In May 2019, Grand View Research forecasted the legal cannabis business to be worth an estimated $66.3 billion by 2025. In 2018, it was valued at $11.9 billion, which means it has great potential especially as more states legalize recreational sales -- or if it is legalized at a federal level.
According to current data from IBISWorld, $66.3 billion would make it more than three times the size of the chocolate production industry ($19B in 2019), about a third of the dairy industry ($107B) and a little more than a quarter of the aircraft, engine and parts manufacturing industry ($241B). That is the market’s projected value in 2025 compared to current values.
Cannabis manufacturing is a growing industry, particularly as it pertains to cultivation, extraction, packaging and processing equipment. To learn a little bit more about how this developing industry has and will impact the design engineering and industrial marketplace, we asked the pros.
We surveyed 325 people who work in manufacturing (62%), distribution (21%) and design engineering (17%) -- and most have a positive outlook on the budding industry.
Typically, these professionals work for companies that serve a range of markets, including consumer, food and beverage, and automotive, as well as some who worked in aerospace, pharmaceutical, medical, and military, among others.
Of the professionals surveyed, more than 25% (25.54%) have already designed, manufactured or sold products for use in the cannabis manufacturing industry.
More than 45% reported that customers have expressed interest in products designed and manufactured for the cannabis industry.
Overall, nearly 80% (79.08%) of industrial, distribution, and design engineering professionals have a positive outlook on the cannabis industry. About 17% (16.62%) remain uncertain, and less than 5% (4.31%) have a negative outlook when it comes to legal cannabis.
It makes sense, $66.3 billion is a big number.