How Alternative Cannabis Consumption Methods are Fueling Pot Stock Growth
In the past few years, things have changed greatly in the cannabis industry. From the advent of publicly traded pot stocks like 22nd Century Group Inc. (NYSE:XXII) to Village Farms International Inc. (NASDAQ:VFF), cannabis is everywhere. Not only has the cannabis industry developed at the top, but the retail sector has continued to change as well. Where cannabis is legal, we have seen the development of consumption lounges all the way orally dissolving cannabis-infused strips. In the U.S., states like California and Oregon are leading the legal cannabis fight.
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These states have proven that it is possible to have a revenue-producing legal cannabis industry that provides a great deal of financial relief for the state. Some estimates have shown that within the next five years, the legal cannabis industry could be worth as much as $57 billion. In 2020, that number is also at around $20 billion according to a study done by BDS Analytics. That growth could potentially be seen in both major marijuana stocks like Canopy Growth Corp. (NYSE:CGC) and smaller ones like KushCo Holdings Inc. (OTC:KSHB). With this, let’s take a closer look at how the cannabis industry is growing in the next few years.
The Rise of The Cannabis Industry
Although the cannabis industry in the U.S. has developed alongside the Canadian industry, a lot of the recent focus has been on U.S. marijuana stocks. California reportedly owns as much as 20% of the market share across the nation which makes sense given its sheer size. But, during Covid, the retail experience for cannabis has changed greatly. In the past six months, the trends have shown that marijuana sales for this year are already 90% above where they were last year. One analyst in the cannabis industry stated that “people were using it for sleep anxiety during the pandemic,” among other uses. 
The pandemic has created a new and large niche for the cannabis industry that may last for quite some time. And, additional consumption methods have continued to grow in the industry. This includes the rise of edible and tincture use all the way to pills and sublingual strips. Notably, the cannabis-infused beverage market has taken off as well. With this, we begin to see that the future of the cannabis industry is continuing to grow at a fast pace.
Investors Are Into Pot Stocks For The Long Haul
While there are some investors that prefer to invest in the short term, many have chosen to go with the long term strategy. Pot stocks like Innovative Industrial Properties Inc. (NYSE:IIPR), have shown that the five to ten-year range is where a large deal of potential lies. IIPR for example works off of long term real estate contracts that provide it with a constant income base to work from. 
But, there are plenty of solid pot stocks to watch in similar areas of the cannabis industry. In addition, investors have paid a great deal of attention to the CBD industry and its simultaneous growth alongside cannabis. All of these add up to a large number of potential paths for the cannabis industry to take. Whether or not each path grows as much as another remains up to the future. All we do know is that the cannabis industry will continue to command attention for the long haul.
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