Grow LED rush After Prop 64


Demand for Grow LEDs to intensify as U.S. floodgates slowly open.


In the same night that Trump got elected as the 45th president of the United States, America’s most populous state, California, passed Proposition 64, legalising adult use of marijuana for recreational purposes – including the right to possess and transport an ounce, and home grow at most 6 plants. The law will take effect December 15. California was not alone: Massachusetts and Nevada also passed their own versions of recreational marijuana legalisation. With this law, the proportion of the U.S. where recreational use of marijuana is legal (under state laws) has reached 20% in terms of population (in 6 states – including Washington, Oregon, and Colorado).


With a gross domestic product of $2.46 trillion, California has since overtaken the UK to become the 5th largest economy in the world. The annual tax revenue projected from the recreational marijuana legalisation in California is expected to go as high as $1 billion.


It’s the ‘home growing’ portion of Proposition 64 that’s bound to have an effect on the LED industry. People are required when home growing they're up to 6 plants of marijuana, to keep them ‘fully enclosed and secure’. This means no natural lighting. And that’s where grow LED lights come in.


According to LEDinside magazine, the U.S. market for grow LED lights is now worth US $575 million – which LEDinside estimates could still reach US $1.42 billion. That market represents 32% of the LED grow light industry this year – and, with the passing of Prop 64, could still grow higher.

In its ‘2017 Global Lighting Market Outlook’, LEDinside has estimated the LED lighting market to be currently worth US $29.6 billion and is expected to increase up to US $33.1 billion next year (a penetration rate of 52%) – the fasted growth being in the Asia-Pacific region, while the highest LED lighting percentage (23%) is in Europe, followed by North America and China.


And that is not yet counting the influence California has in other states of the U.S. In 1996, California was the first to pass a law legalising and regulating the use of marijuana for medical purposes. Twenty-seven other states have slowly followed suit within the last two decades – the most states (5) legalising medical marijuana this year (see graph).


Now that the stigma against marijuana has sufficiently eroded, we won’t need to wait for another two decades for the other 45 states to also legalise recreational marijuana use. When that happens, expect demand for Grow LEDs to further increase – along with the munchies


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