SACRAMENTO, California, April 9, 2021
In 2020, the cannabis sales in America were through the roof, and it is estimated that revenues of almost $18 billion were realized.
This is a clear indication that Americans are turning to cannabis. Considering the numerous therapeutic benefits of cannabis plus its flexibility in consumption, this was expected.
Cannabis may not be federally legal, but most Americans feel that cannabis should be legalized. According to a Gallup poll, 68% of Americans support marijuana legalization.
As more people become aware of the therapeutic benefits of cannabis, the cannabis market will start generating astronomical figures.
Cannabis Industry One of the Main Job Creators
Since 2020, the economy has taken some major hit with the proliferation of COVID-19, and many people have lost their jobs.
But cannabis is one of the few industries that have been on the up and up. Cannabis dispensaries are popping up across the country and they are giving people jobs.
Cannabis is a flexible product i.e. it can be consumed in different ways, and we have seen an increase of different cannabis-infused products.
The emergence of successful cannabis companies has played an important role in absorbing unemployed people.
Main Challenges Affecting the Cannabis Industry
Even though the cannabis market is expanding at a breakneck speed, there are many challenges that players in this industry have to contend with.
Some of the challenges are within the control of the industry but other challenges are external. Overcoming these challenges is critical in promoting the cannabis market.
Low support from financial institutions: Financial institutions play a critical role in business success. But then most financial institutions have restrictive policies against marijuana companies.
These limiting policies are typically informed by the fact that marijuana is not federally legal, and so, the financial institutions are not willing to favor what is declared illegal under federal law.
Some financial institutions, specifically payment gateways like PayPal can deny you services, thus making it hard to send or receive payment.
Also, some banks have a policy against giving out loans to marijuana businesses, and this lack of capital can stifle company growth.
Extreme difficulty in getting licensed: The law demands that you get licensed before you open a cannabis dispensary, but then getting licensed has often proven to be an uphill task.
The process involves very many steps, and it almost feels like entrepreneurs are being discouraged from setting up cannabis dispensaries.
The government would greatly help marijuana businesses by eliminating the ambiguous processes and even lowering the associated fees.
Restrictive policies on how to use cannabis: Government policy restricts using cannabis as a medicine, and although this stems from the reality that the research on cannabis is limited, we cannot ignore the negative aspect.
Cannabis has been used for its medicinal value since the ancient era, and it’s totally okay for manufacturers to formulate cannabis medicines.
This would significantly increase the cannabis market and allow patients to access effective treatments against various conditions like diabetes, anxiety, depression, epilepsy, etc.
What is the Future of Cannabis?
For many years, cannabis was prohibited in the US, which was unfair considering that cannabis is a natural compound with numerous therapeutic benefits.
Some states have legalized cannabis, but there are many others that are yet to do that. Legalizing cannabis removes the taboo part and creates a perfect environment for the thriving of the cannabis market.
And once cannabis is federally legalized, and there’s support flowing from the different institutions, the cannabis industry is going to thrive.
In the next five years, we shouldn’t be shocked if the US cannabis market generates revenues in excess of $100 billion!