Wall Street Investment bank RBC Capital Markets has estimated that a legal cannabis market in the entire U.S. could generate $47 billion annually within the next ten years, according to a Business Insider report. The same analyst claimed that current combined legal and illegal sales top $50 billion.
“We believe further US decriminalization of cannabis including for recreational use is very likely over time. It ultimately starts with US voters who across demographics are supportive of cannabis legalization.” — RBC Capital Markets, in a letter to clients
RBC Capital Markets compared that $50 billion number to existing spirits, beer, and wine markets. Spirits currently generate $58 billion annually, wine $65 billion, and beer $117 billion.
Cannabis, then, even in the current climate, is comparable to other recreational substances. As social stigmas regarding cannabis consumption shift, those numbers may further change.
The investment bank went on to praise the recent move by Constellation Brands, makers of Corona, into the cannabis market with Canopy Growth. Shares of Canopy Growth have soared since the $4 billion investment, bringing nearly every publicly traded cannabis company’s shares up with it.