Silhouette of a man on acannabis plantation in sunlight.

NEW YORK CITY – The U.S. cannabis industry is growing atunprecedented rates as efforts to legalize cannabis nationwide drawnew consumers to the market each year, becoming amultibillion-dollar industry in key states. With the upped demand,real estate companies and retailers are bulking up their resourcesto expand their market share, according to an MJ Freeway and NewFrontier Data survey.

According to the data, U.S.cannabis sales from consumers 55 years or older increased by 50%since 2015. Well known as baby boomers, this consumer group nowaccounts for 29% of medical marijuana sales and a quarter of allsales.

The U.S. represents thelargest cannabis marketplace because of states suchas California and Colorado that have legalized recreationalcannabis. And further legalization of marijuana is expected tobolster overall sales within the industry, which is slated toreach $13.6 billion by theend of 2019, increasing over 32% from $10.3 Billion in 2018.

In addition to recreational use, legalized medical and adult-useprograms are set to grow at an annual compounded growth rate of 14%by 2025, totaling $30 billion in sales, according to the datareport. A total of 33 states have legalized medical programs, and11 states have legalized adult-use programs.

In states where the sale anduse of marijuana are legalized for recreational use, the cannabisindustry has become a key revenue generator. For instance, stateslike California, Colorado, Nevada and Washington have collectivelyestablished a multibillion-dollar revenue stream from cannabislegalization.

To meet rising demand, cannabis companies are bulking up onspace. Innovative Industrial Properties, a real estate investmenttrust that operates industrial properties for cannabis purposes onthe West coast, bought a facility in Danville, Pennsylvania for$20.3 million. The asset is for cultivating and processingmarijuana.

Cresco Labs, a publicly-traded cannabis company based inChicago, Illi., has recently won the City of Chicago lottery forrecreational cannabis dispensary locations. The company won two ofthe seven available licenses in the Central District, and one ofthe six available licenses in the Southeast District. Cresco will now have one dual-purposedispensary in the North District of Chicago, as well as access to open twoadult-use dispensaries in the Central District and one in theSoutheast District.

As policy tailwinds to legalize marijuana use for medical andrecreational purposes become less taboo and more acceptable on afederal level, the industry is expected to continue to grow.Approximately 15% of the U.S. population resides in states whereboth medical and recreational cannabis use remains illegal, whichis expected to change as demand increases and as youngergenerations age up, according to recent GlobeSt.com article.