Marijuana Industry to hit $35 Billion in 2020?

Posted by Sagar Satapathy on October 24, 2014.

A latest report published by research firm GreenWave Advisors, has come up with some interesting predictions. If all 50 states in the U.S.A. legalize marijuana and the federal government lifts the prohibition, the marijuana industry could grow to $35 billion by 2020, it believes.

Currently, only 23 states and District of Columbia have enacted laws to legalize medical marijuana. Colorado and Washington have allowed recreational marijuana too, which is still illegal under federal law. The survey predicts that even if the federal government does not legalize marijuana and the process continues in other states at the current pace, the marijuana industry in the U.S. may still become worth $21 billion in 2020.

The GreenWave has predicted 12 states and the District of Columbia to have legalized recreational marijuana by 2020. They will be the additions to Colorado and Washington. According to the data provided by GreenWave Advisors, Alaska, Arizona, California, Hawaii, Maine, Maryland, Massachusetts, Nevada, New Hampshire, Oregon, Rhode Island and Vermont are the states that may allow recreational marijuana over the next six years.

The Huffington Post quoted Matt Karnes, founder and managing partner of GreenWave, who expects the ballot measure to pass in 2014 so that their sales forecast starts in 2016. He further noted that voters in Oregon, Alaska and District of Columbia are holding ballot measure in November to decide whether or not to allow recreational marijuana. Florida voters will consider the proposals to legalize medical marijuana. "As more and more states come on board with legalization and as the federal government shifts its course on marijuana policy, investor interest will undoubtedly intensify," says the report.

According to Live Trading News, GreenWave is not the first group to suggest that the federal government may end prohibition of marijuana. A US Congressman has also predicted that federal government will legalize marijuana by the end of this decade (before 2020). It can be noted that in May 2014, the US House passed measures to limit Drug Enforcement Administration (DEA) crackdowns on shops in states, where medical marijuana is legal.

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