Cannabis Businesses Could be the Next Great American Industry

Los Angeles marijuana business attorneys have helped cannabis businesses throughout California to build thriving, profitable companies in the decades since the state began permitting cannabis sales. Now, the cannabis industry is growing rapidly throughout the entirety of the United States as jurisdictions throughout the country finally relax laws on medicinal and recreational marijuana. 

The industry is poised for rapid growth, and high net worth investors are taking notice in the emerging cannabis marketplace. Changes in public attitude towards legalization of marijuana may eventually result in the federal government reclassifying cannabis, and are likely to continue to cause an ever-increasing number of states to allow cannabis businesses to operate locally. All of this means it is a great time to invest in companies within the marijuana industry.

The Marijuana Industry is Growing Rapidly

According to Yahoo Finance, more than $100 million has been invested in cannabis-related startups by high net-worth investors, just since 2010 alone. Investors who started early, when far fewer states had legalized marijuana, were pioneers in this emerging industry but investing in cannabis businesses is becoming more mainstream as projections are made for growth and potential profits within the marijuana marketplace.

In fact, close to three in 10 Americans responding to a Yahoo News / Marist poll indicated they would be interested in investing in marijuana businesses if cannabis was legal. These includes non-users, 21 percent of whom said they would be interested in investing in a marijuana business. More than half of all Americans also indicated they would approve if their retirement fund or bank made investments in the marijuana industry.

The expected profits from marijuana sales explain why investors are eager and willing to put their money into marijuana companies.

Revenues from the marijuana industry are expected to grow to more than $21 billion by 2021, regardless of any federal action on marijuana operations during the next four years, which is a significant increase from the $6.7 billion earned by marijuana businesses in 2016. The market for recreational cannabis alone is likely to substantially expand as an increasing number of states relax the rules on recreational marijuana use. By 2026, the market for recreational marijuana use in the U.S. alone could bring in more than $50 billion in annual revenues, on top of what the market for medical marijuana is already earning.

This does not mean a federal crackdown on marijuana businesses won’t impact any owners of cannabis businesses,. However, actions taken by the Trump administration to more vigorously pursue investigations or prosecution of particular companies within the cannabis industry will likely not stop the 29 states with various marijuana legalization laws from continuing to give out licenses to marijuana businesses.

Other states will likely also jump on the bandwagon to legalize marijuana as they observe positive effects including improved health as cannabis products treat serious conditions, as well as substantial tax revenues being paid in jurisdictions where marijuana use is allowed. This all means more potential for growth and profit within the marijuana industry, which has been described by some investors as the next great American industry.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Power of the pot business, April 17, 2017, By Alexis Christoforous, Yahoo Business

More Blog Entries:
Report: Colorado Marijuana Laws May Not be Safe, Feb. 5, 2017, L.A. Marijuana Lawyer Blog