How Big Can the Cannabis Industry Get?: An Economic Overview

Business Insider Cannabis Graph

Where to Begin?

 

The cannabis industry is one that many economists, and stockholders have had their eye on for quite some time. However, given cannabis’ difficult legal history, many were avoiding the risk of investing in the legal cannabis industry.

 

Marijuana stocks have always been one that economic strategists have been pushing for people to invest in for quite some time. Medical marijuana stocks have been the rage for quite some time, as they are extremely high quality products that provide medicinal benefits to their consumers. 

 

Cannabis products in general however, have had many issues getting off the ground again due to its legality. Legitimate cannabis farmers, and owners of cannabis farms, have struggled until the legal market had sputtered to legitimacy. 

 

Up until very recently, these legal farmers have had to deal with an illegitimate black market, and those within it can undercut their prices due to a lack of taxes, or oversight.

 

Cannabis stocks, and the market in general is projected to grow upwards of 30% in the year 2021, up to a $92 billion industry. By 2025, it is projected to grow to upwards of $160 billion in 2025. This is a growth of upwards of $50 billion in 4 short years. There is great opportunity for anyone willing to put money into the industry to make a notable return.

 

cannabis industry

 

Where is the Cannabis Industry going? What are the Trends?

 

The cannabis business is one of innovation. With the marijuana industry not being federally legal, yet, these businesses have had to “stay on their toes”. There are a number of growing trends within the industry, and one of these most definitely has to be vape cartridges.

 

The medical cannabis industry has been involved in cartridges since their inception in the late 2010’s. This is not to say that cartridges have not had their caveats since hitting the market.

 

 In 2018, and 2019, there was growing concern over a vaping illness that was being linked back to illicit THC cartridges. 60 deaths have been linked to this controversy, and again exposes what happens when there is an unregulated, black market due to prohibition. It happened with alcohol, cannabis is no different.

 

When dealing with cartridges, it is important to make sure that they come with a certificate of analysis to ensure that the product has been tested, and is meant for human consumption. 

Cartridges

 

 

 

Delta 8 THC is also a booming trend within the cannabis industry, and has gained a lot of its traction due to the fact that it is THC that is derived from hemp plants. While present in the cannabis plant as well, Delta 8 that is cannabis cultivated is still considered federally illegal. Interested in Delta 8? Look no further than right here.

The difference in chemical structure between Delta 8, and Delta 9 THC is typically what is highlighted when speaking about their differences as substances. Delta 8 has presented less side effects than its Delta 9 counterpart, and the 2018 Farm Bill made the substance federally legal.

 

 One of the side effects of cannabis is increased heart rate, and with Delta 8, this side effect has been shown to be much less present. This is due to the differences in the carbon double bond between the two substances, this slight difference makes Delta 8 less psychoactive, while offering a near copycat experience in terms of body relaxation.

 

Cannabis Sales: The New Way to Get Rich, Legitimately

 

Cannabis sales have come a long way from picking up a dime bag behind a 7/11 at 3 in the morning. There is a legit, clean, and quite frankly, awesome process to obtain marijuana nowadays. The new dispensaries that are coming out every day it seems are increasingly nice, and offer tremendous services to their customers.

 

Dispensaries such as Ethos and Columbia Care have opened in the Wilkes Barre area, with great success. These are booming businesses that are quite literally limited by the government in how much money they can make. If either one of these dispensaries were able to be recreational, there would be lines wrapped around the doors, daily. The numbers also indicate that this will become the case.

Dispensary

Business Insider recently published this graph projecting cannabis sales growth by 2030, from $51 billion, up to $100 billion. These numbers are staggering, because that would indicate up to 100% return on investment within the industry, which is something that even many larger electronic companies cannot compete with.

 

Business Insider Cannabis Graph

 

 

 

This is an industry that is clearly on the rise, the numbers would indicate that. At this point, it is on the government, both at the federal and state level to decide what they would like to do with cannabis. It is clear that prohibition does not work, not for alcohol, and certainly not for cannabis. 

 

This is a projected upwards of $150 billion back into the United States economy. Given the fact that the country just spent nearly a trillion dollars in COVID-19 relief, the money from the industry is well needed. It is only a matter of time before Washington realizes this, and hopefully legalizes cannabis sooner rather than later.

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