How the Cannabis Industry can Continue to Benefit America
Analysts are projecting that the U.S. cannabis industry could add as much as $130 billion into the economy within the next half-decade. This may seem like a lot, but given where marijuana stocks have already taken the market, it begins to make more sense. A new study showed that cannabis sales alone have shot up to around $50 billion as of last year.
This is majorly due in part to the role that pot stocks have played in the American cannabis industry. The study also showed that by 2024, the cannabis industry could sell as much as $100-130 billion in marijuana. Given the rate of growth for pot stocks right now, it doesn’t seem out of the picture that those sales could double. In addition, the global pandemic has resulted in a massive rise in demand for cannabis.
The Effect of The Legal Cannabis Industry on The U.S. Economy
The study continued to document the amount of capital that the cannabis industry will directly put into the U.S. economy. They deduced that there is a multiplier of 3.5 for the collective consumer base and cannabis stock infusion. That essentially means that there will be
$3.50 put into the economy for every dollar that people spend. When we look at the numbers this way, we see that there is no reason why the feds shouldn’t legalize cannabis. The main issue right now is that the federal government all but refuses to take a strong stance on legal marijuana. Major pot stocks like Canopy Growth Corp. (CGC Stock Report), have been waiting for this to occur in the U.S., but to no avail.
The cannabis industry has the potential as we see to put a lot of money into the economy overall. Everything from tourism to the cultivation of cannabis, adds capital to the market. We may think that only the sale of raw flower to consumers constitutes a market value. But, when we account for job creation, manufacturing, packaging, marketing, and more, we see that the industry is much larger than previously imagined. For this reason, these estimates begin to seem more and more likely. Although $100 billion does sound like a lot, it is only a potential stone’s throw away at this point.
What Happens to Marijuana Stocks Now?
Marijuana stocks rely on the cannabis industry and the legalization of marijuana across the nation. Because of this, we will need to see what occurs at the end of the year in terms of further legal measures. As of now, investors believe that more states will begin to legalize cannabis toward the end of this year or the beginning of next. But, until that happens it seems like it is a waiting game.
For now, we can use the current state of the cannabis industry, to decide on which marijuana stocks to watch. But, we know that there is a massive amount of growth that is going to happen in the next decade for the cannabis industry. This means that we should continue to see this growth trickle into the market. It simply comes down to knowing where to look in the cannabis industry.