New data is continuing to come out in the world of cannabis showing how the market is growing at a massive rate. With a high level of adoption throughout the United States and abroad, it seems like we are now entering the era of cannabis. Several companies are poised to lead the fight for the medicinal and recreational industry on marijuana as it continues to grow.
The study has come out showing that “the global medical cannabis market is anticipated to grow significantly from USD 8.28 billion in 2017 to USD 28.07 billion by 2024 and at a CAGR of 19.1% over the forecast period. Factors driving the growth of the legal cannabis industry include mounting recognition of medical benefits, growing demand for cannabis in the treatment of various diseases, and increasing number of research and development activities.” The U.S. is one of the fastest growing markets throughout the global industry with “28 states that have approved the use of cannabis for medical purposes. In major markets like Colorado, California, Alaska, Massachusetts and Nevada, cannabis is legal for recreational use.”
One of the driving factors for the growth of the marijuana industry is the high number of investments being made into the market. Scott Greiper, the President of Viridian Capital stated that “the cannabis market received $1.23 billion investments in the first five weeks of 2018, up from $178 million a year earlier.” The VP of the company, Harrison Phillips stated also that Investments in cultivation and retail this year have been driven predominantly by the Canadian player. This has been happening pretty consistently from late 2016 through 2017. This reflects the necessity to scale cannabis businesses, to get some kind of advantage, and to explore strategic opportunities, both through acquisitions and international expansion.” These strategic investments are helping to grow the market as capital is always the driver of any growth.
One of the fastest growing parts of the marijuana market is the industry on marketing for cannabis. Companies that provide marketing services are quickly becoming a cornerstone of the industry due to their ability to get the word out about a product that has for so long, lived in the shadows of other industries.
As the marijuana industry grows tremendously over the next few years, it will be interesting to see what parts of the market are able to climb to the top. The future of cannabis remains an incredibly exciting market to not only watch, but to take part in. The hopes are high that large investments and strategic marketing will continue to be the driving factors for growth in the market.