The cannabis industry is projected for some record growth over the next few years. So far, eleven states have legalized recreational marijuana and 33 states have laws concerning the availability of medical marijuana. The Farm Bill of 2018 made the cultivation of hemp legal, allowing for the hemp industry, including the availability of CBD oil to take off.
Market research indicates that sales in the legal cannabis industry will be worth $25 billion by the year 2025. Sales in the medical cannabis industry are expected to be worth $13.1 billion. Keep in mind that this is just a forecast for the sales of the cannabis flower. Other products are also seeing unprecedented growth: edibles, vaporizers, and cannabis-infused drinks.
Cannabis trends can be difficult to predict due to the federal prohibition on cannabis. However, these are the things that any cannabis connoisseur or investor should look forward to in 2020.
High Growth Rate
As mentioned above, cannabis sales are only predicted to grow. For instance, on July 4th alone, there were more than $400 million in cannabis sales. Globally, the CBD market alone could reach $22 billion by 2022. Although these are just projected numbers, it is a good indication of where the market is heading.
The Legalization Process Will Grow Faster
Public support of cannabis legalization is at an all-time high. This includes among conservative voters, who have historically been against legalization. There are initiatives for legalization in New York, Connecticut, New Jersey, New Mexico, Rhode Island, and Minnesota. States are beginning to see the tax income benefits that Colorado, Washington, and California are reaping and they want in, too.
On a federal level, things are much cloudier. While the Democratic-controlled House supported the MORE Act, the act all but died in the Senate, which is currently Republican-controlled. However, with the 2020 elections looming, rescheduling cannabis is at the forefront now more than ever.
More Types of Cannabis Products Will Be Available
There will not only be more cannabis products available, with cultivation legal in several states, but new strains are guaranteed to be bred. Cannabis-infused beverages are becoming more popular and more readily available. Molson-Coors and Coca-Cola are considering CBD-infused beverages.
Edibles are also going to see an increase in popularity. In 2018, CBD gummy sales grew by 925%. CBD chocolate sales grew by 530%. With the passage of the Farm Bill, manufacturers not previously involved in the cannabis industry may begin making their own CBD-infused offerings.
The Awareness of the Benefits of Cannabis Will Grow
Customers will become increasingly aware of the benefits of cannabis. Not only will word-of-mouth help to spread awareness, so too will the internet of things. As more people suffering from serious conditions begin to try cannabis and see improvement, word will spread. Included in this is the knowledge that THC and CBD are not the only beneficial compounds and terpenes cannabis has to offer.
Cannabis Stocks Will Make a Good Investment
With the high chances for market growth that are predicted, investing in the industry is likely to produce results. Corporations that aren’t involved in the industry are increasingly likely to invest in the form of distribution deals, product designs, and investment in producers.
Individuals aren’t being left out of the process, either. Cannabis stocks are available in both America and Canada, and individuals looking to cash in are buying in.
As more states legalize and with the hopes that the United States will follow Uruguay and Canada and legalize nationally, the market is perched on a precipice that could mean explosive growth. This includes not only those cultivating and processing the flower, but those in satellite industries. Vaporizer manufacturers, juice manufacturers, edible producers, and all the industries who produce the lighting, fertilizers, and other needs to grow cannabis are also likely to see growth. There’s a lot to look forward to, and a plethora of investment choices.