Policymakers Begin to Change Course on Cannabis Regulation
The support for cannabis legalization is growing every year as more countries continue to explore opportunities within the cannabis industry. In particular, the North American region is witnessing an immense swelling of support for legalization. For instance, last year Canada's federal government decided to legalize adult-use cannabis, making it the second nation to ever do so. Now, the U.S. and Mexico are also experiencing strong advocacy for the legalization of cannabis and although citizens from both nations are actively supporting legalization, the federal government has not implemented a program yet. However, the U.S. government has granted the power to legalize the plant to each individual state. As a result, more than half the U.S. has legalized cannabis for medical use, while just over a fifth has permitted its legal, recreational use. To better illustrate the shift, in the early 2000s, approximately 31% of Americans supported the legalization of marijuana. By 2018, six in every ten Americans, or more precisely, 62% said that marijuana should be legalized, according to Pew Research Center's survey. Specifically, most millennials are in favor of legalizing marijuana compared to other generations, as approximately 74% of millennials advocated for legalization, while 63% of Gen Xers and 54% of Baby Boomers supported the movement. Furthermore, politicians have also begun to change their stance on cannabis legalization because of the positive data flowing in from clinical trials. The survey also highlighted that 69% of Democrats said marijuana should be legal while the Republican party remains split with 45% in favor and 51% opposed. Nevertheless, support among Republicans has risen from just 39% in 2015. Meanwhile, Canada's legalization marked a historic milestone in the cannabis industry, creating a global powerhouse. Moreover, if the U.S. and Mexico were to also legalize cannabis, it could potentially influence other nations to explore the industry as well. And, as more countries decide to legalize cannabis for medical use and potentially recreational use, the overall industry is positioned to experience exponential growth. According to data compiled by Mordor Intelligence, the global cannabis industry was valued at USD 14.5 Billion in 2018. By 2024, the market is expected to reach USD 89.1 Billion while registering a CAGR of 37% during the forecast period from 2019 to 2024. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), KushCo Holdings, Inc. (OTC: KSHB), The Green Organic Dutchman Holdings Ltd. (OTC: TGODF) (TSX: TGOD), MariMed Inc. (OTC: MRMD)
Established Industries Look to the Cannabis Market for New Revenue Streams
As investments continue to fuel the cannabis market expansion, the social stigma revolving around the plant is beginning to subside. Similar to most emerging industries, institutions invest because they see potential value for future growth. And with the growing popularity of the cannabis marketplace, companies across various industries have become interested. Notably, healthcare companies are interested in ramping up cannabis research because the plant could become a viable treatment option for patients living with a variety of ailments. On the other hand, alcohol, tobacco, and healthcare companies have stepped into the cannabis industry because of declining sales in their primary units. For instance, large corporations such as Altria, owner of Marlboro, and Constellation Brands, producer of Corona and Modelo, have invested billions of dollars into the cannabis industry. Specifically, the two have invested in various cannabis companies to stimulate their overall business portfolios, as tobacco and alcohol consumption rates are declining. Now, the Arizona Beverage Company has even entered into the industry with its own venture to manufacture vape pens and infused gummies and drinks. Arizona Beverage is well known for its USD 1 drinks found throughout thousands of convenience stores and supermarkets internationally. And Arizona Tea's entry marks yet another large corporation diving into the cannabis marketplace. The investments are not only propelling the cannabis industry but are also allowing it to become a mainstream market among consumers. Now, as more large companies take their place within the cannabis market, the industry is positioned to become a disruptive global entity. And according to data compiled by Verified Market Research, the global marijuana market was valued at USD 42.20 Billion in 2016. Furthermore, by 2025, the market is expected to reach USD 466.81 Billion while registering a CAGR of 35.3% from 2018 to 2025. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), Aphria Inc. (NYSE: APHA) (TSX: APHA), HEXO Corp. (NYSE: HEXO) (TSX: HEXO).