of opioid analgesic overdose deaths compared with states without laws. In 2010, this translated to an estimated 1,729 fewer deaths than expected.’
Legal cannabis has been one of the fastest growing industries in the country for the past three years and any disruptions would substantially impact the economic activity stemming from this industry,” said New Frontier CEO and Founder Giadha Aguirre De Carcer.
About New Frontier Data:
New Frontier Data is an independent, technology-driven analytics company specializing in the cannabis industry. We offer vetted data, business intelligence and risk management solutions for investors, operators and policymakers. New Frontier’s data and reports have been cited in over 45 countries around the world to inform industry leaders. Founded in 2014, New Frontier is headquartered in Washington, D.C. and an additional office in Denver. For more information or media inquiries, please visit www.newfrontierdata.com or contact our PR team: NFD@PReturn.com.