By now, the retail cannabis market in the US can be said to be reaching a hearty froth. That is to say, there is now more cannabis cultivation, processing, and distribution within the United States than there has ever been. Coming along with this grand wave of cannabis retailers is a host of perspectives on where this industry is going to go, especially considering how much cheaper it is to grow cannabis compared to just five or ten years ago.
So, what is the future of the retail cannabis market? Will it continue to edge upward as more and more states adopt laws that allow for medical and recreational cannabis consumption? Or, will the cannabis market as a whole reach a kind of homeostasis, petering out before it just becomes completely commodified.
Here at One Giant Arm, we have a few things to say about it.
What Was Great for Colorado…
…will be great for all of the other states that decided to follow suit by allowing entrepreneurs to enter the cannabis market. We are bullish on pot, because it truly is a win-win proposition for everyone involved. Here are three main reasons why:
- Cannabis consumption among those who use it medically genuinely increases quality of life. Because of this, there will almost always be a market for cannabis, even if its sale is restricted to medical consumers.
- The taxes levied on pot sales often go towards urban development and community improvement programs. These programs can include support for those in need like the homeless and underfunded city schools.
- There doesn’t appear to be any correlation between cannabis legality and motor vehicle crash fatalities. In fact, in places like Denver, Colorado, cannabis legalization has been accompanied by a dramatic decrease in violent crime and death due to overdose.
If you’re someone who has thought about starting a business, why might you want to consider starting a cannabusiness? Well, first and foremost, it can be immensely profitable. Also, it’s still fair to say that the cannabis industry hasn’t fully matured yet, meaning now might still be a good time to get in on the action while the getting is good.
But, there is a steep price to pay.
Licenses for growing and distributing cannabis can be exorbitantly expensive. As much as $100,000 might be required just for the license to go forth and grow, and even then you still need to take into account capital expenses like growing equipment and storage facilities.
For those investors who take the longview on cannabis and who have the money to sink into it, there could still be a pretty penny in pot. We shall see what the future of weed brings!
