The marijuana industry is on the rise. And, with many states starting to legalise it for recreational use, it is possible that marijuana could prove to be a massive catalyst for economic recovery in the United States and other parts of the world.
During the US elections in November last year, all five states that put legalisation on the ballot approved differing measures for the legalisation of marijuana, including Montana, Arizona, New Jersey, South Dakota and Mississippi. This takes the total of 15 states that have voted for full legalisation, while some 36 have legalised it for medical use. This is likely because 68% of US adults support the legalisation of marijuana, a massive rise from the 50% that Gallup polls recorded a decade ago. Support was a little over 30% 20 years ago, and as low as just 12% way back in 1969 when Gallup started recording public views on marijuana legislation. It seems to only be a matter of time before it is legalised at the federal level.
And, make no mistake, the legalisation of marijuana is not only popular among Americans, but it’s growing in popularity all over the world. Countries like Chile, Columbia, several European nations, South Africa and Jamaica have all legalised marijuana to some extent or another. Furthermore, the U.N. accepted marijuana for medical use, and a new era of growth has begun.
As a result, there is a lot of interest from investors to get into the industry, with stock prices in Cresco Labs Inc rising by 40% since the start of 2021 and Tilray Inc. rising by almost 20% on 14 January alone. This is largely due to legalisation, especially the momentum that’s been gathering on the issue in the United States. Fire & Flower achieved Q3 revenue of $33.1 million – an increase of 142% from the prior year.
In fact, the marijuana industry as a whole is expected to be valued at $23 billion in the United States three years from now, a 21% growth rate from 2019. Globally, the marijuana industry is expected to be valued at $146.4 billion by 2025.
Consequently, it was suggested earlier this month that the marijuana industry in Michigan could serve as a springboard for racial equity in the state, according to The Detroit News. Similarly, Cannabis Tech Today found that the marijuana industry has the potential to lead the way to recovery for global tourism. And, according to New York Times, the idea of marijuana tourism is on the rise, with Thailand and Mexico planning legalisation and “Cannabis tours”. This also allows for the creation of different strains of marijuana, with plant imports from one part of the world to another likely to lead to a mixing of strains exclusive to one region to those of another.
All-in-all, the rise in marijuana’s popularity the world over, legislators keeping pace, investor confidence and a multi-billion dollar industry could create economic opportunities that we didn’t have a decade ago. And with the world caught up in a Covid-induced economic meltdown, perhaps it’s time to look at this promising industry, fully legalise, allow businesses to thrive and watch tax revenues that were previously lost to a black market increase. 2021 will be a very exciting year for marijuana though, and of that, there is no doubt.