While retailers are eager to learn more about the exciting new world of legal cannabis, one of the major hurdles is finding accurate data about the category. “This data is still in its infancy,” said Lori Stillman, NACS vice president of research, at the recent NACS pop-up event, “The Future of Cannabis in Retail.”

What we do know is that Nielsen predicts $40 billion in legal cannabis sales by 2025, with $35 billion of that in marijuana sales and $6 billion in hemp/CBD. By then, 75% of the U.S. adult population will be living in a recreational state (versus 20% today). And once consumers are using cannabis regularly, Stillman revealed that they will spend 58% less on OTC pain relievers, 54% less on alcohol and 44% less on prescription drugs.

When looking at hemp/CBD, Nielsen’s $50 million projection for 2019 just includes the retailers it tracks (of which 21% carry at least one CBD product). And 26% of hemp/CBD sales will be beverage products, according to the research organization.

U.S. Legal Cannabis Spending

Source: Arcview Market Research/BOS Analytics