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The cannabis industry is, without a doubt, one of the fastest-growing industries on the planet. Empires are being built, fortunes are being made, and there’s even a new group of wealthy people cropping up across the globe thanks to cannabis. 

In particular, the United States has witnessed the sheer power of cannabis, with legal sales topping $17.5 billion last year. By the year 2030, Cowen analysts believe that annual sales of legal cannabis in the U.S. will amount to $85 billion. (And that’s fairly reasonable to get mk ultra strain!) 

In the second half of 2021, cannabis-related investments jumped 82%. Since cannabis presents consumers with ample benefits, from the plant’s apoptotic effects to its anti-inflammatory qualities, there’s no wonder why.  

A recent Kearney study even went as far as to call cannabis “the next gold rush.”  

What Does the Cannabis Industry Entail? 

Cannabis has emerged from the smoke clouds as a multi-billion-dollar industry that has gained a solid footing in various retail avenues, including agriculture, healthcare, consumer goods, and pharmaceuticals. 

In terms of cannabis healthcare, products may include infused lotions and balms and sprays, salves, supplements, and orally consumable tinctures.  

When it comes to the agriculture industry, cannabis farmers are experimenting with new techniques to produce cannabinoid-rich plants for pharmaceuticals. In 2020, the global cannabis pharmaceuticals industry earned $107.3 million.  

People who are interested in getting involved in the space should focus on two types of businesses in the market, including: 

  • Ancillary Cannabis Businesses – Examples of ancillary cannabis businesses, “non-touching” businesses, include investment, professional legal services, packaging, security, equipment, and construction. 
  • Plant-touching Cannabis Businesses – Examples of plant-touching cannabis businesses include breeders, cultivators, dispensaries, transportation, and logistics. 

Growth Factors for the Legal Cannabis Industry 

Like it or not, cannabis is here to stay. Deeply rooted in history, the plant is being recognized more and more for its abundant uses (not to mention its profit potential in the world of business.) 

Let’s find out what is stimulating the cannabis industry’s growth: 

  1. Growing Acceptance and Legality – The number of people reaching for a box of edibles is rapidly rising, as is the pressure to legalize cannabis at the federal level in the U.S. More states are jumping on the “Green Express”, with 18 U.S. states already legalizing the plant in its entirety. Aside from the U.S., many other countries across the globe have (to some extent) embraced legal cannabis, or are at least considering it. For example, the European countries of Luxembourg and Malta have decriminalized the plant, whereas Ukraine and Canada have already fully legalized it. 
  1. Continuous Product Innovation – With such a vibrant ocean of consumers, it is easy for the cannabis industry to dive into innovation. Many people are pleased by cannabis’ diversity since it can be used in various ways, and therefore, producers are open to experimentation. Based on a report by MJBiz Daily, innovation is shifting product demand. Some of the most popular cannabis products circulating the market include flowers, pre-rolls, topicals, vape pens, drinks, edibles, and more. 
  1. Increasing Body of Scientific Research – The evidence to suggest that cannabis is a medicinal powerhouse plant is growing by the day. For example, this study revealed that cannabis has natural pain-relieving effects, while this study confirmed that cannabis has anxiolytic effects. More research is due to take place this year. Now that the Drug Enforcement Administration (DEA) has decided to review cannabis research applications previously postponed for years, we will likely see more proof that the plant’s properties begin to surface. 
  1. Swelling Consumer Demographics – As a direct effect of this growing body of research, more people are opening up to using cannabis for medicinal and recreational purposes. With continued consumer growth, the market is anticipated to keep maturing. In a recently published white paper titled “Breaking Stereotypes: Getting to Know the Cannabis Consumer, Euromonitor,” a handful of cannabis consumer archetypes were spotlighted. Based on the findings, 24% of seasoned consumers use cannabis to enhance their wellbeing, whereas 48% of casual cannabis consumers believe that legal cannabis should be as accessible as alcohol and tobacco. 
  1. Money-Making Potential for Business Owners and Investors – It is becoming increasingly difficult for the business-minded to look at cannabis without dollar signs flashing in their eyes. After all, the market is unique and is already worth billions. Consequently, this is attracting investment and business opportunities on a global scale. The cannabis stock market is reaching pinnacle highs as of late, with many big-name traders seeing spikes in the value of publicly-listed companies. Despite the extreme volatility in this sector, the rollercoaster ride presents an opportunity for lucky investors to cash in on the cannabis industry seriously.  

Conclusion 

As many mainstream companies continue pondering over their involvement in the cannabis industry—particularly business owners who rely on proper banking and payment methods to stay afloat in their respective sectors, including MasterCard, Square, Shopify, and Visa—other entrepreneurs are acknowledging a lucrative market. 

Despite the growth we have already witnessed, there’s no point in ignoring the fact that the legal cannabis market is stunted by lack of access to banking services and federal prohibition. On the other hand, with Rep. Earl Blumenauer (D-OR) recently saying that there is ‘tremendous momentum’ to pass cannabis banking, things appear to be moving in the right direction. 

By admin

Writing and blogging is my passion. Providing meaningful information to readers is my object.