The future for US cannabis is looking bright. It has been given the green light in many states and the world may soon follow. Canada is set to become the second nation in the world (and the first large first world nation) to legalization recreational marijuana. 29 US states currently allow medical marijuana while recreational marijuana is legitimatized in 8 – Colorado, Oregon, Maine, Massachusetts, Nevada, Alaska, California and Washington. The total marijuana market in the US is currently estimated to be worth $50 billion when black market sales are included, but this number is going to shoot skywards as more legalization takes place.
Cannabis Sales Shooting Up
The more people that support cannabis, the more cannabis products that will be made available. And the more cannabis products that become available, the more people will support cannabis. What we are seeing is an upward spiral of cannabis support and products that is going to increase exponentially over the next 5 years. The obvious fact is that people are anti-cannabis because a) they have never tried cannabis and b) because it was illegal. It was like an illogical circle that has been in place since 1937 when it was first banned in America. Now that is being reversed in the opposite direction. The stigma has been removed and people who were previously averse to cannabis use are now going to swing in the other direction. The end result is that the marijuana market is going to increase exponentially for the next 5 to 10 years.
According to a report by Arcview Market Research, growth of cannabis products is going to accelerate in 2018. There have been increases in Canada, California and Massachusetts, and also an increase in medical marijuana in Florida. The report suggests a colossal 20% annual growth rate, and from a current $6-$7 billion legal market, it will grow to be $22.6 billion in 2021. The report states
“Cannabis is now legally sold in state-of-the-art retail dispensaries with computer-based inventory and sales tracking, fully regulated and taxed by their state governments just like any other product category. Entrepreneurs are modernizing the product just as quickly. Many successful brands have launched extracts, edibles, topicals, and other types of products.”
There are many brands and companies on reputable stock exchanges at present. Marijuana is an untapped industry with a huge demand and very little legal supply at present. It is an entrepreneurs dream and is one of those up and coming markets that is hard not to make money in, unless you really get it wrong.
According to the report, 80% of Americans currently approve of medical marijuana and 60% agree with full adult use regardless of whether it is medical or not. These polls indicate that the market for marijuana is huge. And with legalization on the way the entrepreneurs who get to the market first will have significant advantage. This is often the case with many industries where the first to market tend to stay. An example of this is bitcoin, which currently has over 50% of the market capitalization of the entire cryptocurrency industry. This is despite the significant issues with the cryptocurrency and the fact that most technologists and enthusiasts say there are far better coins available. They were simply there first. Of course, quality is going to play a huge part in the marijuana industry, however there are other factors at play.
Other Products
The marijuana industry by no means stops at pure marijuana. It is an incredibly versatile plant. Another popular marijuana sub category is in cannabis edibles and topicals. Many estimate that these are more lucrative markets than just marijuana. The markup is higher and people who are averse to smoking may well apply a topical or consume an edible. Another area is CBD products. Cannabis is mainly renowned for its THC content, which has multiple benefits. However, this is a psychoactive compound and it this may not be agreeable for many individuals. It may induce anxiety attacks, loss of focus, dizziness, lethargy and more. However, CBD is another compound found in cannabis with little side effects. It has a lot of therapeutic effects and products with high CBD and little THC are ideal for many medical conditions. The market for high CBD products is set to grow to a $2.1 billion market in consumer sales by 2020. This will represent a whopping 700% increase from 2016 sales.
Money for All Involved
A 700% increase does not quite equate to a 700% profit margin. But it is still explosive growth that is going to leave and entrepreneur that gets in early with plenty of spare change in his or her pocket. Support for cannabis is at an all-time high and this support is going to result in increased legalization and more cannabis related products and services. Like the dot com boom or the housing market, it is hard to lose money in the initial years of a new industry unless you are doing something very, very wrong. But all cycles come and go and in about 3-4 years we could see the burst of a marijuana bubble. In the meantime, marijuana is as good an investment as there could be with massive customer support.
