It was not that long ago when cannabis was struggling with the battle of legal or illegal status. After so many amendments and legislation of farm bill 2018, legal cannabis is one of the fastest-growing industries. With immense popularity and unprecedented growth, you might be wondering how the market is doing and where we are at today.
Cannabis Business History
The outbreak of legalization started in 1996, California’s passage of medicinal cannabis measure Proposition 215 and ended in 2012 with Colorado and Washington’s legalization of recreational cannabis. Now, marijuana is legal in 39 states of the U.S. for medical purposes, while in 19 states for recreational uses for adults 21 and older.
Further, 27 states have decriminalized small amounts of cannabis, allowing a certain amount of cannabis possession that breaches the law will lead to a civil charge.
The cannabis industry has turned from a black-market to a mainstream industry just in the short time of 20 years, and still, the industry is in its early stage.
The federal government still keeps cannabis as a Schedule1 controlled substance even though it grabbed the mark of $20 billion by the early 2020s. Even though the federal government has its own set of laws, the cannabis industry has a huge rise in its prominence.
The Department of Justice published a letter in 2013 known as the Cole Memorandum that restricted the federal government’s interference in state regulatory cannabis operations. The missive was later canceled in 2018 by the former U.S. Attorney General Jeff Sessions, but the industry didn’t stop growing.
Undoubtedly, the federal government continued creating obstacles; even then, the legal cannabis industry kept flourishing. According to the New Frontier Data analyst, the cannabis industry’s worth was $10.4 billion in 2018 that will be bloomed to $26.3 billion in 2025.
The industry is filling up so many gaps already, and there is a projection to see the impulsive progress in the cannabis industry in coming years.
Current State of the Cannabis Industry
In 39 states across the country, marijuana is legal for recreational or medical purposes. At the same time, there are still some parts of the USA where Marijuana is entirely illegal. This amendment in the status of marijuana has increased its popularity and demand. It opened the way for businesses to opt for cannabis startups.
According to Fortune Business Insights, the cannabis industry had growth of 50% in 2020, with a market size of $20.47 billion. The demand for legal marijuana has been increasing in the recent years and saw a spike during the pandemic. They also believe that the market is set to grow to $28 billion by the end of 2022, and even higher by 2028.
Starting a New Cannabis Business in 2022
While commencing any business, this is very important to see and understand the entire framework of the industry, where it is lying in the current scenario, the future exposure of this business, what risks are involved, and the earning potentials.
In the cannabis business, you wouldn’t find a rich history as the industry has faced many decades.
To start and learn the essential steps of starting a cannabusiness first, you must consider the status and demand of marijuana in your targeted area and how you can outclass your competitors by providing the same products and services. With more and more popularity and clearance of marijuana products, more people are jumping into the cannabis business. Don’t get left behind, reach out today and learn how Cannabis Business Resources can help you grow.