Given the significant changes that have characterized the cannabis industry over the recent past, it’s easy to say that the industry is poised for big things.
And with this rapid rate of growth, investors, cannabis supporters, and the general public are all interested in what the cannabis landscape will look like over the next few years and beyond.
What can we expect to see in this lucrative industry going forward?
Big Money Stands to Be Made
According to recent research, the legal cannabis industry will experience a lot of progress both on US soil and across the globe over the next decade. It’s expected that worldwide spending on legal cannabis will reach $57 billion by 2027. Of this amount, about two-thirds of the spending are expected to come from the recreational side while the remaining third will come from the medical side.
Even though the federal government is still keeping cannabis illegal on a federal level, the continued statewide legalization of cannabis will continue to push things along in the cannabis industry here in the US. And such growth will follow in other parts of the globe as well. Any would-be cannabis entrepreneurs will find themselves having to make a move quickly in order to get in early enough to take their piece of the pie.
The Production of Marijuana Will Be Commoditized
Cannabis production is expected to become commoditized as time carries on. Production costs will have a direct influence on market share and profitability. More specifically, infrastructure will play a key role in keeping production costs low, and as such, larger, more well-established companies in the industry will fare better than others.
Mass production of marijuana will inevitably cause prices to decrease, placing larger players in the ideal position to remain most competitive.
Cannabis May Be Removed as a Schedule I Drug
The cannabis industry has already seen incredible growth over the recent past. And should things move along as quickly as we’ve been seeing, there’s no reason not to believe that marijuana will be removed as a Schedule I Drug according to the DEA at some point.
If that happens, scientists conducting clinical trials on cannabis and its effects on the mind and body will be able to fund their studies much more easily without having to jump through all the hoops and red tape that they’ve been met with here in the US.
In turn, marijuana and all of its cannabinoids will not be constantly met with stigma and will instead be embraced as something that people can use as natural alternatives to traditional pharmaceuticals.
More Pharmaceutical Companies Will Show More Interest
As cannabis becomes increasingly accepted and as more and more clinical studies prove the beneficial effect of cannabis on various ailments, the pharmaceutical industry will express more interest. The FDA has already approved the first cannabis-based drug, Epidiolex, to treat two rare forms of childhood epilepsy. This is likely just the first of many.
As more and more cannabis-based medicines continue to pass FDA drug trials, major pharmaceutical companies will have more interests in what they have to offer.
Based on what we’ve already seen and the directional trend cannabis is headed in, we can expect the industry to continue to boom over the next few years and well into the future.