Rising Demand For Marijuana In The U.S. Is a Good Sign For The Cannabis Industry
Although COVID has had a detrimental effect on the world, marijuana stocks have managed to grow in light of it. As the pandemic started to impact the U.S. in a big way, many major pot stocks to watch took hard hits in their prices. But, soon after the pandemic showed that demand for marijuana was greater than ever. The reason behind this demand increase is two-fold. On one hand, a large majority of states with legal cannabis decided to make marijuana sales an essential business during the pandemic. Not only did this highlight the importance of pot stocks and legal cannabis in the U.S., but it also greatly increased access.
The second reason behind this is simply that more people are at home than ever. And what do people do when they’re at home with nothing to do? Well, some turn to cannabis, which is what we have seen in the past few months. This data has helped to show that the cannabis industry could shoot past $15 billion in sales by the end of this year alone. In several states, the dramatic increase in sales means that the $15 billion mark is more in reach than ever before. But just how will this happen? Let’s take a closer look at marijuana stocks and the cannabis industry in the U.S.
The U.S. Reports Record Marijuana Sales in Many Cannabis Industries
Around the nation, sales for cannabis have been up at record highs. In some states like Florida and Arizona, where cannabis is still only legal medicinally, they have reported more sales than ever before. This is a solid sentiment because it shows that even in the smaller markets, demand is up. In more prominent statewide markets like Colorado, sales for the year are so far at almost $200 million. This is an unprecedented amount, and shows just how fast the cannabis industry is growing.
Major marijuana stocks like Curaleaf Holdings Inc. (OTC:CURLF) have a big part to play in this. These cannabis stocks have helped to offer the supply of marijuana, and the places to purchase it. And with so many states setting records for cannabis sales, predictions continue to show that $15 billion is the number to reach by the end of the year. This would be a major accomplishment for the industry. Many believe that this could also help to show that federal cannabis legalization is needed more than ever.
What’s Next for the Cannabis Industry?
By 2024, studies are showing that legal U.S. cannabis could hit double that number which continues to excite cannabis stock investors around the industry. But, in order for the market to grow, we need to see proper laws put in place by the federal government. In addition to this, we also need to see the coronavirus pandemic, begin to slow down. COVID has hurt the tourism industry at an almost fatal level.
With that, many statewide cannabis markets that rely on tourism, have seen massive losses. For now, however, it seems like COVID will hopefully be a short term issue. Many hope that this terrible illness will begin to slow down in the coming year. If that sentiment remains true, there’s no telling how far the cannabis industry and pot stocks could go as we move into 2021.