How Big is the Cannabis Industry?
Ah yes, the sweet leaf of the recreational world. And the medicinal world as well. Cannabis has come a long way from its taboo days in the early 80s and 90s. From a banned substance to a recreational underground drug, to a medical marvel, all the way to a booming industry and a hot commodity. Marijuana has become the people’s plant, and go to investment choice. But in order to harvest and reap the potentials of the sweet leaf, any would-be investor would require sweet life capital. In fact, money makes the world go round, but for the fortuitous marijuana investor, cannabis capital is essential to kick start any endeavor they might have.
And that just goes to show how big the cannabis market and industry have gotten. If you retrace the timeline of the plant from its inception, to first use, until today, it’s endearing almost. It went from being the drug of choice for foggy parties in basements, to being adopted in modern medicines applications, and herbal remedies. Cannabis companies have also gotten so big that they are traded on the world’s largest equity trading platforms like the New York exchange.
So just how big is the cannabis industry? That’s a good question. Frankly, how big is big enough? If we’re being honest, the cannabis industry is continuously growing year by year. With no sign of slowing down. And as already mentioned. The sweet leaf is not only reserved for recreational users. On the contrary, it’s being adopted and applied by industries across the board.
Financing and Funding
You know an industry has grown to extreme proportions when the financial sector takes a keen eye to it. In fact, opportunities for finance and funding in the cannabis industry are large and in abundance. More and more financial institutions are turning towards the marijuana industry as a potential for investment. The stock market is also bullish. Cannabis companies can now be listed and traded on stock exchanges, and earn the potential to raise money through debt.
However, in the United States, because marijuana remains illegal at the Federal level, receiving loans and funding from the government or banking institutions remains difficult. Still, this has not stopped the inception, and availability, of different kinds of loans. For instance, there are cannabis real estate loans that are backed by either commercial or residential real estate. There are also loans given out to the marijuana manufacturing industry in the form of cannabis equipment financing.
The industry is flush with eager cash ready to sink their teeth into the hottest project. Still, more can be done for the cannabis market in terms of financing and funding. However, it remains a good start, with a promising outlook for the future.
When most people think of the marijuana industry they think dispensaries and be done with that. However, there is so much more to the industry than just Mom and Pop (or Cheech and Chong) stores. There are other businesses and operations you have to consider.
The manufacturing industry for marijuana has a lot of layers to it. There is the actual growth of the cannabis plant. Then you have the packaging, branding, and labeling of the plant. There is marijuana testing and cultivation that you should also consider.
There are other forms to manufacturing besides actually dealing with the plant. You have products that are made from hemp which is a part of the marijuana umbrella. And so, cannabis manufacturing is a grand stage of cannabis related operations and activity. This ties back to our previous point about the need for cannabis equipment financing. Especially when you consider how large, and complex, some cannabis manufacturing projects are becoming. The lengths of the marijuana market no longer shocks anyone. And its potential future looks promising.
We’ve mentioned it before in this article, but it’s only right that we mention it again because that’s just how big the medical market for cannabis is. Especially when you consider how medical marijuana works and the health conditions it treats. From Alzheimer’s, to Epilepsy, Multiple Sclerosis, and even Cancer. Medical Marijuana has also paved its way into mental health, with the plant being used to treat depression, anxiety, and trauma as well. As of today, 33 states have legalized the use of marijuana for medical purposes. This number is only set to grow. With time, as more and more benefits of the use of marijuana as a medicine begin to surface, more and more states will be keen on legalizing the plan.
The investment behind medical marijuana is marveling. There are stocks in medical cannabis companies that you can invest in, there are also electronically traded funds or ETFs. Your best bet is to study the market and choose wisely. Look for diversion and authenticity when you’re looking to invest. With that being said, marijuana is more than just a recreational party drug that people use for fun. And that is a consensus that is growing amongst the public, and they are aware of it. Which is why the investment interest into cannabis equity, and even cannabis equipment financing, has also grown.
Every state that takes a step towards legalizing marijuana is quickly joining the list of being a Sweet Leaf Capital. Every state that legalizes cannabis realizes very quickly the many benefits of the plant. First thing states and their constituents will notice is the positive economic impact that any legalization effort will bear. More opportunities, job creation, trade, and innovation will occur as a result of legalizing marijuana.
The second impact that they will notice is the growth in investment, and capital inflows, as a result of heightened interest from foreign investors looking to jump at a new opportunity.
Third, and most important, people will also notice a higher quality of life as a result of legalizing an entire industry that was thriving underground. Less arrests, less violence, more regulation. These are just some of the perks that any society will reap once they legalize marijuana.