Cannabis Is Now Legal For Recreational Use In New York, Virginia, New Mexico, And Connecticut
Following the legalization of cannabis in 2020 in USA states such as Montana, Arizona, New Jersey, South Dakota and Mississippi, several more states have recently voted to legalize the use of cannabis, such as New York, Virginia, New Mexico, and Connecticut. This could drastically increase the financial growth in the cannabis industry, due to the massive increase in potential cannabis consumers. 8.4 million people live in New York, 8.5 million live in Virginia, and 3.5 million people live in Connecticut. According to a recently published research article on Statista, cannabis sales are expected to reach over $33.6 billion dollars worldwide by 2025.
The factors that seem to drive the spending of cannabis up are the legalization of cannabis in more US states, more market opportunities for investors, business owners, and the growth of current cannabis companies, and the aftermath of the pandemic.
Why We Could See Financial Growth In Cannabis Companies, An Increase of Cannabis Investors
There are many reasons why cannabis sales are expected to reach over $33.6 billion dollars by 2025. One of them could possibly be due to global adoption. As global adoption of legalization of cannabis for recreational use increases, so will the financial growth of the cannabis industry. It’s early for cannabis investors to do well in the cannabis market. Most of the world still hasn’t legalized the recreational use of cannabis. For example, only 18 of 50 states in the USA have legalized cannabis so far. The population of the USA is 329 million, and over time, as more states open up the legal usage of cannabis, the market for millions of potential consumers of cannabis opens up. This means that the potential financial profitability of cannabis investing could be the highest right now.
For investors, the priority right now could be to research the most successful and capable cannabis companies to invest in. What investors may be looking at are cannabis companies that have a USA or global presence. Green Thumb Industries or Curaleaf, both based in the USA and provide cannabis products multi-state, may be two companies that investors could be looking at. Tilray, a Canadian pharmaceutical and cannabis company, incorporated in the United States, might also see investor growth due to their global operations in Australia, New Zealand, Germany, Portugal, and Latin America. Another company that may be looking at an increase in financial growth is Innovative Industrial Properties, which is an American real estate provider for the regulated cannabis industry.
Having more investors, means the opportunity for more company growth, this means a company can have an increase in advertising, additional operations, new brands, new products, and what follows is the potential for more cannabis sales.
The Aftermath Of The Pandemic Could Support An Increase In Cannabis Sales
Along with the increase in legalization of recreational usage of cannabis in the USA, the aftermath of the pandemic could significantly contribute to an increase in cannabis consumers.
Many people may have social anxiety due to the lack of socialization due to the pandemic restrictions, and may feel the need to self-medicate with cannabis products for help with anxiety or building communication skills. Some people may feel depressed or struggle with trauma due to years of their life ruined, or wasted, by the pandemic and the consequences of the mandates, and turn to cannabis for PTSD relief. Perhaps with social gatherings no longer restricted, people may be partying often, and more social gatherings could include the consumption of cannabis. Physical and mental health struggles, social gatherings, and stress will always exist. This is why there will always be a future for the cannabis industry, as the world opens up to the legalization of cannabis.
How do you feel about the future of the cannabis industry? Only 18 of 50 states in the USA have legalized cannabis for recreational use. Are you excited about the possible legalization of cannabis in the remaining 32 states of the USA? What do you think that would mean for the cannabis industry? Let us know in the comments and be sure to follow us @cannalifenet!