Wall Street is catching the cannabis bug
In a lengthy note to clients on Wednesday, RBC Capital Markets estimates that US marijuana sales are quickly catching up to those of beer and wine and that legal sales alone could be worth $47 billion within a decade.
“In this US, the legal cannabis category is set to grow at a 17% CAGR over the next decade to as much as $47 billion in annual sales (this compares to the current diaper category at $4 billion in sales),” the analyst Nik Modi wrote.
“Driving the growth is recreational use of the product, particularly concentrates and edibles,” Modi said. “Estimates already suggest that the US category alone is $50 billion, which compares to spirits $58 billion, wine $65 billion, and beer $117 billion.” RBC’s $50 billion estimate includes illegal sales, and the amount of total sales they make up is unclear.
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