Zero To $38 Billion In Four Years: Hyper-Growth Company Reveals The Future Of Marijuana
Marijuana Stocks, Finance, & InvestingUncategorized March 30, 2019 MJ Shareholders
Marijuana stocks are the ultimate growth story.
The entire bull market has hinged on potential growth.
The industry, by and large, has delivered on that potential.
Last year was another record-setting year with $10.4 billion in legal marijuana sales.
Now all those “crazy” projections for the industry hit $50 billion…$100 billion…or more a really matter of time and ongoing legalization efforts.
The industry still has years of growth ahead of it too.
But one tiny corner of the marijuana industry likely has the most growth potential of all.
The Rise Of Marijuana Vaping
Marijuana vaping is still a relatively small part of the overall marijuana industry.
Last year marijuana vaping makes up just 12.9% of all marijuana sales in the United States according to data compiled by ArcView Research.
If you know how fast all vaping (both nicotine and marijuana) is growing though, you know how big vaping will be in marijuana.
ArcView projects vaping to eventually account for $1 in every $4 in legal marijuana sales.
For investors though, the key is that vaping is just starting to take hold in the legal marijuana industry.
That is changing fast.
And in a few years the marijuana vaping segment will likely have some leading companies worth billions of dollars.
Just look at how the leading nicotine vape company went from zero to $38 billion in four short years.
The Next Big Thing In Marijuana
Investors looking for the next big thing in marijuana better be looking at the massive success of JUUL.
JUUL (pronounced like “jewel”) is the leading nicotine vape company in America.
You’ve likely seen their products at gas stations and convenience stores across the country.
JUUL’s quick success has been as stunning as it has been massive.
The company has exploded since Pax Labs – JUUL’s former parent company – introduced the JUUL electronic cigarette vaping device in 2015.
By 2016 JUUL sold 2.2 million of its vaping devices sold in and generated $200 million in total revenue.
In 2017 the company sold 16.2 million devices on its way to hitting $1 billion in revenue.
Last year in 2018 JUULs sales more than tripled to $3.4 billion.
JUUL is now ubiquitous with vaping. “JUULing” has become the equivalent term for nicotine vaping in much the same way “Googling” came to define Internet searching.
The latest major step for JUUL came from Altria (MO), the maker of Marlboro cigarettes and was formerly known as Philip Morris,
The tobacco giant invested $12.8 billion into JUUL for a 35% share of the company.
This deal values JUUL at more than $36 billion.
That’s a huge run for a company whose product was only introduced in four years.
More importantly, it shows the value of what a strong tailwind can do for a company like JUUL.
Smoking traditional cigarettes is dying.
In 1955 the 40% of all American adults smoked.
That was top of the market though.
The percentage of adult smokers has fallen steadily since then.
Smoking rates fell to 14% in 2017.
And it’s only going lower from there.
Meanwhile, vaping is growing faster than ever.
Vaping is the natural and — as demonstrated sudden rise of JUUL has clearly demonstrated — the obvious alternative to smoking.
Vaping is cleaner, better, and all around more enjoyable alternative to smoking
Vaping is one of the fastest growing trends in the world and it’s about to hit the legal marijuana industry in a big way.
The Window Of Opportunity Is Closing
The key for marijuana investors though is that marijuana vaping is still in the earliest stages of growth.
The Seed Investor’s research on the history of vaping marijuana shows a major turning point is here for marijuana vapes.
Last year the marijuana vaping segment passed the $1 billion mark for the first time ever.
Yet vaping still only accounted for 12.9% market share of the total U.S. legal marijuana market.
But that’s changing fast, and marijuana vapes are likely to follow in the path JUUL has already blazed in nicotine vaping.
All marijuana investors must be looking at vaping right now.
Vaping is the place to look for rapid growth ahead.
Frankly, an investment in JUUL is neither practical nor likely lucrative at this time.
JUUL is already the dominant player in the nicotine vape market, its fully funded after the massive investment from big tobacco’s deepest pockets, and the company is valued at $36 billion.
There’s just not much upside left in it.
However, investing in rising marijuana vape companies is not just practical, its likely to be lucrative as well.
MJ Shareholders
MJShareholders.com is the largest dedicated financial network and leading corporate communications firm serving the legal cannabis industry. Our network aims to connect public marijuana companies with these focused cannabis audiences across the US and Canada that are critical for growth: Short and long term cannabis investors Active funding sources Mainstream media Business leaders Cannabis consumers