Cannabis Industry Valued at $63.5 Billion by 2024
Cannabis Industry Forecast to Be Worth $63.5 Billion
According to Ameri Research Inc., the cannabis industry value was at $14.3 billion in 2016. But because of legalization efforts across North America and Europe, they are forecasting a 21.1% CAGR from 2017-2024, totaling sales of $63.5 billion. Just to be clear, this research report spans North America and Europe, with the US accounting for 49% of the total valuation. According to the report,
Due to the high entry barriers, the market is dominated by the public companies with huge financial resources. The smaller companies with high valuation find it difficult to sustain the long-term competition, and therefore creating opportunities for mergers and acquisitions in the market.
This conclusion is a little disconcerting since new entrants are going to find it difficult unless they have a technology or process the big boys don’t have. So, is it too late to enter the cannabis industry? Not quite. You could still invest in the companies mentioned in the report, such as United Cannabis Corporation, Corbus Pharmaceuticals, GreenGro Technologies, Inc., Arena Pharmaceuticals, Cannabis Sativa, Inc., Cara Therapeutics Inc, Lexaria Corp, International Consolidated Companies, Inc., GW Pharmaceuticals, Canopy Growth, Insys Therapeutics, Aurora Cannabis, Axim Biotechnologies, and others. Good luck and ride the wave.
WeedUpdate from Across the Country
The cannabis industry is growing fast despite the push by the Trump administration. They better be careful, or the Democrats will make this a focal issue, which will help them win. According to the US News and World Report, they have already begun thinking about this strategy. Could Trump be a one-term president? It’s very probable, especially when you are perceived as messing with the livelihoods of people, and have no compassion for people in pain. It just hits too close to home.
California
Since the legalization of recreational marijuana in the golden state, many illegal delivery services have flourished, but only because WeedMaps is allowing anyone to advertise on their platform. Apparently, the state has sent them a letter not to allow illegal delivery services, so we’ll see what happens. Unfortunately, the dispensaries that are licensed to deliver have only seen a slight increase in business since legalization because these illegal delivery services are not paying taxes and are not paying to test their product(s). The recreational market is only a few months old, so it will take some time to fix these initial problems.
In other California news, State Assemblyman Ash Kalra (D), introduced legislation that would call for the Veterinary Medical Board to design procedures to allow the administration of medical cannabis for animals. All mammals have an endocannabinoid system, so marijuana will have similar medicinal effects that it has on humans.
Finally, Assembly Bill 2402 has been introduced to guarantee privacy for recreational cannabis users by banning pot shops from disclosing their customer list. However, if the feds wanted the record, they can still get it since cannabis is still illegal under federal law.
Colorado
Colorado also has its issues with a growing black market after the legalization of recreational cannabis. According to the Gazette,
“The Colorado Department of Public Safety, which tracks various marijuana-related statistics, found that manufacturing arrests leapt from 126 in 2014 to 476 in 2016.”
However, cannabis-related cases filed with the courts have fallen by 80% with an increase in felony charges of almost 60%. Officials are happy with the amount of tax revenue the state is receiving but are hopeful that things will stabilize soon. Nonetheless, the amount of black market marijuana seized is only a fraction of the legal cannabis market – 1% to be exact, so it’s not worth worrying about it.
Indiana
House Bill 1137 says that hemp products and CBD are not marijuana products, and therefore do not violate federal or state marijuana laws. Great news for the hemp industry, but even better news for Indiana farmers that can now cash in on this cash crop.
Kansas
Kansas is one of the states with no laws legalizing marijuana. Recently, efforts to legalize medicinal cannabis, CBD, or even industrial hemp are encountering a serious hurdle. The reason is Kansas Attorney General Derek Schmidt sent a legal opinion that CBD is still considered part of the cannabis plant and is illegal under federal and state laws. It’s individuals like these that make the lives of millions of people miserable. Contact your legislators and let them know that you support the prescription of CBD to people with pain and other inflammatory diseases. Also, remind them that CBD does not get you high and is backed by countless of independent research.
Maine
Even though the law in Maine allows individuals to grow six cannabis plants, lawmakers want to make it 3. The concern is that if four people live in a house, then that is 24 plants, which is a lot of weed that the black market could use. The bill won’t get a final vote until this week.
New York
Efforts in the empire state for marijuana legalization just got a new push. During a recent workshop, celebrity Montel Williams spoke to 150 people about his experience with cannabis managing his pain. He also mentioned that marijuana could be the only exit out of opioids, which has caused an epidemic over past few years. New York could be very close to passing legislation to end marijuana prohibition.
Oklahoma
Oklahoma has decriminalized marijuana for first offenders, but now there are efforts to push for medical marijuana. This new effort is sound and compassionate policy for people with pain to be able to manage it without the need to take opioids. Contact your legislators and let them know that you support SQ788.
Pennsylvania
Almost two years after medical marijuana was legalized, six dispensaries just opened their doors to the public. 3,000 Pennsylvania residents have obtained medical marijuana cards, which will help them in pain management and is a welcome alternative to opioids.
We hope you enjoyed this WeedUdpate about the growth of the cannabis industry and the efforts of cannabis legalization nationwide. Please support us by connecting with us on Facebook, Twitter, Instagram, and YouTube. Also, sign up for a WeedUpdate straight to your inbox.
