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Update: US Medical Marijuana Sales Seen At $1.7B-Report

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The U.S. medical marijuana market will reach $1.7 billion in sales this year, according to a report by See Change Strategy LLC.

The market, which nearly rivals Viagra's $1.9 billion in sales, is expected to double in the next five years as the number of patients grows and more states adopt laws allowing the sale of marijuana for medicinal purposes, according to the report.

"We're witnessing the beginning of a legal business ecosystem forming around medical marijuana," said Ted Rose, editor of the report, during a phone call with journalists Wednesday.

Though the report focuses on measuring sales from businesses directly involved with marijuana, such as growers and dispensaries, Rose said there is a thriving secondary sector of companies that provide ancillary goods and services ranging from hydroponic equipment suppliers to real estate companies.

The report, which took more than six months to research, used a combination of surveys, interviews and financial modeling to estimate the market size.

See Change characterizes itself as an independent financial analysis firm that specializes in new markets, and said the report was largely self-funded. The firm is managed by Kris Lotlikar, founder of Renewable Choice Energy, which sells renewable energy credits and carbon offsets to homeowners and businesses seeking to lower their carbon footprints.

Lotlikar, a Colorado resident, formed See Change eight months ago to research the medical marijuana market after he decided that estimates of the sales and usage of medical marijuana weren't backed by enough analysis.

"I didn't think there was enough reliable data out there," said Lotlikar, who hired researchers, analysts and an epidemiologist to gather data on patient populations, marijuana retailers and wholesalers, and forecast potential growth.

On the web site where it sells the report, Medical Marijuana Markets, the American Cannabis Research Institute and DealFlow Media are listed as sponsors.

The American Cannabis Research Institute last year advocated against electing a California state attorney general candidate characterized as being opposed to medical marijuana, while DealFlow Media publishes its own medical marijuana newsletters and hosts conferences for the industry. Lotliker

Medical marijuana is sold in seven states, including California, Colorado, Michigan, Montana, Oregon, Washington and New Mexico. Five more will open this year in Arizona, Maine, New Jersey, Rhode Island and the District of Columbia.


News Hawk- Jacob Husky 420 MAGAZINE
Source: online.wsj.com
Author: Lynn Cowan
Contact: Contact Us
Copyright: Dow Jones & Company, Inc
Website: UPDATE: US Medical Marijuana Sales Seen At $1.7B-Report
 
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