Business Money News

9 things investors should know about the cannabis industry in 2021

Unlike dozens of other industries across the globe, cannabis experienced significant growth as a result of the COVID-19 pandemic.

In fact, with consumption for both medical and recreational products on the rise, 2020 was a record-breaking year for the industry. After years of investor uncertainty, analysts are predicting a continued bull market in 2021, with several new and exciting developments on the horizon.

Here are nine things cannabis investors need to know.

1. Cannabis Stocks on the Rise

While asset prices took a dip during the initial stage of the COVID-19 outbreak in March, the cannabis sector recovered swiftly after reporting impressive numbers.

Even though cannabis investors have experienced some ups and downs in the last several years, 2021 looks more hopeful.

2. COVID-19 and Cannabis

Cannabis has become an attractive option for people spending more time at home, both as a means of entertainment, and to reduce stress and anxiety associated with the pandemic.

As a result, cannabis sales are soaring. In Canada, monthly sales reached an all-time high of $270 million (CAD) in October 2020, a dramatic increase from $180 million just six months earlier.

3. Cannabis Black Market No More?

For millions of U.S. citizens who live in states where the sale of cannabis is still restricted, the illicit market continues to be their only option.

But with loosening restrictions and legal cannabis becoming more widely available, legal sales are predicted to reach $50 billion by 2026 while illegal sales will plummet to less than $1 billion by the same year.

YearU.S. Legal Cannabis SalesU.S. Illegal Cannabis Sales
2016$6 billion$25 billion
2026$50 billion<$1 billion

4. Political Change Driving Market Growth

Almost 70% of Americans now support the full legalization of cannabis—the highest figure ever recorded.

States where cannabis is legal are now paving the way for cannabis sales, with California expected to pull in over $6 billion by 2021 alone. If federal legalization comes to fruition over the next several years, the already booming U.S. market could see further growth.

To Read The Rest Of This Article By Katie Jones on Visual Capitalist

Published: February 08, 2021

SHARE
RELATED POSTS
Harborside Inc. completes $5 million strategic investment in Loudpack
Is Cannabis A Modern Gold Rush For California Real Estate?
The Marijuana Industry is Ripe for Enforcement Under Prop. 65

Leave Your Reply

*