The cannabis market throughout the world has seen a large amount of success in terms of implementation and legal measures, but many changes have yet to hit the market that are currently in development.
The cannabis-research firm ArcView has stated that the legal cannabis market will likely grow at around a 26% rate year on year through 2021, where it is then expected to reach an even larger amount. Sales by 2021 are expected to hit somewhere in the ballpark of 22 billion, which makes the marijuana industry quite large when compared to others in similar fields. Because of the newness of the market and relative infancy, many investors have begun to flock into the market, resulting in a massive pool of money for companies to use to build their businesses throughout the coming years.
It has not bee uncommon in any way to see a marijuana stock this year double or triple in value, but we could potentially see these numbers going even higher into the next few years. Several factors have been affecting the industry, causing this large growth over the past year and it appears that there are still more factors to come into play regarding legislation and investments in the space.
The polling company Gallup has found that around 25% of U.S. residents in 1995 were in favor of having some sort of legalization for cannabis throughout the country. This number as of last year has more than doubled to as much as 64%, showing the massive amount of support nationwide for the cannabis industry. Many have been wondering as to what factors will affect the market this year, and there seems to be quite a few.
One of the most impending changes to the industry is the fact that Canada has worked to cement recreational legalization of cannabis on a nationwide level. This makes Canada the first developed nation to sell cannabis legally as a recreational substance. The bill has moved forward substantially and all that is needed now is the implementation of the new laws. The legalization of cannabis on this level will effectively help to bring in more foreign investors into the space, and will likely help to grow the cannabis industry to a larger level than ever before. The legal market in Canada has also benefitted from substantially lower taxes and prices than most legal markets, meaning that consumers will likely think twice before choosing to purchase cannabis on the black market.
The next big piece of news to hit the market comes from the fact that Jeff Sessions may be backing down in his strong opposition to the cannabis industry. Many high-up officials in the federal government have been working to go up against Sessions measures, cementing protections for the individual states right to sell cannabis statewide. The federal legislation of cannabis in the U.S. has been the largest reason that the cannabis industry has not been able to reach its full potential nationwide. It does look as though the industry is heading in a positive direction over the course of the next several years, as more positive legislation is put in place by those who support the public sentiment.
The cannabis industry as mentioned prior is still very much in its infant stages, which means that there is a large amount of room to grow in all respects. The next coming years will be extremely instrumental in seeing how the industry begins to function on such a large level throughout North America and beyond. Only time will tell how much success this market can really see in the foreseeable future.