The cannabis industry has been able to grow at an immense pace over the past several years. With new legislation in the works and a growing base of support from the public, it seems as though the cannabis market has no place to go but up. Many pot stocks in the industry have seen gains of over 1,000%, which means that there remains a large amount of potential throughout the cannabis industry for investors looking to get into a new space.
The cannabis research firm known as ArcView has stated that they estimate the cannabis market in North America to reach as much as $47 billion throughout the next ten years. This number is up from the almost $10 billion that it currently stands at. The past year has seen an over 30% gain in the amount of cannabis sales in North America, which can be attributed to the changing legislation as well as the support mentioned prior from the public.
A series of polls throughout the end of 2017 showed that in the U.S. there is an overwhelming amount of support for the legalization of cannabis. The polls show that on average in the U.S., around 60% of individuals support legalizing marijuana nationwide. This is quite surprising considering the amount of effort from the national government to ensure this doesn’t happen. With new laws in Canada regarding recreational cannabis expected to pass this summer, it seems like this paradigm if shifting very quickly. If the Cannabis Act is signed into law in Canada, the market would potentially add another $5 billion in sales annually. This would also be the first time in the world that a developed country has legalized the use of recreational cannabis nationwide.
There are many factors that are beginning to push the weed market into the future. One of these is the above effort from Canada to legalize the use of recreational cannabis. Another major impact on the cannabis industry is the amount of mergers and partnerships being formed. The industry has become kind to the idea of mergers’ and many companies have begun to join others that work in similar areas throughout the market.
One of the biggest prospects for growth throughout the industry is the idea of ancillary markets. The cannabis market is notably still in its infant stages which means that there is a large amount of room to grow. With the new regulations in the market from transport to packaging, the world of ancillary industries within cannabis has opened up dramatically. One of the most important parts of this industry has become the prospect of banking in the future. Companies in the U.S. are not allowed typically to have access to federally secured banks, which means that often times they are dealing solely in cash. This can be dangerous to the business and its employees. With new legislation hopefully going into effect in the near future, the hopes are high that the market will begin to adopt this new ancillary market even more than in today’s area.
The cannabis industry is growing at a tremendous rate, but it is still very much in its infant stages. This means that as legislation is passed in favor of the substance, the market may be able to reach its full potential in the near to not too distant future. The hopes are high that fairly made laws will be able to give patients the access to treatment they need, and access for public use as well. Only time will tell how much the market develops over the coming years.
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