Marijuana businesses have become a major competitor to beer and will continue to disrupt that industry for the foreseeable future.
An investment firm industry analyst, who specializes in beverages, tobacco, and adult-use marijuana, recently shared data with CNBC, and she established a clear correlation between increased use of marijuana and decreased use of alcohol. She said in states where recreational marijuana use is legal, binge drinking rates have dropped “significantly.” She identified both as “social lubricants.” In other words, both are used by adults in social situations to help unwind, de-stress, have a good time, and feel relaxed with new people or in new environments.
In terms of stocks, the numbers are clear, as well. Her firm primarily valuates the Canadian market, with Canada on track to legalize adult-use marijuana nationwide by the end of summer. Several Canadian medical marijuana companies are seeing shares grow by up to 240 percent in the past year in anticipation. She said estimates from her firm put the U.S. cannabis industry as being worth $75 billion by 2030, assuming marijuana is removed as a Schedule I narcotic from the Controlled Substances Act, 21 U.S.C. Section 812. Continue reading