Medical marijuana sales in Arizona are expected to reach $367 million in 2016 and are projected to soar to $681 million in 2020, which would be a compound annual growth rate of 17%, predicts New Frontier Data, a marijuana industry research group. The group forecasted that if Proposition 205 passed, sales would have surpassed $1 billion in 2020.
“Almost any business owner or investor would be thrilled to be in a market with a 17% compound annual growth rate, until you consider that they were a few thousand votes away from having a growth rate double that” if Prop 205 had passed, said Troy Dayton, CEO of The Arcview Group.
“If Prop. 205 had passed, the combined projected medical and adult use markets for 2020 would have totaled $1.2 billion. Operators in Arizona would have seen a significant opportunity for growth, but now they must begin planning for a period of steep price declines, license holder consolidation, and intense competition in the market,” said Giadha DeCarcer, Founder and CEO of New Frontier Data.