The cannabis industry has created a buzz on Wall Street over the years. This is attributed due to the increased potential of legal marijuana.
Arcview Market Research and BDS Analytics released a report on the state of legal marijuana market, which shows that between the year 2014 and 2018, global sales of legal weed in licensed stores tripled. After investing in the weed industry Wall Street is predicting that on the lower side, annual sales will be $50 billion or $200 billion on the higher side in the next ten years. If their estimate is correct, the marijuana sector will 2 or 2.5 times larger than the soda beverage industry. With this kind of growth, it would be foolish for the investors and Wall Street not to take advantage of the opportunity.
When purchasing cannabis stocks, you have to consider several variables such as supply deals and partnerships as well as the geographical focus.
The report further suggests that recreational marijuana sales all over the world in the year 2024 will be almost double that of medical marijuana. Countries such as Mexico will legalize personal use of marijuana, and this is bound to surpass the medical marijuana sales because patients will see no reason to pay doctors’ consultation fees to access medical cannabis when they can go to the dispensary and buy it.
Although most people are investing in recreational marijuana, it would be wise if people paid more attention to medical marijuana. Discussed below are the five reasons why you should focus more on medical marijuana
- Patients Tend to Buy and Use Medical Cannabis Often
Pot stocks are popular among medical marijuana patients. In the last quarter of 2018, surveys carried out in Canada showed that medical cannabis patients buy and use cannabis more often, while people do not purchase or use recreational marijuana as often.
- Medical Marijuana Has Higher Margins
Compared to recreational users, medical marijuana consumers tend to consume products with higher margins for the sellers of cannabis products. This is because patients are willing to purchase medical marijuana products such as beverages, edibles, oils, concentrates or vapes with a higher profit margin, while recreational marijuana is in the form of dried weed that has low margins and consumers fear to overdose.
- Probability of a Broader Global Market
Over the next ten years, medical marijuana may be explode on the global market; therefore, investors should start investing in the industry. There will be three recreational marijuana markets worldwide if Mexico legalizes marijuana for personal use in October. In the coming years, the future of the pot industry is in medical cannabis which is being accepted in more jurisdictions worldwide.
- Appeals to the Younger Generation
Medical marijuana connects with young adults in a quick manner. The ability to buy marijuana derivatives by the younger generation has resulted in dried weed avoidance. The younger generation consumes large amounts of marijuana; therefore, they are expected to be the driving force of the pot industry.
- Medical Marijuana Gives Traction to CBD
Through the medical marijuana industry, CBD (cannabidiol), which is a nonpsychoactive cannabinoid that has many medical benefits, gains a paramount degree of exposure. This explosure opens new revenue streams for medical marijuana companies.
Experts think that these five reasons could explain why many marijuana companies, such as Green Hygienics Holdings Inc. (OTCQB: GRYN) and HTC Extraction Systems (TSX.V: HTC) have an eye on the medical marinuana segment.
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
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