What will the Cannabis Industry look like in 10 years?
Spoiler alert…the cat is out the bag when it comes to cannabis. Some states have legalized it for recreational use, others for medical use, and the CBD craze is everywhere. 62% of Americans favor legalizing cannabis. On the other hand Cannabis is still listed as a Class 1 drug right next to Heroin. All of these factors weigh in on what this weed will look like in a decade.
There are a variety of large cannabis companies that are being traded on the Canadian stock exchange. Most of them backed into the stock exchange taking over shells and turning them into productive stocks. Many of these companies have built their own brands, their own brick and mortar operations, own several companies under one umbrella, are buying up smaller brands and are providing medical cannabis products.
So, what is the future? Eventually each state will either allow cannabis to be sold either in stores (like liquor stores) that have licenses to distribute recreational products. Each state might vary. They will grow at a rapid rate selling anything from flower to edibles. There are already many of these stores in states such as California and Colorado. Some of these stores are purely vertical brands such as Dosist and MadMen that sell only their own products and others that sell every product being made these days. It is like an overwhelming good liquor/wine store.
If the Federal Government reclassifies Cannabis as a Class 2 drug, then things will get really interesting. There are several Cannabis companies doing research and creating products that are thinking about the next generation of medical products. Drugs anywhere from treating epilepsy in children to anxiety to inflammatory. As a country we have not continued to do the research about the positive affects of CBD or THC like other countries such as Israel. The companies in the states who are working on this are collecting significant data with an eye towards taking market share of the big Pharma companies.
Pharma has created a fury that has made many consumers wary of taking their products. They are wondering if their doctors should really be prescribing those drugs. We can all search on Dr. Google and find out the ramifications of those drugs and are thinking about other options as health and wellness becomes a huge part of our every day conversations. After all, the biggest group of people purchasing cannabis products is not the millennials but the baby boomers.
No doubt that most of the new CBD consumer products companies are overvalued as much as the publicly traded companies in Canada that are trading 10x’s revenue. There will be a check in the market as there always is but for right now, the industry is a bit of a wild card. There are plenty of super smart people in it who are playing the long game. My guess is that those people are making a smart bet and the benefits for all of us are huge.
Most important is every person who has been incarcerated because of weed, should be released from jail, have their record wiped clean and given some type of aid or help to get a job…perhaps at a dispensary.