Become A Featured Company

How Big is the Cannabis Industry?

Kelly Weimert

April 20th, 2017

Policy, Top News

The cannabis industry is shaping up to be hugely expansive as unprecedented legality and accessibility on the state level open the door to major opportunities for cannabis sales and businesses, both recreationally and medicinally.

Some analysts estimate that the legal cannabis industry in the United States will grow to $50 billion by 2026 — eight times the size it is now — as more and more users in the illicit market opt to patron lawful marijuana sellers, as well as more patients seek medical cannabis as alternative pain and treatment management.

Impact of the Rise of the Cannabis Industry on Big Business

How, exactly, this boom will affect businesses remains to be seen partly because of federal restrictions on the drug, as well as its unprecedented nature, but the prospective financial implications are sizable.

Currently, the cannabis industry is largely comprised of small startup businesses. The plant’s lack of federal legality has likely caused bigger companies to stay away from it as a viable product until full, country-wide access becomes a reality.

That said, should the federal government lift their limitations, it could mean huge opportunities for big tobacco companies. Analysts predict tobacco businesses will be able to increase their revenue, on average, by 20% due to cannabis sales, and that these tobacco companies will make up one-fifth of the industry by 2036.

Alcoholic beverage-makers, on the other hand, should be concerned if they have no plans to join in on the cannabis boom. In the past five years, alcohol consumption, particularly among men, has notably declined while cannabis use has risen. Moreover, the population of people who drink and take cannabis has increased while people who take cannabis but don’t drink has decreased.

Regardless of which companies can expect to profit from cannabis industry growth, we’re likely to see industry changes on an unprecedented scale.

How the United States’ Cannabis Industry Compares to Canada

For those aiming to make more accurate predictions about the U.S. cannabis industry’s future, some insight can be gleaned from the way our northern neighbor is responding to marijuana’s increased legality.

Canada’s decision to legalize marijuana recreationally across the country has led some analysts to predict the market to soon be worth close to $22.6 billion.

Approximately $8.7 billion of that is estimated to come from the plant’s retail market, while marijuana products and services — like growers, testing labs, and lighting and security systems — are expected to bring in the rest. And that $22.6 billion number might reach even greater heights after factoring in taxation, fees for licensing, and tourists seeking a cannabis-infused experience.

Implications for the Future

Despite the cannabis industry’s apparent vast economic potential, what the future holds will depend on the United States’ willingness to legalize the drug on a federal level.

Prior to the most recent presidential election, stocks were being traded with an optimistic bent toward the presumption that an increasing number of states will vote yes on legalization. And, this optimism isn’t without basis given the recent Gallup Poll which showed American support for legalization to be 60% (up from 35% in 2005).

That said, since President Trump took office, the future of the cannabis industry is more unclear. In part because of his wishy-washy stance on the matter and in part because of Attorney General Jeff Sessions’ vehement opposition to cannabis use. In fact, Jeff Sessions at one point has even gone so far as to say, “good people don’t smoke marijuana.”

Still, with an increasing majority of Americans supporting federal legalization of cannabis and mounting evidence as to cannabis’ effectiveness in relieving myriad illnesses, it’s not unreasonable for investors and consumers to bet on the future of the cannabis industry to be promising, regardless of the current administration’s beliefs.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Kelly Weimert

Kelly is a full-time freelance writer based in Austin, TX. A happy hybrid of geek and hippie, when she's not nestled into her couch crankin' out crafty prose with her miscreant Chihuahua, you can find her frolicking outside to keep her sanity in check.

Network Partners

Follow Us on Social Media

LinkedIn

About CFN Media Group

CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.

Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.

Copyright © Accelerize Inc. · All Rights Reserved · Privacy Policy · Legal Disclaimer

loading