Industry Spotlight: Legal Marijuana Industry
A report by Huffington Post states that if the trend continues, the Legal Marijuana industry is posed to be even larger than the organic food industry. A total of five states have currently legalized cannabis in the USA, including the capital D.C. that passed the bill just as this article was being written and more states are leaning toward legalization across America and thus making it the fastest growing industry in North America.
According to the market research group ArcView, the market for legal cannabis grew to a whopping 74% in 2014 – from $1.5 bn in 2013 to $2.7bn in 2014.
“In the last year, the rise of the cannabis industry went from an interesting cocktail conversation to being taken seriously as the fastest growing industry in America” Troy Dayton, CEO of The ArcView Group.
The report also projects 32% of growth in the industry this year. Alaska is the latest state to legalize cannabis meanwhile DC has been trying to push for a bill to legalize cannabis and there is currently a congressional bill that would end the prohibition of Cannabis nationwide.
Neutra Corp. (NTRR) is a developer of is a healthy lifestyle company that specializes in the development and marketing of natural wellness solutions, including cannabis-related products. Should the bill pass, the CEO Chris Brown believes that the federal bill would almost instantaneously skyrocket the industry. The passing of this bill would also boost tax income while lowering crime rates across the US.
It should be noted that not all of US may have the optimal conditions for the growth of the plant and therefore in states with less optimal growth conditions and higher demand, cannabis would have to be shipped in. However, this isn’t possible and transport of marijuana is a federal crime, which with the help of the federal bill would be easier going forward. This would create another market for transportation and areas of growth.
Marijuana Tax Revenue Act would provide a tax income on regulated marijuana sale and incentivizing the congress to vote for legalization. The projected report also states that by 2019, all the state-legal marijuana markets have potentials up to $11bn annually.
Oregon and Alaska are expected are to add combined $275 million revenue from the sale of retail cannabis. California still holds the largest market in USA at $1.3 billion even though cannabis remains illegal for recreational purpose; it is expected to change however in 2016 ballots.
The creation of a federally regulated and taxed market of the product in all states across US is projected at a total market value of $36.8 billion which is $3b billion greater than that of the organic food industry.
There are movements in Canada as well for the legalization of the drug, So far there are 16 companies that hold the MMPR license for cultivation and reselling of the drug in Canada. Should Canada go forward with legalization – there is a whole industry that is waiting to grow and the benefits are immense with many other trickle down effects that help transportation grow and also lower crime rates.
This report is also in tune with what we mentioned last month in our article “New Job Positions We’ve Not Seen Before” – One of the positions was a Cannabis Production Manager, in fact we at Goldbeck Recruiting currently have an job opening for the same at one of our clients.
Huffington Post: Legal Marijuana Is The Fastest-Growing Industry In The U.S.: Report