The legal cannabis industry looks promising and is expected to flourish even more as countries and states legalize the product. Uruguay was, in fact, the first country to legalize the use of cannabis for adults. Other countries have also legalized the use of cannabis for medical purposes which have resulted in a lot of benefits such as an increase in revenues for companies and more importantly providing relief to many patients.
In 2017, a 33% increase in sales was generated in North America and the rise of the legal cannabis market has also resulted to an estimated 165,000 up to 230,000 industry related jobs. All of these figures certainly paint a brighter picture for the cannabis industry.
Creating a Butterfly Effect
The success of the legal cannabis industry can lead to a butterfly effect on the economies and industries that are directly involved. At the start of 2018, ArcView Market Research with the participation of BDS Analytics has released an extensive report which gave an estimated increase of the cannabis industry of up to $24.5 billion by the year 2021. The adult use or recreational market for cannabis will cover a majority of the sales while medical marijuana will take the remaining shares.
The report also discussed the following points:
- The cannabis industry in California alone is projected to generate roughly 99,000 jobs by 2021
- More than 60% of the total cannabis industry output in 2021 will come from California, Colorado, Massachusetts, Nevada, Oregon, as well as in Washington.
- The legal cannabis industry is projected to generate up to $2.8 billion in sales taxes by the year 2021.
Another research was spearheaded by the Brightfield Group showed that the global market for cannabis will reach up to $31.4 billion by the year 2021. The study also found that the entire cannabis industry will experience a 60% compound growth rate. Cannabis companies that are based in Canada will mostly benefit from the expansion in South America and Europe. The United States currently holds the largest revenues for cannabis but the figures are expected to go down by 2021 of up to 57%.
The Rise of Cannabis Companies
The global market for legal cannabis was originally valued at $9.3 billion back in 2016 and the market is still increasing wherein it has been projected to experience a significant growth due to the legalization of cannabis in many states in the U.S. and as well as in several countries.
The demand for cannabis whether for recreational or medicinal purposes is expected to increase which will, of course, lead to a significant increase in sales. Cannabis companies or producers are also effectively tapping into the industry by creating more products that are infused with cannabis that serve different purposes. There are now plenty of cannabis-infused products out in the market today which include consumables, resins, oils or tinctures. These products also come in many variations in terms of strains and concentrations.
The projections are created by the professionals in the industry but do keep in mind that they’re just estimates. But the future is bright for the legal cannabis industry and the success of the market will largely depend on the cannabis reform.
For more Cannabis Business News