Consumption of legal pot is booming in the US with it generating more revenue than many prominent snack brands, according to research from ArcView Market Research and New Frontier Data.
As the herb is slowly decriminalised across the US, revenues are climbing as more people get their smoke on – at least legally.
Estimates state that there were $1b in Californian medical marijuana sales, boosted by $1bn in Colorado, and an additional half a billion in Washington state, according to the Washington Post.
All in, $5.4bn was raised, dwarfing the $4.9bn raised by superbrands Doritos, Cheetos and Funyuns combined, showing the dramatically surging value of the industry.
The figure represents legal sales of marijuana in the US, with it likely merely representing the tip of the iceberg over all.
Arcview estimates that sales will increase 30 per cent each year for the next half decade. With any flourishing product, the resulting surge will boost the marketing and advertising spend of weed.
The group claimed: “Legalization of cannabis is one of greatest business opportunities of our time, and it’s still early enough to see huge growth.”
Any agencies taking on the mantle will have to combat the negative preconceptions of the drug cultivated by its former (in some states) status as an illegal narcotic.
Mark Lowe, co-founder of Third City took The Drum through how this is going to happen.