Cannabis Market Brings In Significant Tax Revenues

The cannabis market is experiencing significant growth due to the accelerating pace of cannabis legalization in the United States. According to a research report published by Technavio, the global legal cannabis market will grow at an impressive CAGR of around 37% between 2016 and 2020. The report indicated that rapid adoption of cannabis by individual consumers as well as economic benefits of legalizing cannabis are some of the pivotal factors that drive the growth in the market.

The report also indicated the several other benefits of legalizing cannabis: “The high tax revenues from the purchase of marijuana for recreational purposes have led governments of various countries to legalize marijuana. The legalization of marijuana for recreational purpose will increase at a rapid pace with the increasing number of countries allowing the possession of a limited quantity of marijuana. Such developments have propelled vendors to come up with legal recreational cannabis stores, which will further propel the growth of this segment in the coming years.”

Investors Should Be Encouraged by 3 New Marijuana Statistics From The “Greenest” State

OREGON: We can assume there were quite a few cheers when California passed Proposition 215 in 1996, becoming the first state to legalize marijuana’s medical use, but 2016 could go down as the most remarkable year for the marijuana industry to date.

Since this first approval 20 years ago, the marijuana industry has witnessed 24 states in total legalize medical marijuana, of which Pennsylvania became the latest just this past week. Additionally, four states – Colorado, Washington, Oregon, and Alaska – have legalized the use of marijuana for recreational purposes. The 2016 elections could result in a sizable boost to both figures as favorability to marijuana among the American public continues to rise. Gallup’s national poll from Oct. 2015 showed that 58% of its respondents favor the idea of nationwide legalization, whereas a CBS News poll conducted a year ago this month demonstrated that roughly five in six people want to see medical marijuana legalized.

But just as exciting for the industry is the opportunity that may be at hand for investors. Marijuana is among the fastest-growing industries in the U.S., with ArcView Market Research expecting the industry to grow at a brisk compounded annual rate of 30% between 2016 and 2020, ultimately reaching an approximate market value of $22 billion by 2020. Investment opportunities where industries can sustain a 30% growth rate for a half-decade or longer simply don’t come around very often, making marijuana a seemingly attractive investment opportunity.