Investing in the marijuana industry has never looked more lucrative.
Earlier this year, Forbes astounded its audience by noting that 2016 marijuana sales in the US states where it’s legal outmatched the Dot-Com boom of the early 2000s.
They based this on a report by Arcview Market Research, which is the market leader in data research for legal marijuana market in the United States. According to Arcview, legal marijuana sales in North America grew to $6.7 billion in 2016.
As Forbes Magazine observed, by comparison the entire US GDP during the Dot-Com era grew at 22% versus the 30% growth we’ve seen in the marijuana market to achieve those kind of number sin 2016. And remember that at the time, the dot-com expansion was considered unparalleled in its scope and magnitude.
Arcview’s editor, Tom Adams wrote:
“The only consumer industry categories I’ve seen reach $5 billion in annual spending and then post anything like 25% compound annual growth in the next five years are cable television (19%) in the 1990’s and the broadband internet (29%) in the 2000’s.”
At the rate the marijuana industry is growing, we can reasonably project legal cannabis sales north of $20 billion by the year 2021 just five years from now.
Consumers clearly value marijuana for its psychoactive effects, the characteristic “high” caused by the THC in its leaves, rewarding consumers with relaxation, greater enjoyment of their company and surroundings, increased insight, and greater creativity.
Many consumers use marijuana the way American workers have used alcoholic beverages since this country was founded, as a way to unwind after a hard day’s work. The demand for legal marijuana is undoubtedly robust and hardly flinching at federal prohibition of cannabis and cannabis products.
Investing directly in marijuana dispensaries themselves or cannabis farms is just one way of investing in the marijuana industry. Another is to invest in the various auxiliary businesses the provide support and business infrastructure to this multi-billion dollar boom industry.