The growing, processing, and sales of cannabis or cannabis-based products is undoubtedly a rapidly growing industry which is making its mark everyday and at the same time going to stay here for some time. Expectedly, as reports say, the global cannabis market is expected to hit $40 billion by 2021, and in the US alone to a staggering $75 billion projected for the U.S. alone by 2030.
Gear up, as you need to focus with all your dedication, research, and a well crafted CBD hemp farm business plan.
2020 Cannabis Industry Overview
Let’s dive into the specifics of the particular industry and take a step back to focus on the bigger picture. What caused the industry to boom? Who all are making it big? And how did they make it big? How does the market look like, and how you can make your own space into it?
Recent Industry Growth – How did it happen?
Experts and researchers have termed the current cannabis boom as the famous “green rush” (pulling reference from the infamous Gold Rush of the 1840s). Though the analogy is on a lighter note, the industry has truly skyrocketed over the past few years, going to have its own impact in the years to come, and there is no possible sign of stopping any time soon.
The Downfall of the Tobacco Industry
Blame it on a myriad of complex socio-economic changes and political decisions that are somewhat responsible for the green rush. One such development is the steady decline of the global tobacco industry. When the investors and key players found a sudden decline in the number of smokers worldwide with years passing by, they went ahead for a lookout for better and more lucrative opportunities.
Hence, the cannabis industry came into spotlight delicately replacing the tobacco industry as a major industry leader. With the increase in cannabis use and the demand going up by the day, the young industry is treated like an attractive one for the investors who have found it promising with lucrative return possibilities.
The Stigma Removed, Almost
Since the social taboo linked to cannabis gradually got shunned, the use of cannabis and the industry as a whole is another defining cultural movement that has certainly helped its rise on the economic stage.
Additionally, many reputable academic institutions have been researching and publishing studies that indicate the beneficial properties of the plant. Thanks to the positive portrayal of cannabis in mass media and mainstream culture, the industry has eventually turned into a household name.
Decriminalization and Legalization
Of course, it is no wonder that many governments want to capitalize on this emerging market by decriminalizing or legalizing marijuana altogether. The failure of the global war on drugs has helped to reach this move, though it has hurt and divided communities and fostered inequality.
Governments do hope and foresee that decriminalization can boost tax revenue, revitalize the economy, and redirect valuable crime-prevention resources where they are most needed. Not yet there, sadly, the U.S. is still lagging behind many other places. As of January 2020, marijuana is fully legal only in D.C. and the following states:
- Alaska
- California
- Colorado
- Maine
- Massachusetts
- Michigan
- Nevada
- Oregon
- Vermont
- Washington
On the other hand, marijuana is illegal in:
- Alabama
- Idaho
- Kansas
- Louisiana
- South Carolina
- South Dakota
- Tennessee
- Wisconsin
- Wyoming
Apart from these, all other states have introduced different levels of decriminalization and many allow medicinal marijuana.
Before you head off for your business setup, find out in details about the specific cannabis laws in your state. It is advisable to check out lists where it is mentioned whether the herb is decriminalized, legal for medical purposes, legal for recreational purposes, or whether it is completely illegal, as a precautionary measures in advance.
Future Projections for Cannabis Industry
The US market seems promising with a projected $75 billion by 2030. Though it is difficult to project the global growth in the longer run as it is still unclear which regions are about to decriminalize or legalize marijuana in the next decade, you may put high hopes with the regions already free for cannabis industry legally.
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