Now more than ever the cannabis industry has reason to be excited about our future. Support for legal marijuana is at an all-time high. In fact, the number of Americans favoring legalization has doubled in less than 20 years.
https://www.viridiansciences.com/blog/state-of-the-cannabis-industry-april-20-2018
2. StateOftheMARKET
Sales in North America
*Arcview Market Research Desember 2017
Aside from cryptocurrency,
there is simply no other
industry changing as
rapidly or as unevenly as the
cannabis sector.
Troy Dayton,
CEO of cannabis analytics firm
The Arcview Group
2016 2017
HIT $10 BILLION
33%
State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
3. State Of the MARKET
State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
a report issued by Cowen and Company.
U.S. nationwide sales
are expected to exceed
by 2030
“a figure comparable to the sales of
soft drinks in 2017.”
$75 billion
4. State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
Among other findings, the report revealed:
• California’s medical market is already as big as
the total markets in Colorado, Washington, and
Oregon combined.
• Nevada retailers generated more than $27 million
the first month of adult-use sales, according to
the Nevada Department of Taxation.
• Investment money continues to pour into the
cannabis business.
State Of the MARKET
5. State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
According to a report from New York-based
cannabis financial advisory firm Viridian
Capital Advisors, by the end of November 2017,
marijuana companies worldwide had raised
approximately $2.7 billion in capital in 2017,
almost three times the amount raised in the
entirety of 2016.
State Of the MARKET
6. State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
The Hemp/CBD Market Is Exploding
Currently, hemp production in the U.S.
is exploding. Hemp production more
than doubled in 2017 and appears to
be on course to top $1 billion this year.
Furthermore, it’s expected to grow to $1.7
billion by 2020. According to cannabis
data and analytics firm New Frontier Data,
hemp production totaled 25,541 acres
(10,336 hectares) in 2017.
7. State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
US’ First Exchange-Traded Fund (ETF) Launches
ETFMG, Alternative Agroscience ETF, recently
became the first U.S. traded fund dedicated to
investing in marijuana cultivators and distributors.
The potential for a marijuana ETF is huge.
Individual investors have been clamoring for a good
way to get in on the exploding cannabis market.
Horizons Marijuana Life Sciences ETF (HMMJ),
another ETF which recently launched, trades on
the Toronto Stock Exchange. The Horizons ETF has
already built up more than $200 million in assets.
8. State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
Tobacco and Alcohol Want In
Both the tobacco and the alcohol industries—two other highly regulated adult
markets—are eyeing their potential entry into the cannabiz, not just for vertical
growth, but also to stop losses.
Cigarette smoking has seen a decline in recent years, some portion of which
experts attribute to legal cannabis. And alcohol sales are flagging in states with
legal cannabis. In fact, in the tourist town of Aspen, Colorado, cannabis sales
surpassed alcohol sales—a first in this country (and probably not the last).
Marijuana is sapping tobacco and alcohol sales in two ways. First, they’re taking
market share away as cigarette smokers and drinkers choose to forgo those
products in favor of cannabis. Second, cannabis has been shown to provide an
effective treatment for helping smokers and alcoholics kick the habit.
9. State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
The State Of the Union
There’s quite a bit of activity going on in
cannabis politics at the federal level currently.
To say that recent events in Washington DC are
historic might be an understatement. Even if
some new opportunities for cannabis freedom
which have arisen lately don’t pan out, they
are a sign of the times—and a good sign for the
industry.
10. State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
McConnell’s Hemp Bill
US Senator Mitch McConnell recently
introduced “The Hemp Farming Act of 2018,”
also affectionately known as “The Hemp Bill.” If
passed, this legislation would effectively remove
hemp—marijuana’s non-intoxicating cousin—
from the Schedule I list of the DEA’s controlled
substances, forever divorcing hemp from
marijuana.
11. State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
President Trump’s Pledge To Protect MMJ States
The Ides of March of 2018 produced some
news out of Washington which was so
unexpected that some in the industry called it
“headspinning.”
Colorado Senator Cory Gardner announced that
President Donald Trump had pledged to sign
into law a bill allowing states to determine their
own marijuana legislation, free from federal
interference.
12. State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
Additional Federal Activity
In addition to these developments, there
are other pieces of cannabis-related
legislation in the works at the federal level.
New Jersey Senator Cory Booker’s
marijuana bill, the Marijuana Justice Act,
seeks to legalize cannabis at the federal
level. The bill recently garnered support
from U.S. Senator Ron Wyden, a fellow
marijuana reformer, and also Bernie
Sanders, among others.
Proposed back in August of 2107, the
Marijuana Justice Act seeks to remove
marijuana as a Schedule I drug under
the Controlled Substances Act, but it
doesn’t stop there. Booker’s bill is also
meant to undo damage done from
decades of criminal charges involving
marijuana.
13. State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
In other Federal news:
• The U.S. Department of Veterans Affairs implemented a new policy
encouraging doctors with to talk more about marijuana with
veterans.
• Republican support for cannabis continues to grow and has reached
a majority.
• The Koch Brothers publicly reprimanded Jeff Sessions for rescinding
the Cole Memo, saying he was stomping on states’ rights.
14. State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
The State Of the States
The news is just as exciting on the
state and local level. Although there
are always setbacks, for the most
part, there has been massive forward
movement on cannabis freedom
for both medicinal users and
recreational users.
