The Legal Cannabis Market Is Still Losing to the Black Market -- by a Wide Margin
Marijuana used to be a substance that was only available for sale on the black market. But with more countries and states making strides toward legalization, there is plenty of potential growth in legal cannabis markets. Some estimates have the legal cannabis market in the U.S. being worth as much as $29.7 billion by 2025. That is more than double 2019's expected sales of $13.6 billion. A big part of that growth will come from California, which had the largest market share of cannabis sales in the U.S. in 2018.
But as impressive as all that growth is, the problem is that the black market is still winning, and it the legal market isn't even close.
The black market is still likely to dominate the cannabis industry in 2020, according to projections from New Frontier Data. The markets in California and Michigan are expected to see demand for legal cannabis products climb to 30% of the total market, but those states are the exception rather than the norm. Florida, which is one of the hottest markets for medical marijuana, may see only one-fifth of its demand being for legal products.
Source Fool.com
