Cannabis sales are expected to reach $33.6 billion by 2025

Cannabis is now legal for recreational use in New York, Virginia, New Mexico and Connecticut

Following the legalization of cannabis in 2020 in US states such as Montana, Arizona, New Jersey, South Dakota, and Mississippi, several more states have recently voted to legalize the use of cannabis, including New York, Virginia, New Mexico, and Connecticut. This could drastically increase financial growth in the cannabis industry due to the massive increase in potential cannabis users. 8.4 million people live in New York, 8.5 million in Virginia and 3.5 million people in Connecticut. Cannabis sales are expected to top $33.6 billion worldwide by 2025, according to a recently published research article on Statista.

The factors that seem to be driving cannabis spending are the legalization of cannabis in more states, more market opportunities for investors, business owners and the growth of current cannabis companies, and the fallout from the pandemic.

Why we might see financial growth in the Cannabis companies, an increase in cannabis investors

There are many reasons cannabis sales are projected to top $33.6 billion by 2025. One of them could possibly be due to global adoption. With the global acceptance of the legalization of recreational cannabis, the financial growth of the cannabis industry will also increase. It’s still early days for cannabis investors to do well in the cannabis market. Most of the world has still not legalized the recreational use of cannabis. For example, only 18 out of 50 states in the US have legalized cannabis so far. The population of the US is 329 million and over time, as more states open up the legal use of cannabis, the market will open up to millions of potential cannabis users. This means the potential financial return on cannabis investments could be at its highest right now.

For investors, the priority right now might be researching the most successful and capable cannabis companies to invest in. What investors might be considering are cannabis companies that have a U.S. or global presence. Green Thumb Industries or Curaleaf, both of which are based in the U.S. and offer cannabis products in multiple states, could be two companies investors might want to consider. Tilray, a Canadian pharmaceutical and cannabis company incorporated in the United States, could also see investor growth due to its global operations in Australia, New Zealand, Germany, Portugal, and Latin America. Another company potentially looking to increase financial growth is Innovative Industrial Properties, an American real estate provider serving the regulated cannabis industry.

Having more investors means the opportunity for more corporate growth, which means a company can have more advertising, additional activities, new brands, new products, and the consequent potential for more cannabis sales.

The aftermath of the pandemic could support a surge in cannabis sales

Coupled with increasing legalization of recreational cannabis use in the US, the fallout from the pandemic could significantly contribute to an increase in cannabis use.

Many people may be suffering from social anxiety due to a lack of socialization due to the pandemic restrictions and may feel the need to self-medicate with cannabis products to help with anxiety or to build communication skills. Some people, feeling depressed or struggling with trauma from years of their lives ruined or wasted by the pandemic and mandate fallout, are turning to cannabis for relief from PTSD. As social gatherings are no longer restricted, people may be partying often, and more social gatherings could involve the use of cannabis. There will always be problems with physical and mental health, social gatherings and stress. Because of this, there will always be a future for the cannabis industry as the world opens up to the legalization of cannabis.

How do you think about the future of the cannabis industry? Only 18 out of 50 states in the US have legalized cannabis for recreational use. Are you excited about the potential legalization of cannabis in the remaining 32 states of the US? What do you think that would mean for the cannabis industry? Let us know in the comments and follow us @cannalifenet!