15. State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
California Kicks Off RMJ
The biggest news this year is coming out of California, which kicked off
recreational marijuana sales on January 1st. It’s been a bumpy road for
cannabis for many decades, and the start of recreational sales was no
exception. The dust still has not settled.
California was the first state to allow legal sales of medical marijuana in
1994, long before anyone dreamed of legalizing recreational cannabis.
However, with the passing of Proposition 64 in November of 2016, it’s now
all but certain that cannabis will soon be one of the state’s staple crops.
After the first quarter of 2017, California’s sales are on track to break $4
billion for the year. According to a report in The Cannabist, year-over-year,
sales increased 31 percent in 2016 and another 15.3 percent in 2017,
putting marijuana sales at $1.5 billion for 2017.
16. State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
Nevada Also Kicks off RMJ
The Silver State began selling recreational cannabis
six months before California in the summer of 2017.
Initially, the state of Nevada had projected its marijuana
industry to hit $50 million in the first year. But,
according to this latest report, the state is on track to
sell $60 million worth of both MMJ and RMJ.
Currently, Nevada is selling roughly $1 million worth
of cannabis per day. Tourism is likely to be playing a
prominent role in the success of Nevada’s cannabis
market.
17. State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
Vermont Makes History, Passes Legalization Legislation
In a history move, lawmakers in the state of Vermont
become the first US state to legalize marijuana via
legislative action—as opposed to a voter initiative. The
action came only two weeks after US Attorney General,
Jeff Sessions trashed the Cole Memo.
The law has no provisions for building a regulated
market. The state will permit the possession of up to
one ounce of marijuana and a maximum six plants
beginning July 1.
18. State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
In Other States…
• Colorado sales neared the $1.5 billion mark in
2017.
• “Arizona Medical Marijuana Reform Act” sailed
through the Senate.
• The first social use club opened in Colorado.
• A Utah medical cannabis petition surpassed
signature requirement.
• At least four states are expected to have
marijuana-related measures on ballots this year.
• In the Northeast, New York, New Jersey, and
Connecticut are all considering legislation
• New Hampshire decriminalized cannabis,
making it the 22nd state to do so.
• Virginia is considering a bill that could
legalize CBD for medical use.
• New Jersey Gov. Elect has pledged to
legalize cannabis.
• Texas opened its first low-THC dispensaries.
• Pennsylvania launched its medical
marijuana program.
Much is also happening in other states—so much that we can’t possibly cover it in this article. But here
are a few bullet points on happenings around the country:
19. International
State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
Canada Likely To Pass
Recreational Cannabis
Legislation
20. International
State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
Uruguay First Country
To Sell MMJ In
Pharmacies
21. International
State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
Republic of Georgia,
Decriminalized
In November, the constitutional court of the
Republic of Georgia decriminalized cannabis
use, ruling that it is unconstitutional to
prosecute someone for consumption. Although
growing and consumption are now permitted,
the sale and purchase of cannabis is still illegal.
22. International
State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
Catalonia Makes It Legal
Cannabis was legalized completely for
the Spanish region of Catalonia. As of July,
cultivation, consumption, and distribution of
cannabis is legal for members of designated
cannabis clubs which will be regulated by the
government.
23. International
State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
Mexico Goes Medical
In June, Mexican President Enrique Peña Nieto
signed a bill to legalize medical cannabis. The
new policy calls for the Ministry of Health to
create and implement new regulations to
monitor cannabis and all of its derivatives. Peña
Nieto had previously taken a very strict stance
against cannabis, but changed his mind in
recent months. The government is said to be
considering full legalization and watching to see
what happens in California.
24. International
State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
Greece Adopts Medicinal Use
Alexis Tsipras, the Prime Minister of Greece,
announced in July that he passed a bill allowing
doctors to prescribe cannabis to their patients
for a variety of medical conditions. During a
press conference, Tsipras stated, “From now
on, the country is turning its page, as Greece is
now included in countries where the delivery
of medical cannabis to patients in need is
legal.” Greece is now looking at ways to import
cannabis products into the country.
25. International
State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
Germany Calls Cannabis
Medicine
On January 19th, voters in Germany unanimously
approved a new law, aptly named, “Cannabis
As Medicine.” People with preapproved, severe
illnesses will be able to buy cannabis with a doctor’s
prescription. Rather than having a bill of conditions
for which marijuana is allowed, doctors will be able
to prescribe cannabis at their own discretion, for
whatever they believe it can benefit. Other European
countries are expected to follow Germany’s lead.
26. Conclusion
State Of the CANNABIS INDUSTRYVIRIDIAN SCIENCE
Now more than ever the cannabis industry has
reason to be excited about our future. Support
for legal marijuana is at an all time high. In fact,
the number of Americans favoring legalization
has doubled in less than 20 years. A recent
Pew Research Center poll found that six in
ten Americans now favor legalizing marijuana
nationwide.
“About six-in-ten Americans (61%) say the use of
marijuana should be legalized, reflecting a steady
increase over the past decade,” Pew researchers
write in their findings. “The survey, conducted
in October [2017], finds that the share of U.S.
adults who support marijuana legalization is
little changed from about a year ago – when 57%
favored it – but it is nearly double what it was in
2000 (31%).”
The report also notes that a slight majority of
republicans—51%—now support ending the
prohibition of cannabis.
With state programs getting ironed out, and very
promising federal activity, it’s all but guaranteed
that interest and support for the burgeoning North
American cannabis industry will continue on its
remarkable growth trajectory.
www.viridiansciences.com