The U.S. is hotly considered to be the largest area for cannabis sales in the world. With Canada’s market succumbing to pressures from a myriad of issues, it seems as though all eyes are on the U.S. for growth. With a large number of marijuana stocks to watch also coming out of the states, it seems as though America right now is the future of the cannabis industry. It is also worth mentioning that the U.S. is nowhere near where it could be as far as legislation is concerned.
Although segmented statewide markets all are semi-flourishing in their own ways, the entirety of the industry’s widespread success is dependent on proper legislation being put in place. With that being said, it seems as though the states have been able to succeed amidst these legislative issues. Individual areas in the nation are not without their own troubles.
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For example, in California, high tax rates have led to increased sales of the black market. This takes away money and prominence from the greatly touted legal marijuana market. But with so much capital flooding in from pot stocks and the industry at large, these big statewide markets are working to become the future of the industry.
The Californian Takeover
For anyone who pays attention to marijuana stocks, they know that California is the creme of the crop when it comes to cannabis. The state’s medicinal and recreational marijuana sales combined are projected to hit as much as $3.8 billion by the end of this year. This is a massive number considering where the industry was only a few years ago.
But it is worth noting that California has had less than stellar growth in its market in the past few years. This is due to a combination of factors including the aforementioned black market and other key reasons. But with eyes set on the future, it looks as though California should reign supreme for quite some time ahead.
How Pot Stocks Are Entering the U.S. Market
One of the key ways to enter into the cannabis market in a broader sense than in just one state is through the use of the MSO business model. Multi-state operators operate dispensaries in states around the nation. Currently, Illinois is considered to be one of the most interesting states for pot stocks. On January 1st, the state decided to pass a bill allowing for marijuana consumption and sales within the state. Some studies have shown that the market there could reach $1 billion in sales by the year 2024.
Bear in mind that this is just a projection. It does begin to seem more likely however given the massive growth rates of other similar statewide cannabis markets in the U.S. With all eyes set on the future, it looks like pot stocks and these segmented statewide markets are the best chance of hope for a cannabis filled next few years. With several issues still waiting to be resolved, the industry continues to be interesting moving forward.
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