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The cannabis industry in the United States, despite its
legal limbo, is thriving. Longtime taboos, stigmas, and
stereotypes regarding marijuana have mellowed out lately
among the general public, lawmakers, and investors,
leading to a rush of legitimate businesses in virtually ev-
ery mainstream sector, from agriculture to zoology. And
as cannabis pundits predict that full federal legalization is
likely to occur within the next several years, the multifac-
eted industry is poised to continue its rapid growth.
Legal marijuana generated $10.4 billion in U.S. sales
last year in the 33 states, and the District of Columbia,
where medicinal use is allowed and the 10 states, plus
Washington, D.C., and Guam, that permit recreational
adult use, according to New Frontier Data. That figure is
estimated to reach $12.9 billion this year.
In its 2018 Factbook, Denver-based Marijuana Busi-
ness Daily put some perspective on an industry that it
predicts could legally reach $24.4 billion in U.S. sales
by 2022. In 2017, for example, sales of medical and
adult-use cannabis were nearly nine times higher than
sales of Oreo cookies and almost on par with Americans’
collective spending on Netflix subscriptions. With the
addition of California’s recreational market sales in 2018,
cannabis sales could easily eclipse McDonald’s annual
U.S. revenue, according to the Factbook.
Those tantalizing numbers are attracting major capital
infusions. Between the U.S. and Canada, which legalized
cannabis nationwide in 2018,
investors rolled $10 billion
into the cannabis economy
last year—twice what was
invested over the previous
three years combined. That
figure is expected to reach
$16 billion this year. Widening interest has no doubt
been piqued by sizable investments in cannabis startups
from prominent consumer product companies, including
Constellation Brands, Altria, Molson Coors, and Novartis,
and endorsement deals with celebrities. Wall Street is
tiptoeing onto the scene, too: Nasdaq welcomed three
IPOs onto its exchange last year: Canada-based Cronos
Group and Tilray, and U.S.-based Greenlane.
Nonetheless, a degree of reluctance is likely making
some potential participants shy away from exploring
business and financial opportunities, put off by the fact
that marijuana remains a federally banned Schedule ISPONSORED CONTENT
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Cannabis Industry
Deepens Its Roots
The legal marijuana industry in the U.S. is
growing rapidly, driven by consumer interest
and big investments from the private sector.
Growers are experienc-
ing a surge in demand
for cannabis from states
where its use is legal.