The cannabis market has been growing at quite a substantial rate over the course of the past five or so years. With a large amount of support from the public, it seems as though the marijuana industry is just now getting started.
A new report shows that the U.S. marijuana industry could potentially reach as much as $22 billion in the next four or so years by 2022. This number is quite large considering where cannabis currently is at around $6 billion. The tripling of value in the industry is something that has not before been seen and seems to be the main drawing factor for investors to continue coming into the space. Not a lot of industry can produce this kind of growth, but marijuana continues to highlight the perception of the drug and its usefulness as the main reason for this massive growth.
The marijuana industry seems like it has no place to go but up according to many studies done recently. Currently, in the U.S., there are as many as 30 states with some sort of legal measures put in place for use of cannabis by the public. Nine of these states including the District of Columbia allow the use of recreational cannabis for those who are over twenty-one years old. The newness of this industry can only be shown in the fact that many of these states have only recently put this new legislation in place such as Arkansas, Florida, North Dakota and others. With the large and growing California market only going into effect earlier this year, it seems as though this is just the beginning of the massive growing market in the U.S. and beyond. Many states have also been working to cement new legislation for the industry to allow the use of recreational cannabis and not just medicinal use, which could help to boost the revenue of the greater market overall.
One figure shows that “Colorado’s recreational marijuana market opened in 2014. Total marijuana sales that year (including medical and recreational marijuana) were nearly $684 million. Based on year-to-date revenue figures in Colorado, the state’s total marijuana sales in 2018 will probably be around $1.6 billion. That’s 134% growth in five years.” When looking at numbers like this, it is easy to see how the growth of the industry could continue to meet these high expectations in the coming years.
One stock that has continued to shock investors without even having a direct tie to the physical cannabis plant is the company Scotts-Miracle Gro (NYSE:SMG). The company has presented a new way to invest in the cannabis market and has helped to build the idea of ancillary industries that so many investors have been flocking to. Scotts traditionally is a company that offers solutions for growing plants, but as they realized the massive nature of the cannabis market, the company has been specifically producing new products to help meet the growing demand of the cannabis industry, and has marketed these products as such. Scott also recently acquired the company known as Sunlight Supply, which works by distributing hydroponic products to the U.S.
The whole of the marijuana industry is still very much in its infant stages as highlighted by the information above. This means that there is still a large amount of room to grow throughout the widespread industry. As more regulation is put in place, and more states begin to allow the use of cannabis, it seems as though the next coming years in this industry will continue to be positive for investors and consumers alike.
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