Believe It or Not, Medical Marijuana Sales Could Fall -- Here's What It Means for Investors

Believe It or Not, Medical Marijuana Sales Could Fall — Here’s What It Means for Investors

In Top Stories by MediReview StaffLeave a Comment

If you think medical marijuana sales have been soaring, you’re right. In 2014, global medical marijuana spending totaled $3.1 billion, according to Arcview Market Research and BDS Analytics. By 2017, that figure had more than doubled to $6.7 billion. Rapid growth for the medical marijuana industry makes sense. In the U.S., states are following each other in legalizing medical cannabis like dominoes falling one after another. With Oklahoma’s recent vote to legalize medical marijuana , 30 U.S. states now have laws that broadly allow legal use of weed for medical purposes. Germany, the most heavily populated country in the European Union, legalized medical cannabis last year. Based on the continued expansion of countries and states that allow legal medical marijuana, you might think global medical marijuana spending will keep on growing in 2018 like it has in previous years. But it won’t — at least not if projections from Arcview and BDS Analytics are right. Here’s what’s going on with medical marijuana markets and what it means for investors. Image source: Getty Images. The trend isn’t a friend — at least temporarily Medical marijuana sales naturally increased as legalization efforts succeeded in U.S. states and in other countries. But take a look at this chart. Data source: Arcview Market Research/BDS Analytics. Chart by author. Everything was rocking along nicely until this year. Arcview Market Research and BDS Analytics project that global medical marijuana spending will drop by more than 19% year over year in 2018. That might be a shock, especially considering that medical marijuana spending jumped 34% last year. Following the major dip in 2018, however, medical marijuana sales are expected to increase again. And the growth rate over the next four years should be nearly as impressive as the period between 2014 and 2017. Behind the decline […]

Leave a Comment