Why is the Cannabis Industry Booming in the U.S. & Canada?

U.S. & Canada Flags (Blog)

When you see the word cannabis, what first comes to mind? Perhaps you picture an image of the cannabis plant itself growing in the ground with lots of little buds flowering about. Or, perhaps you think of the widely used term weed and a few images and/or cliché statements come to mind. Or, maybe you haven’t even heard of the term cannabis before, which is completely understandable. The term cannabis is rarely used in many societies and countries around the world for several reasons, but recently, there have been major developments within the cannabis industry. Yes, there is such an industry, and it’s booming in more locations than you could even imagine. You may be thinking how much revenue could this supposed plant really make? Let’s just say the figures are well into the billions.

According to a report released by Arcview Market Research, North American cannabis sales grew by a staggering 30 percent in the past 2016 year to a whopping $6.7 billion as the legal market expands into states across the U.S. and the provinces of Canada. If this figure doesn’t impress you, then maybe the projected cannabis sales will catch your attention. According to the same report conducted by Arcview Market Research, North American cannabis sales are projected to top $20.2 billion by 2021, which assumes a compound annual growth rate of 25 percent. This specific report includes Canada, an up-and-coming country that will move towards recreationally legalizing adult use of cannabis by the Summer of next year (2018).

By the 2016 year mark, half of America’s fifty states moved towards the legalization of medical marijuana in order to provide an alternative medicine to patients with various debilitating diseases, disorders, and other medical issues. Cannabis provides a surplus of medical benefits in the physical, mental, and spiritual state of users, and it also significantly reduces chronic pain, tension, and/or varying degrees of discomfort caused by a variety of different ailments and diseases; however, cannabis has the capability to remove all distress and pain completely.

As a result of various states running medical marijuana programs, their revenue significantly grew, which led to many states going the extra step of approving recreational marijuana programs including Washington, Oregon, California, Colorado, Alaska, Massachusetts, and Maine. In the report released by Arcview Market Research, it stated that cannabis sales jumped 62 percent through September of 2016 as compared to 2015 sales, and when this kind of information about cannabis sales emerged, many investors became very interested in this booming market, and decided to get involved as soon as possible.

Although many U.S. states have and continue to move towards some degree of legalization, cannabis is still classified as a Schedule I substance on a federal level, which means it is placed within the same category as heroin and supposedly containing no medical benefits. However, this classification is quite backwards due to the fact that multiple studies have been conducted across the world, which describe the endless amount of medical properties cannabis contains along with research and data as support.

On another note, one progressive North American country that should not be forgotten about is Canada. Although Canada’s cannabis market is at a smaller scale than the U.S., the intentions the Canadian government have regarding cannabis is something very unique and attention-grabbing. Canada’s medical marijuana program has been in place since 2003, and their government is already moving towards recreational legalization, which is planned to come into effect next summer (2018). What really sets Canada and the U.S. apart in regards to the status of marijuana, there will be little to no conflict at a government level in Canada as compared to the cannabis situation in the U.S.

In simplest terms, the cannabis industry is growing at a much larger and faster rate than most investors, companies, and overall users could have predicted. However, with President Trump in office, the American public, especially medical marijuana users are unaware of what, if any changes will occur within the cannabis industry. Fortunately, more and more states are moving towards some degree of legalization, but cannabis continues to remain listed as a Schedule I substance. Perhaps Canada’s future recreational cannabis program will be a model to other countries, but only time will tell.

For a more detailed and informative blog post focused on the medicinal properties cannabis contains as well as additional updates and information regarding the cannabis industry, stay tuned!


Sources

Borchardt, Debra. “Marijuana Sales Totaled $6.7 Billion In 2016.” Forbes. Forbes 

Magazine, 03 Jan. 2017. Web. 3 June 2017.

<https://www.forbes.com/sites/debraborchardt/2017/01/03/marijuana-sales-totaled-6-7-billion-in-2016/#587396a075e3&gt;.

Digital image. N.p., n.d. Web. 3 June 2017. <http://hightimes.com/news/the-new-cannabis-

        capital-of-the-u-s-is-canada/>.

“Reports.” Arcview Market Research. Arcview Market Research, 2017. Web. 2 June 2017.

            <https://www.arcviewmarketresearch.com/reports&gt;.

Wallace, Alicia. “Where Is Weed Legal? Map of U.S. Marijuana Laws by State.” The Cannabist. The Denver Post, 14 Oct. 20161. Web. 3 June 2017. <http://www.thecannabist.co/2016/10/14/legal-marijuana-laws-by-state-map-united-states/62772/&gt;.

A few cannabis studies/research

https://www.cancer.gov/about-cancer/treatment/cam/patient/cannabis-pdq

https://nccih.nih.gov/news/cannabidiol

https://www.drugabuse.gov/publications/drugfacts/marijuana-medicine

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