The cannabis industry is gradually growing due to laws to promote its growth and sale in nations like Canada, Mexico, and the USA. Marijuana is currently legal in several US states, and more states are promising to legalize marijuana by the end of the year. There is a significant reason for every country to legalize marijuana, with the main reason being that legalization has a positive impact on the general economy.
In the US alone, the cannabis market of California has positively affected the economy. The cannabis industry in California is worth billions which is significantly higher than the most significant agricultural fairs in the state
According to recent investigations, the cannabis market of California is the biggest in the world, and this has given the opportunity for more innovative entrepreneurs to start a business in the state. When the cannabis was established in California, they were only allowed to sell medical marijuana, which later resulted in low sales.
But when recreational cannabis was made legal in the state of California, the income from the cannabis market doubled significantly over a relatively short period and is forecasted to triple within the next two years. It is projected that the cannabis market of California will be worth about $6.5 billion by the end of the year 2020.
In the state of Colorado, most revenues from marijuana originate from the sale of recreational marijuana which made the cannabis industry in Colorado to grow significantly between the year 2014 to 2015. Furthermore, the legalization of marijuana also reduced the activity of the black marijuana market.
Thus, it’s no surprise that the Colorado cannabis industry has surpassed the growth of important sectors such as the construction of sports complexes and performing arts venues, and this happens during the period of legalization.
The nation of Israel is currently the leading nation in the world regarding marijuana research. There about an excess of 100 research studies which are now being conducted in Israel to determine the impacts and safety of cannabis use for various medicinal conditions. Research on cannabis in Israel has attracted exponential foreign and US investors who have invested millions of dollars in marijuana research. The highest amount of marijuana investment goes into start-ups, delivery services, and patents, and it’s expected that investment in marijuana will increase by 2020.
Nevertheless, with the legalization of medical marijuana in 28 states and legalization of recreational marijuana in 8 additional states including Washington DC, the USA is slowly gaining momentum in the marijuana industry. The growing cannabis industry has given rise to many economic benefits in the form of jobs, making the cannabis industry one of the highest employed sectors, employing thousands of people and more.
Marijuana legalization worldwide could create more job opportunities since the marijuana plant can lead to the creation of different industries such as delivery services, cultivation, edibles sector, accessories sector and more.
Apart from the tax returns that are received from producing and selling marijuana, cannabis-derived items are also another good source of income. The state of Colorado is making enough profits from the collection of excise and sales tax for marijuana.
The marijuana industry also leads to the creation of other beneficial sectors. For instance, the legalization of marijuana has resulted in increased demand for services including web designers, writers, accountants, security personnel, electricians and cashiers.
The creation of new marijuana retail outlets will create spaces for new tenants in deserted warehouses, therefore, boosting the commercial real estate sector, and the building companies will profit from the building new retail outlets, dispensaries and grow warehouses.
On October 17th, the Canadian government legalized the adult use of marijuana. This decision was taken after Canadians spent billions of dollars on marijuana in 2016. Canadian marijuana companies such as Aphria is set to increase its operations to about 1 million feet of growing space to produce 20,000 pounds of marijuana per year.
The expansion of Aphria’s growing space is to meet up with the demand that will come from the legalization of marijuana for adult use. Currently, dispensaries in Canada are witnessing increased demand for marijuana buds, mainly because it’s used in the production cannabis oil.