The marijuana market has evolved dramatically over the last 2 years. Largely due to recent votes in the USA, nearly 30 states are now officially allowed to use medical marijuana for pain management and over 9 states have signed the recreational marijuana legalisation in July 2018. This news has shaken up the whole industry than ever before triggering market expansion that may help generate additional billions of sales in the outgoing year.
Besides the US most lucrative market, both Canada and Germany are to go nationwide with marijuana market as part of legalisation initiative. The Canada X day is due on October 17th where marijuana will be regulated as per provincial laws, which will definitely contribute to the total cannabis sales going forward. The province of Ontario, for example, is drumming up large number of suppliers to sign new promising contracts amid continued growth in the industry. In addition, the provincial governments have switched its model from a public-oriented to a private sector on cannabis sales, which will ease laws and allow discrepancies opening across the country.
Time To Invest
As marijuana stocks continue to hit the markets, you may ask yourself whether it is right time to invest in pot stocks or not? Although our answer would be a strong YES, it all depends on the country where the companies run their cannabis businesses. These are clearly feasible in such countries as Canada and Germany, where the governments have opened and legalised the marijuana market nationwide. But how about the USA? Many pot stock investors do care a lot about the US – presumably that would lead into another YES but with certain limitations.
The US marijuana market generates big money on an annual basis. Last year over $8bn was spent on legal marijuana, which is even more than annual ice cream sales in same country.However, the cannabis business is facing a number of constraints, particularly when it comes to federal regulations on bank transactions with cannabis businesses. Luckily, due to a wide presence of marijuana businesses in numerous states federal governments won’t attempt to interfere in there, especially amid Trump’s latest commitment to supporting legislation. However, today’s medical cannabis market remains illegal in the USA compared to being legal in more than 20 countries around the globe. Thereby, the cannabis business model for the USA appears to be feasible on paper, but pot stock investors need to be aware of pitfalls that may come up along the way.
The Bottom Line
Summing up, we must say that cannabis market is expected to soar once again after Canada officially uplifts embargo on recreational marijuana on the 17th. Further to this – the country has become number #1 among developed nations that has announced the sale of recreational marijuana for adults. With that being said, the whole marijuana industry may rise up to the $20 billion mark by 2020 which is a %300 growth compared to last year sales turnover. This one of a few industries that will explode in the next 4-5 years.