Despite the uncertainty generated by the Trump administration’s statements on the matter, the massive profits and job creation created by the cannabis industry make it looks as if legal cannabis is here to stay.
In 2016, legal marijuana sales in the United States totaled nearly $7 billion – an unprecedented 30% growth. “To put this in perspective,” a Forbes magazine article states, “this industry growth is larger and faster than even the dot-com era. During that time, GDP grew at a blistering pace of 22%. Thirty percent is an astounding number especially when you consider that the industry is in early stages.”
National sales are projected to reach $26 billion by 2025, and with Canada set to legalize recreational use of cannabis in 2018, North American sales figures are set to skyrocket.
With that much revenue being generated, you can be sure that investors are chomping at the bit to get in on an industry that is still illegal under federal law.
Indicative of the eagerness with which investors are approaching cannabis are the Bloomberg Intelligence Global Cannabis Competitive Peers Index, “an equally weighted index of 54 stocks with significant exposure to cannabis-related operations,” and the Viridian Cannabis Stock Index, which tracks the performance of approximately 50 publicly traded cannabis companies.
The Viridian Index indicated that cannabis stock grew at a staggering pace of over 236 percent in 2016 – compare that to the growth rate of 14 percent for traditional stocks.
In a June 5, 2017 article, The Motley Fool asked, “Which Marijuana Stock Could Be First to $1 Billion in Annual Sales?” and its projection was that GW Pharmaceuticals, the creator of Epidiolex, would take that prize. Overall, the most highly valued cannabis stocks are those related to bio-pharma companies, indicating that if and when the U.S. legalizes nationally, they’ll be the major players in the game.
Perhaps the most exciting news on the cannabis industry front concerns job creation. In Colorado alone, over 18,000 jobs have been created since 2015. A report from Salon says, “before the first gram of marijuana is ever sold in a legal state, money is being made hand over fist by those members of the business community with, perhaps, little to no interest in legal weed. Contractors specializing in everything from construction to heating & air are being called upon in the beginning stages to assemble the various components of the cannabis industry. This situation alone is responsible for putting thousands of people to work — contributing new money to local economies.”
The Green Solution® is proud to be part of the fastest growing industry in the nation, and we’re confident that the future holds great promise for the cannabis industry.