8/11/2022 0 Comments Cannabis Sales Are Growing Cannabis sales are steadily growing. It's a multi-billion dollar industry, supported by a robust supply chain, including retailers, biotechnology firms, and support systems. As the industry continues to grow, this infrastructure will become more critical, as consumer spending is expected to surpass $20 billion by 2020 and hit $37 billion by 2023. Despite the slow start, cannabis revenue has already overtaken alcohol and tobacco, and many of the major companies have begun to enter the industry. While males still dominate the new market in Colorado, sales to females have surpassed the first day of sales in that state. A recent report by Eaze, a cannabis industry research company, revealed that female cannabis customers will make up the largest group of cannabis consumers. The U.S. cannabis industry is predicted to grow to $24 billion by 2025. In a separate report, the Marijuana Policy Project estimates that sales to women will reach $11.2 billion by 2025. The State of Cannabis Industry report found that in 2021, 22.1% of 18 to 25 year-olds plan to use marijuana, and half of the world's population will use it by the time they're 30. The United Nations reports that 192 million people worldwide used cannabis last year. According to the report, edibles were the most popular cannabis purchase for every generation except Gen Z, while flower ranked number three among all generations. This trend may continue as young people reach the legal age of 21. Despite the challenges and uncertainties, it seems that the market is finally starting to bounce back. NSLC, which has 37 retail locations, has added 13 new cannabis stores and cut prices to affect the illicit market. The NSLC's third quarter earnings report indicates that cannabis sales in Nova Scotia have grown by 20 per cent and accounted for 26 per cent of its total revenue. However, profits for the company remain sluggish due to increased costs for freight and payroll. Despite the regulatory and cannabis deductions, the market is poised to grow exponentially. By 2026, the combined legal and recreational cannabis market is projected to reach nearly $33 billion in sales. While federal legalization has not yet occurred, over 30 states have legalized cannabis in some form. As a result, legalization could lead to significant upside for the industry. Mississippi, Oklahoma, and Delaware are expected to legalize the drug in the next few years. Cannabis business financing is still in its infancy. Most traditional financial institutions will not work with the cannabis industry due to federal restrictions. However, private investors are entering the market as a viable alternative. Angel investors, venture capitalists, and private family offices are common sources of financing for the cannabis industry. Private family offices look favorably on the industry. In addition, cannabis businesses face application fees that can run into the tens of thousands of dollars. Moreover, they must meet certain capitalization requirements to gain approval. Despite the potential negative effects of legalization, wine and spirits sales have continued to grow. In fact, wine and cannabis could coexist harmoniously, as long as they are legal. The only downside is that the Trump administration may decide to enforce federal drug laws in states that have legalized cannabis. But these restrictions are only temporary. If legalization goes ahead, cannabis and alcohol sales should increase. The federal government will still need to enforce stricter laws and regulate sales. For more info about the subject above, click: https://www.encyclopedia.com/plants-and-animals/plants/plants/cannabis.
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