Prior to the pandemic, there was a great deal of talk about the regulated marijuana industry and how it would progress in the coming years. For a while, the uncertain and turbulent conditions of the world paused those conversations. The world is slowly emerging from the pandemic, though, let’s take a look at what this might mean for this industry:
Significant Growth Within the Sector
The industry is predicted to double over the next few years. In 2020, the sector was valued at $20 billion, but this number will be closer to $50 billion by 2026. All in all, there is bound to be considerable growth within a very short period of time. This is true for cannabis investments across the board.
The pandemic was actually partially responsible for this steep rise. As people were secluded inside their homes, many turned to marijuana to stave off the isolation. A rise in anxiety also had people seeking a calming solution. To add to this, easier cannabis delivery in Surrey and other areas meant that the average person had greater access than before.
Greater Adoption into the Medical Field
As an increasing amount of research is being done into the medicinal properties of marijuana, people are considering as an herbal therapy. This is becoming more common particularly due to the presence of cannabis oil. In case you are wondering what is cannabis oil?, it is a tincture or oil-based distillate of marijuana.
There are two varieties – one with THC and the other without. The version without THC is being adopted as a regular remedy as it can help to alleviate pain, anxiety, and sleep issues. The main benefit is that there is no high that is typically associated with marijuana. As use is increasing, the industry catering to such clientele is growing as well.
An Increasing Similarity to Traditional Industry Structure
Since its inception, this industry has formed and stuck to its own structure. For the most part, this was out of necessity. Legal and financial restrictions meant that most companies had to find a way to survive on their own merit. As the landscape changes, though, so does the structure.
The sector is slowly adopting the structure of mainstream industries. The most notable variation is that larger companies are taking over, with smaller subsidiaries underneath them. It is possible that in a short period of time that there may be a monopoly in this sector as well.
The Sector Will Continue to Face Barriers
There is a lot of support for the widespread adoption of marijuana. In general, the average person believes that cannabis should be decriminalized completely. In places like the US, though, these laws only exist on a state and not a federal level. While in many European countries and the UK it is legal to purchase cannabis seeds and grow cannabis but only if the grower has a government license.
Due to this, businesses associated with marijuana may continue to face pushback and barriers. That is not to say that the future will not be bright, but this industry will have to overcome various obstacles to be on par with traditional sectors.
These are all of the ways that the marijuana industry will function, grow, and change over the next few years. Thus, you should invest accordingly.
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