Puff, puff, pass… on the cereal.
Legal pot is set to outsell the breakfast of champions, Bloomberg reporter Shelly Banjo tweeted on Tuesday.
In 2019, US sales of legal pot are predicted to reach $US11.6 billion, beating ready-to-eat breakfast cereal sales, which are projected to hit $US9.3 billion, according to Kenneth Shea, an analyst for Bloomberg Intelligence.
Shea first broke down the figures in an article in November 2016. US marijuana sales are predicted to increase 29% annually until 2020, due to evolving regulation, growing social acceptance, and an ageing US population in search of medicinal marijuana.
Meanwhile, the cereal business has hit a slump in recent years.
In 2016, breakfast cereal sales by volume fell 2%, according to Euromonitor data. And, Euromonitor predicts that the decline will only continue, despite companies like General Mills and Kellogg’s attempts to revamp recipes and update branding.
Millennials see cereal is seen as inconvenient and outdated. Meanwhile, Gallup reports that 19% of Americans aged 18 to 29 “currently smoke” marijuana — a figure significantly higher than the 13% rate of the US population more generally, Shea notes.
Read Shea’s full article on the impact of legalised marijuana here.
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