The cannabis industry is booming in the United States. The legalization of cannabis for medical and recreational use has created a whole new market for the plant. From a California grower to a New York cannabis microbusiness, entrepreneurs are flocking to take advantage of the lucrative opportunities presented by the rapidly-growing industry.
Why is the cannabis industry growing?
With sales of medical and recreational cannabis increasing steadily each year, the cannabis industry is growing robustly. According to Bloomberg, the legal cannabis market in the US is expected to expand several times its current size to be worth a cool $50 billion by 2026. As more states legalize cannabis and more consumers buy cannabis products, those numbers are likely to increase.
Medical cannabis is gaining acceptance
The primary contributor to the growth in the cannabis industry is the public’s increasing acceptance of cannabis as a legitimate form of medicine. Consumers are more educated on the health benefits of cannabis and the demand for the product is rising accordingly. Medical cannabis has been proven as an effective treatment or management option for illnesses and disorders ranging from mental health issues to chronic pain and HIV/AIDS.
Online stores make it easy
Online cannabis distributors make it more convenient for consumers to source and purchase cannabis in all its forms. Consumers who have traditionally found it difficult to find quality cannabis now have the benefit of easy access. People can order cannabis online and have it delivered directly to their door, saving both time and effort. They can also avoid any lingering stigma that is associated with visiting a cannabis dispensary in person.
Legal restrictions are abating
Another reason for the rapid growth of the cannabis industry is the fact that new laws and regulations have opened up fresh opportunities for the industry to grow. In 2014, the US government approved the use of cannabis for medical purposes in 23 states. Today, medical cannabis is legal in 37 states, three territories, and the District of Columbia. The number of states that allow the sale of recreational marijuana is also on the rise.
Public and political support is increasing
The change in government policy reflects how public opinion has steadily shifted in favor of cannabis legalization in recent years, with the majority of Americans now supporting legalization. This growing public support for cannabis legalization is reflected in the attitudes of elected officials as well—but for more than just vote-garnering reasons. Legislators have realized the numerous economic and social benefits of legalizing cannabis.
States are seeing financial and social benefits
The legal cannabis industry has contributed to a significant increase in tax revenue for state and local governments. This much-needed infusion of tax funds allows these regions to invest in education and other social programs. At the same time, legalizing cannabis helps to eliminate the illegal market for the substance, which is thought to be a key factor in reducing the number of crimes related to drug dealing, gangs, and cartels.
Legal cannabis is creating jobs
Furthermore, the legalization of cannabis creates more jobs, which help reduce the unemployment rate and improve the socio-economic prospects of the jurisdiction. According to the 2022 Leafly Jobs Report, 428,059 full-time equivalent jobs are supported by the legal cannabis industry in the US. These positions include direct jobs like cultivation work, ancillary jobs such as accounting, and indirect jobs like public relations.
Problematic prohibition is avoided
Finally, the legalization of cannabis eliminates some of the problems caused by cannabis prohibition. This includes racially-biased enforcement—where Black and Latinx people are arrested more frequently than white people for the use of cannabis due to entrenched structural bias. In addition to preventing the unnecessary criminalization of thousands of people, the legalization of cannabis has saved jurisdictions millions of dollars in administration and court costs.
What industries use cannabis?
It is key to note that cannabis is not a mere one-dimensional product. Industries that use cannabis as a product include health care, food and beverage, and hospitality. Products that contain cannabis and its abstracts range from prescription medication to bath bombs. The health care industry uses cannabis for many medical purposes, including anxiety reduction, chronic pain relief, nausea management, and epilepsy treatment.
The consumer good industry uses cannabis in bath and beauty products as well as clothing. Hospitality facilities use cannabis products for aromatherapy and spa experiences, while the food and beverage industry has created a myriad of tasty cannabis-infused products from cookies to gummies and even cannabis pizza.
Aside from direct uses, opportunities are popping up around the social and community aspects of cannabis, thanks to cannabis culture becoming increasingly mainstream. There are sites that review cannabis products and dating sites that connect cannabis lovers. There are even apps that simulate cannabis strain growth to help people learn more about cultivating their own plants.
How to make the most of the cannabis industry boom?
If you are interested in getting a slice of the cannabis pie, there are many ways to get into the industry while it is still in its infant stages. There are cannabis business consultants that can help you draft business plans and work out how to get licensed to start running a legal cannabis business. New players and strategic partnerships in the industry promote healthy growth that allows producers to meet the growing demands of consumers.