- November 11, 2020
- Posted by: Kirsten Campbell
- Category: Blog
Cannabis investors won’t be left high and dry in 2021, they may have hit the jackpot
Let’s be blunt. 2020 has been a hell of a year, but it looks like 2021 could blaze a trail to legalization, given the incoming administration intends to “affirm its commitment to decriminalize cannabis.” This is fantastic, long awaited news for many across the country seeking medicinal marijuana relief and business owners who have been trying to set up shop.
High demand, higher profits
Our friendly neighbors to the north have just celebrated the second anniversary of their decision to legalize recreational and medicinal marijuana, and the results are in. There were high expectations all around, but the pandemic pushed July sales up 15%, marking the biggest monthly bump since legalization back in October 2018. The societal changes caused by the pandemic have settled Canadians into a stoned age that will likely continue into the future. According to Statistics Canada data comparing April to June in 2019 vs in 2020, consumers spent 74% more money on legal cannabis during the 2020 period.
It should be no surprise the legal marijuana market has been growing like a weed because consumers are seeking safe sources, and don’t want the added strain of wondering if their regular dealer has been social distancing. As such, black market sales have dropped by almost 5%, more stores are cropping up, legal prices have dropped and bud quality has improved. Plus, local stores keep local dollars in the community, which is much needed, considering the toll the pandemic has taken on small businesses.
Pharm to table
Canada has been an excellent guinea pig with regards to legalizing cannabis and showing American growers and lawmakers how to delve into the weeds. Lawmakers likely won’t receive much opposition as 62% of Americans are in favor of legalization and it is now even considered ethical investing, thanks to the Church of England. More importantly, the five US states with drug decriminalization on the 2020 ballot won; sweeping legal changes appear imminent. By 2025, these states are estimated to roll up a combined $3.3 billion in sales.
Flower to the people
Now that America is (finally) on the cusp of legalization, there’s an opportunity to learn from Canada’s growing pains, like the lack of diversity. The Canadian cannabis industry is 84% white, and Black and Indigenous people struggle to gain traction, even two years after legalization. There are kushy jobs in the cannabis industry, and American legalization presents an opportunity to address the barriers faced by underrepresented groups seeking to participate in the cannabis industry and smash the green ceiling. Legalizing weed will be a joint effort by many and require cooperation on the SAFE Banking Act, in order to ensure this new industry and its entrepreneurs have access to secure banking solutions. America is poised to make money hand over fist from cannabis, it’s only fair that everyone gets a shot in this new venture. Yes, we cannabis! It’s ganja be a real good time. *(Except these Canadians and their 3 kangaroos—they should probably keep off the grass!)
Fundanna (a platform operated by TruCrowd Inc) is the first equity crowdfunding portal dedicated solely to the cannabis industry