Americans and Canadians Spent $53.3 Billion on Marijuana Last Year

Plunging Pot Prices Have Legal Growers Scrambling To Lower Costs

Flowering marijuana plants grow at the Smokey Point Productions facility in Arlington, Washington, U.S., on Thursday, Jan. 12, 2017. The increasing supply of legal marijuana is turning into a major buzz kill for growers as prices plunge -- and an opportunity for companies that can help cut production costs. Photographer: David Ryder/Bloomberg via Getty Images

Bloomberg Bloomberg via Getty Images

Americans and Canadians spent an estimated $53.3 billion on marijuana last year, according to a new report.

The figure, presented by ArcView Market Research, includes legal and illegal purchases in the U.S. and Canada. Illegal purchases constituted 87% of all sales, down from 90% in 2015. Meanwhile, sales on the legal market increased by 34%. ArcView believes the legal market will only expand in the coming years, projecting it will grow to $21.6 billion by 2021.

A number of American states have taken steps to legalize marijuana, either for recreational or medical purposes, and a new class of entrepreneurs are scrambling to stake their claims in the burgeoning marketplace.