The domestic cannabis market in the U.S. has continued to boom over the course of the past five to ten years, but the issues of legislation continue to plague growth in the sector. Many have stated that the U.S. may be moving toward some new policy that would allow states to legally sell cannabis as opposed to the iffy legislation that exists currently. This would likely have a large effect on the whole of the cannabis market, but only time will tell.
Currently, in the U.S., there are nine states in addition to the District of Columbia that have legalized the use of recreational cannabis. Other states have been working do the same, but it is increasingly becoming more difficult as the government has yet to move in the right direction. Interestingly, polls have been showing a massive amount of support for the cannabis market, and a massive amount of interest for states to be able to sell marijuana legally. The number of those in favor has jumped drastically over the past several years, mostly due in part to the changing industry.
As soon as the end of July, many key players in the market are scheduled to meet and come up with a new range of propositions that would effectively allow the market to move toward its full potential in the near future. According to one study, 61% of Americans are in favor of having legal cannabis in the U.S., while many states individually are currently working on doing so. According to the same survey “in 2017, about 61% Americans supported legalization of marijuana use, for both medical and recreational usage. Key contributors to last year’s vote were millennials (70%), gen xers (66%) and baby boomers (56%). The legalization was also favored by 43% of Republicans, 69% of Democrats and 65% of independents voted in favor of legalization.” This type of unanimous agreement across social stature and political parties is unprecedented in any other industry other than cannabis and continues to illustrate the need for reform in the market.
One of the quickest changing aspects of the market that could lead to more growth is the use of acquisitions and partnerships. Many companies have joined in billion-dollar deals that have cemented companies that are larger than anyone ever thought possible. One example of this comes from the Toronto-based company, Emblem Corp. Emblem announces that they would be investing several million dollars into the company Natura Naturals inc. This will likely help them to up their production to help meet the demands of the growing market. The president and CEO of the company, Nick Dean, stated that this new partnership will help the two companies to “an immediate increase in product volume.” This will help them to boost their participation in both the medicinal and recreational fields of the cannabis market. Many companies have chosen to take similar steps to growth, but altogether the method of partnership and acquisitions has been one of the key factors to growth in the space.
The cannabis market as a whole is still very much in its infant stages which means that there is a lot of room to grow as we move toward the future. The hopes are high that new legislation in the market can continue to contribute to the industry reaching its full potential in the not too distant future. Only time will tell how these partnerships and the companies like those mentioned above, will continue to perform amidst stringent regulations and a positive public sentiment on the substance.
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