Marijuana Will Be Bigger Than Soda By 2030
Marijuana legalization is beginning to truly find its way, not only in places like Canada where legalization seems somewhat imminent but also in the United States where both President Donald Trump and Senate Majority Leader Mitch McConnell have both set in motion marijuana and hemp legalization moves.
Trump has paved the way for marijuana legalization while McConnell would essentially separate and legalize the use of Hemp. Both moves have prompted a large portion of the top marijuana stocks to shoot up in share prices. Those buying up the stocks may someday reap the financial rewards of early investors if statistical revenue generation trends continue on their current path.
So long as marijuana legislation continues unabated, cannabis sales in the United States could top $75 billion by 2030. It goes without saying, that’s massive scale revenue typically reserved for companies in the pharmaceutical and oil sectors. Cannabis, however, is heading in that direction due to its multitude of usefulness and likely full-legalization. The United States would likely be the world’s largest consumer of both Hemp and cannabis if legalization does indeed happen. As it stands, most of the hemp in the United States is imported. Hemp solves a great many issues, including ecological dilemmas involving climate change, that would create billions in domestic revenue under McConnell’s latest policy.
Marijuana would be larger than the soda industry if this trend does pan out. Today, the entire soda industry has a valuation of $76 billion.
Here’s what is even more stunning. Cowen and Co. predicted that the marijuana industry would hit $50 billion by 2026 pending national US Legalization. Today only nine states have recreational marijuana legalized and 29 states have medical marijuana legalized. That said, it appears the industry has already swung beyond that trend even without full-legalization. BDS Analytics has the marijuana market currently at $9 billion. By the end of 2018, that would make the market have a valuation of $11 billion, pending the trend continues. We could see upwards of $16 billion plus by 2021.
The marijuana industry’s potential for rapid growth is likely fanning pharma’s flames. Pharmaceutical companies have been linked to making contributions to groups that fight marijuana legalization. And pharma should be concerned. One of marijuana’s touted benefits is helping to relieve pain, a potential replacement for pharma’s controversial opioid ring. Marijuana could both serve to help relieve pain as well as help those addicted to opioids break the cycle. Pharma would most likely enjoy continued opioid sales, as well as continuing to create new revenue streams with medications that help resolve opioid addiction.
Marijuana legalization would be a disastrous blow to the pharmaceutical industry in general. While marijuana legalization seems to be more likely than ever under the current Trump administration, it is important to not underestimate the will and the financing of pharma. I wouldn’t predict they simply lay down and allow legalization to happen without putting up some sort of fight.
Photo by ishane
Author: Jim Satney
PrepForThat’s Editor and lead writer for political, survival, and weather categories.
Please visit the CDC website for the most up-to-date COVID-19 information.
*As an Amazon Associate I earn from qualifying purchases