In 2016 marijuana profitability soared – up more than 30% from the previous year. The North American market declared over $6.5 billion in revenue, making it the fastest growing market and poised to surpass even the global smartphones dominance.
Growers are noticing strong trends driving this industry, with no signs of slowing. In fact, the burgeoning market has many trying to keep pace with supply and demand of both medical and recreational cannabis products.
So, what’s driving this upsurge of opportunity?
Localized Market Expansion
Medical and recreational marijuana usage is gaining acceptance across the U.S. More states are voting on, and passing laws permitting regulated use of cannabis-based product. Colorado, a pioneer in the legalization, recently passed the $1 billion mark from annual dispensary sales. And, Los Angeles is closing in on their profitability. LA’s medical marijuana market alone is nearing the billion-dollar mark, and an anticipated ordinance is expected to clear the path for LA’s recreational market to surpass Colorado. In Maine, significant production and distribution growth has gained traction from new consumer bases located both in and out of state. As the localized markets continue to expand, and adaptation becomes more widely accepted, the cannabis industry is expected to swell.
Let’s switch gears for a minute and consider the craft brewing industry. Thousands of homegrown brands have emerged each with their own flavor, identity, and following. And, so shall pot.
As legalization becomes a reality, a cannabis war (not unlike the cola wars) is very possible. There will be the major players of course, but let’s not discount the rise of the craft bud grower. Their emergence will likely accompany a desire to differentiate themselves through custom blends, as well as marketing – not unlike craft beers. The most eye-catching packaging, the story behind the seed, the vision for an otherwise novice grower hoping to make a name for themselves. All plausible scenarios to drive cult followings and drive the supply and demand of cannabis.
It’s not just what you consume, it’s how you consume it. The marijuana industry has taken off, and so have accompanying products. From pipes to pastries, consumption can come in many forms. Dispensaries are retail outlets for cannabis products, but also for lifestyle brands that support the market. Just as small business growers emerge, companies touting accessories are typically the trend and feed off a successful industry. Supplemental revenue streams from the legalization of cannabis create a stronghold that bolsters profitability solidifying marijuana as a significant form of commerce.
America’s marijuana industry is predicted to surpass a $24 billion valuation that by 2025. Growers are under pressure to produce the quality and quantity of product that will meet industry expectations. Cannabis growers, like organic agriculturalists, are looking for innovative, all-natural ways to fortify their plants and harvest a robust crop.
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