The growing spread of cannabis acceptance has spanned nations and continents in quick succession in recent memory.
In late June, Justin Trudeau announced that cannabis sales will begin this October, with Canada set to become the second country to legalize marijuana for adult use. Germany legalized medical marijuana in March of 2017, and across the pond, top UK medical advisor Professor Sally Davies recommended medical cannabis in part one of a current cannabis scheduling review.
Closer to home, 30 U.S. states, including Oklahoma, have now legalized medical cannabis. The newest of 9 adult use cannabis marketplace is set to open alongside Massachusetts Medical Marijuana Dispensaries in New England, although they have faced some friction beginning sales.
As cannabis advocates and enthusiasts wait patiently for new adult use laws to be actualized here and abroad, entrepreneurs and investors have swooned over legal cannabis’ marketplace potential.
The Cannabis marketplace may break 100 billion dollars in the next decade
Recently, the ArcView Group estimated that the world cannabis market would reach near 57 billion dollars in 2027. An analysis by European investment bank Bryan, Garnier & Co. went one further, estimating a 1000% increase by that time, near 110 billion dollars. Cannabis’ newfound acceptance and legality has become a huge opportunity with many vying to be on the ground floor of the growing industry.
Despite their late start of sales, Canada is set to become a leader in this new international cannabis market. As the first developed country with nationwide cannabis legality, stocks of Canada based licensed cannabis producers have become hot tickets, specifically because of the country’s more lax regulations allowing the U.S. owned companies to list on their exchanges.
The Canopy Growth Corporation of Ontario was the first publicly traded cannabis company on the New York Stock Exchange and has amassed 40 million dollars in revenue in both American and Canadian markets since going public. One organic cannabis producer, The Green Organic Dutchman, began trading on Toronto’s exchange this May and has already raised 101 million dollars from it’s IPO.
As cannabis entrepreneurs pioneer the modern cannabis market, it’s important to note the challenges that they face moving forward.
As the new market begins to develop, legal providers of cannabis seek to differentiate their products
While 30 American states allow cannabis for medical use, and 10 states and provinces, including the nation’s capital, allow cannabis for adult use, the conflict between federal and state law often hamstrings American cannabis providers and business’s ability to work with banks, sell stocks, and other standard business practices.
By keeping cannabis’ legality in limbo, America’s booming cannabis market may risk falling behind Canada’s and others as more countries follow suit and update their laws.
Through nationwide legalization, Canadian legal providers of cannabis avoid shortfalls, while reaping many benefits. In terms of the future market, investors note that legality allows for more products of a wide variety, along with products outside the sphere of typical cannabis flower, like marijuana-infused food, drinks, topical creams, etc. This may be a key development in cannabis branding and normalization, as Bloomberg speculates marijuana sales may surpass soda sales by the end of the 2020s.
By legalizing cannabis federally, Canadian legal providers are positioned to enter the cannabis export trade, leading to a potential boon alongside domestic sales. Lastly, even non-cannabis specific markets, like Canadian tourism, will see increased activity due to cannabis legality, with one Canadian province poised to allow hotel guests to smoke cannabis.
As cannabis acceptance grows, more opportunities will present themselves for expansion of the cannabis marketplace. One thing is for sure, cannabis and its proponents are not going anywhere anytime soon. The general acceptance of cannabis appears closer on the horizon than it’s general prohibition, and businesspeople and investors alike are preparing for a world with legal weed.
About the Author
Chris Matich is a professional writer, journalist, and editor living in Pittsburgh, PA. Chris blogs for Schenley.net. His writing interests include LGBT+ people/issues, sports writing, and blogging. Chris currently writes about web optimization, blogging practices, medical cannabis, and cannabis lifestyle. He writes fiction and creative nonfiction in his spare time. Linkedin, Twitter.