The New York-based investment bank called Jefferies Group LLC predicts the cannabis industry could achieve an impressive value globally of $130 billion US in as little as 10 years. Of course, this prediction would require one major aspect. That aspect is Latin American, Europe, and America would have to loosen their stance against cannabis. The Jefferies Group estimated that cannabis will be worth $80 billion in the US by 2029. As for the global cannabis sector, they predict it will be worth an additional $50 billion in the same time period. The group also expects that America will become the largest market for cannabis in the world over the next decade.
Confusing Statistics Leave Many Scratching Their Heads
These figures are a little confusing to some. Canada and Mexico have legalized cannabis along with countries such as Israel, Uruguay, and others. A global cannabis trade community already exists that America is currently missing out on. Investors are taking millions and billions of dollars that could potentially have been invested in American businesses up north into Canada. It seems America is falling behind yet cannabis predictions like these claim they will be on top in the coming years.
When US President Donald Trump signed the 2018 Farm Bill which removed industrial hemp from the Controlled Substance Act, Canadian cannabis companies jumped on this opportunity. Canopy Growth entered the US CBD market when they were granted a license for the cultivation and production of industrial hemp in the state of New York. The initial investment they pledged was $150 million to go towards their first production facility. This could have happened decades ago, but the US is moving slow.
The Chaos of It All
Predictions and numbers with this newly budding industry are difficult to peg. New laws, regulations, and other issues can constantly factor in changes that were not anticipated. What if every state legalized tomorrow? Or, what if the federal government changed its stance and removed cannabis from the CSA altogether? What if heavy taxation and over-regulation were to destroy the same legal market that so many people are working diligently to create?
Is there a group out there that factors in the chaos theory to equate for the many different millions and billions of dollars relating to cannabis predictions? The one thing that is a given about cannabis is that people love it. With or without government approval it will continue to grow as it has throughout the past into a sea of green.