Tobacco will be the next industry to switch to cannabis

898 0

As Big Tobacco continues to lose its market share, it could become Big Cannabis

It’s no secret that tobacco-based cigarette use is on the decline in the US, as well as the rest of the world. The push to dissolve the entire market has been strong and those efforts have been somewhat successful. Since no business ever wants to be left behind, the world’s tobacco companies will more than likely – if they haven’t already – begin considering a switch to cannabis-based products in order to stay alive.

Big Tobacco already has very deep pockets and worldwide connections that would allow it to easily make the transition. It also has the marketing and brand power to provide an assist. While current regulations may be a hurdle today, tobacco companies certainly know how to maneuver through the political system to further their agendas.

Tobacco cigarettes still have some life left, but for how long is anyone’s guess. Even low-risk tobacco products are now coming under fire and the pressure to reduce their availability could continue to increase. On the other hand, the cannabis-related market is rising exponentially, driven, in part, by continued research that shows more and more the health benefits of the wonder plant.

Lately, stocks in almost all Big Tobacco companies – Altria, British American, Imperial, Turning Point and others – have been declining in parallel to a retreating market. Since marijuana is expected to be $30 billion market within the next six years, it would make sense for tobacco companies to start expanding their portfolios.

Tobacco companies can also provide a huge step for marijuana investors and turn them into millionaires. However, as with any investment, caution is always warranted and shouldn’t be seen as a get-rich scheme.