The cannabis market is seeing incredible growth this year after a shaky head-start early on.
According to Fortune Business Insights, the global cannabis market is expected to hit $97.35 billion by the end of 2025… up from $10.6 billion in 2018. That’s a compound annual growth rate of over 32%.
Those are some impressive numbers. To me, they indicate that there’s a lot happening in the cannabis world – and that the industry is on track for disruption in a big way.
However, there are three main trends that I’ve got my eye on above all else… Because all three have the potential to deliver life-changing returns.
I’ve got a lot to cover, so let’s dive in:
Wide-open spaces for entrepreneurship
While medical marijuana has been legal in states like California and Oregon since the late 1990s, Colorado and Washington became the first two states to legalize recreational cannabis in 2012.
Since then, cannabis has exploded across the country.
As of right now, 10 states and the District of Columbia have fully legalized weed, while another 10 states have both legalized medical marijuana and decriminalized recreational use.
I’m expecting 2020 to be a big year for cannabis legalization on a wider, more recreational scale across the country.
States like New York, New Jersey, and Florida – where medical marijuana is legal – are on track to permit recreational use via election ballots this November, according to The Green Fund.
The same report indicates that states across the Midwest and Southwest – like Missouri, Oklahoma, Arizona, and New Mexico – will likely see some form of legislative initiatives crop up in the near future.
As recreational marijuana markets open up in more states, it’s going to create wide-open spaces for entrepreneurs to bring new products and services to a broader audience.
It’s likely that we’ll see all types of cannabis and CBD product creativity that we could never have imagined before.
And as the industry expands, I’m betting we’ll see an investment boom into cannabis-related businesses and startups… meaning that up-and-coming cannabis and CBD companies, as well as their already-established counterparts, could see more capital access than ever before.
An intensely competitive cannabis landscape
On that note, as more companies and entrepreneurs enter the legal cannabis market, the market’s product diversity will likely expand as well.
Already, the space is reflecting a greater demand for more sophisticated and sustainable cannabis and CBD-related products in the luxury and wellness markets. I’m talking about products like high-quality skincare, beverage options, and edibles that could gain even more popularity with increased brand awareness.
In my opinion, this signals that cannabis competition is about to get intense.
Larger growers buying out more and more land for their products could trigger a sharp decrease in the cost of many cannabis products.
That means that smaller cannabis operators will have to find creative ways to distinguish their products from their competition. I’m betting we’ll see a lot of these companies hop on the “green” bandwagon as a means of marketing their products as both ethical and sustainable.
Operators who can’t keep up with the competition may be eked out of the landscape altogether… But those companies that’ll be left on the scene could be in a better position than ever before.
The intersection of cannabis and real estate
Even if it is ever legalized at a national scale, I fully expect cannabis consumption to stretch far beyond its typical medical and recreational uses… and I expect this to happen fast.
In fact, I recently got in touch with someone who’s made me confident in the potential of cannabis to sink its teeth directly into other massive industries… including real estate in particular.
This guy’s name is John Burke. He’s a leading investigative journalist with over 25 years in the field, and he’s got the scoop on a once-in-a-lifetime opportunity that can bring cannabis directly into the world of Las Vegas real estate.
He let me in on one startup out there with big plans to develop America’s very first cannabis resort, smack dab in the middle of Sin City itself.
They’re well on their way to getting the go-ahead to build what could be one of the world’s most valuable pieces of real estate… and once it’s done, it could see millions of people in foot traffic every single day.
It’s a $2 billion potential deal. They’re raising capital from the general public right now, meaning you don’t have to be an accredited investor to claim your stake.
Until next time,