Experts project “high” expectations for MJ industry in the decade to come.
Marijuana industry is swiftly pacing ahead to become mainstream in the U.S., thanks to the lawmakers. 18 states along with Washington have already legalized recreational cannabis for adults above the age of 21. Now, Senate Majority Leader Chuck Schumer along with two other Democratic Senators have revealed the 30-pages long Cannabis Administration and Opportunity Act that aims at federally legalizing the substance throughout the U.S.
- Senate to vote for Cannabis Administration and Opportunity Act later during this year.
- Lawmakers aim at federally legalizing recreational marijuana, nationwide.
- Number of Democrats in support of legalization increase, Republicans fall skeptic.
- Revenue, sales, jobs, and capital of the marijuana industry broke records even during the COVID-19 outbreak.
The landmark cannabis reform bill is scheduled to be formally introduced later during this year and advocates for the right of states to formulate their own policies on substance use.
Having said this, the marijuana market is waiting to see its $100 bn dawn in the coming decade. The prospects of the Cannabis Administration and Opportunity Act to pass through the Senate might appear slim, but that hardly matters given that a significant size of the U.S. has already legalized recreational marijuana.
$100 BN MARIJUANA INDUSTRY IS ON ITS WAY
The marijuana industry was already a $13.6 billion industry back in 2019 when it was deemed illegal under federal law. A Pew Research survey revealed that 67% of Americans support the legalization of marijuana, which is more than double the figure in 2000 at 31%.
The poll conveys the change in mentality of masses towards cannabis. Not just this, the projection depicts that at some point in near future, marijuana will be fully legalized by the U.S.
In 2019, marijuana companies raised $116.8 billion according data published by Viridian Capital Advisors. The nationwide cannabis sales increased by 67% in 2020. With the onset of pandemic and the fear of being locked up in home for months, Americans stocked up as much as $18 billion worth of marijuana last year. Even after the reopening of the economy, dispensaries continued to register increased order size and therefore, revenue in 2020.
Apart from the masses, the political support to the legalization of marijuana has also witnessed a shift in the past few years. Currently, 83% of Democrats support legal cannabis as compared to 71% between 2018 and 2020.
Republicans, on the other hand, are becoming skeptical for voting in favor of marijuana. 48% of Republicans are in favor of legalization of recreational marijuana as compared to 53% between 2018-2020.
While a total of 18 states and D.C. have legalized the recreational marijuana as of now, the count of states with legal medical cannabis reaches 35 along with District of Columbia.
In 2019, Cowen Vivien Azer, a leading cannabis analyst for Wall Street, predicted that the cannabis industry in U.S. alone will amount too $80 billion by 2030. However, this industry outperforms the projected figures every year. The new figure has been estimated to a whopping $100 billion by 2030.
THE UNSTOPPABLE CANNABIS WAVE TO TAKE OVER U.S.
Despite the COVID-19 outbreak, several states outperformed the previous years’ sales in 2020. These include California, Colorado and Oregon. In addition to sales, salaries for the senior level marijuana industry professionals also recorded a significant hike. The Director of Retail Operations for Dispensary General Manager, for example, recorded a 22% increase in the paycheck. The number of jobs in the industry are projected to reach the magic number of 20,000 in the next 5 years.
In the wake of reforms and massive support to the legalization of marijuana, marijuana stocks are also increasingly becoming some of the most promising bets of the Wall Street. Marijuana stocks have actually outperformed the market expectations, especially after New York legalized recreational cannabis earlier this year. Over the past 12 months, MJ has recorded a return of 61.8% beyond the 43.5% total return of Russell 1000 index.
Given the market sentiments, increasing support and interest of lawmakers to legalize recreational marijuana, $100 billion by 2030 doesn’t seem a far-fetched figure.
Potpreneurs, associations, and organizations are actually coming together to create the U.S. Cannabis Council (USCC) to “align and unify its members’ collective voices to advance cannabis reform” and also to “focus on securing federal reforms that advance social equity and promote fair, safe, and well-regulated markets nationwide as states continue legalizing cannabis at a rapid rate.”