The weed business is booming.
In its annual report on the U.S. cannabis industry,Marijuana Business Daily predicts up to $44 billion in economic impact by 2020. To put that into some corporate context: it’s roughly equivalent to the current market cap of Netflix or Caterpillar. Last year’s report predicted $14 billion to $17 billion in impact for 2016. The publication has been producing the report since 2012.
The impact figure is separate from sales of marijuana; it represents sales plus all the money pumped into the economy as a direct result of sales. It encompasses everything from wholesale growers to grow-light manufacturers to marijuana accoutrements and everything below it touched by the trickle-down effect of marijuana money. It even extends to home purchases in places like Colorado, which has attracted new residents since legalizing recreational use.
The marijuana mag assigned the marijuana economy an economic multiplier of 4—that means every dollar spent on marijuana leads to another $3 working its way into the economy.