More states are going to legalize marijuana, which means more entrepreneurial growth
The US mid-term elections were recently concluded. With this, two new states joined the list of 19 jurisdictions where recreational cannabis is legal. Simply put, recreational marijuana is achieving legal reach in nearly half of the states in the country, indicating that the industry is having an incredible time. Needless to say, marijuana is attracting new investment from entrepreneurs ready to cash in for the long haul. A clear example was seen with the $185 million Sean “Diddy” Combs plans to pay to take over a collection of marijuana production and retail facilities.
Today, the US has become plagued with licensed retail stores (more than 10,500) selling all kinds of hemp, cannabidiol (CBD) and cannabis-related products in general. It has certainly been a huge leap considering that four years ago, there were just under 3,000 of these stores. Northstar Financial Consulting Group claims that many of these dispensaries are able to earn a profit margin of around 17%, demonstrating how viable it is to have a marijuana business.
While physical stores have proven to proliferate incredibly over the past few years, there are other entrepreneurs who predict a better future in the online market. Many companies have wanted to take advantage of technological advances to launch mobile apps and websites in the industry, trying to mirror what Uber Eats (cannabis home deliveries) or Airbnb (4/20 friendly stays) do on a daily basis.
While it’s true that cannabis reform at the federal level is not yet on the near horizon, the industry seems to be going through a process of reshaping its business as more states give the plant the go-ahead. For the first time in history, marijuana consumption exceeds that of tobacco, leading many analyst firms to forecast legal sales in the US to exceed $57 billion annually by the end of this decade.