Despite issues regarding the coronavirus, the cannabis industry in the U.S. continues to show great future potential. With a myriad of marijuana stocks lying in wait, the industry looks like it could have a bright next year or so, once this pandemic is over. A large amount of marijuana stocks based in the country are working off of the idea that laws will change in the near future. One thing worth mentioning regarding pot stock trading is the idea of uncertainty. Because of this pandemic, investors don’t know what will happen tomorrow or next month. With this in mind, we have witnessed a large amount of trading based on fear rather than a companies inherent value.
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This fear-based trading is one of the major reasons behind the massive volatility we have seen in the past few months. But, projections for cannabis sales around the world remain extremely high. Some studies show that the cannabis industry could hit upwards of $50 billion within the next decade. Because of that, there is a lot of growth left to be had.
In the U.S. this growth is spread out to the states that have legalized marijuana broadly. It is not distributed evenly because some statewide markets are much larger than others. Within the country, there are three states that continue to show the most potential out of the nation. These states are doing what they can to solve issues regarding cannabis legislation and make their markets as future-proof as possible.
The Largest Statewide Market By Far
California represents the largest individual cannabis market. The state is obviously the largest simply due to its sheer size. In addition, California has had one of the longest standing legal cannabis markets in the world. But, since recreational legalization went official back in 2018, we have seen a large number of issues take their tolls on the cannabis market there. The two largest issues are cannabis taxation and the increasing size of the black market. Both issues go hand in hand, and both need to be solved in order for the market to see its full potential.
In addition to these two issues, a large majority of counties in the state have said that they will not allow dispensaries to open locally. This means that we are not seeing nearly as many recreational marijuana locations as we should. Estimates are however showing that the Californian cannabis market could see sales of around $11 billion within the next ten years. If we are able to get to that amount, it would be a massive triumph of legislative measures and increased cannabis demand.
The Other Two Big Cannabis States
The cannabis markets of Florida and Nevada may not be the largest or the oldest underneath California, but they do represent potential massive hotbeds of growth in the next few years. In the case of Florida, the state has yet to legalize recreational cannabis. But, it’s medicinal marijuana market has been able to run quite well in the past few years. A report by BDS Analytics states that Florida could see as much as $1.9 billion in sales from cannabis within the next 4 years. In addition, there is a large amount of MSOs who are all competing to make Florida a very large cannabis market. Because of this, it stands to see a lot of growth in the next few years.
Nevada is not a cannabis market that comes to mind when thinking of the largest marijuana industries in the country. But, it does have one thing that could make it a major player; tourism. The state is notorious for its high traffic from out of town tourists. This makes it the perfect destination for the newly grown canna-tourism industry. Some companies and publicly traded pot stocks have already invested masses of money to capitalize on this potential tourism industry, but the market has yet to come close to its full potential. If the tourism industry is able to coincide with the cannabis market, there’s no telling how large Nevada’s pot industry could grow in the near future.
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