The cannabis industry is one of the fastest-growing industries in America.
It has been estimated that there are over 10 billion dollars worth of legal marijuana sales each year. As legalization spreads across the country, so does the demand for products to help people cope with their newfound freedom to consume this plant.
For many, one of the most exciting things about the cannabis industry is that it’s so new. With a projected $25 billion market in the U.S. alone by 2025, there’s no doubt that there will be opportunities for savvy entrepreneurs and investors alike.
But what does this look like? Where do you start?
Cannabis Industry: The Basics
As cannabis becomes legal in more states in the U.S., there are a few things that you need to know.
- Cannabis is still illegal at the federal level
- The banking industry is very complicated, and banks aren’t excited about handling cannabis money
- The best place to get started as a cannabis entrepreneur is at the local level.
Most states have bills that pre-authorize cannabis businesses. With these bills, government officials work with the Attorney General’s office and the local district attorney to enforce the law.
While several states allow for Business Act transactions (also known as business registration or business license), all but three states (Colorado, Washington, and Oregon) require Cannabis Business Act paperwork.
The paperwork allows businesses to register with local governments to collect business taxes, receive permits, apply for business licenses, and more.
Once you get a license, you will need to go through many other processes, including providing certain documents to each local authority, fire and emergency immunity, obtaining insurance coverage, and more.
Types of Cannabis Businesses
There are many types of cannabis businesses in the USA. Generally, any business that involves the sale of marijuana or hemp products is considered a cannabis-related business.
Medical marijuana dispensaries are popular since they are licensed and regulated by the government to sell cannabis to eligible patients. They may be located in a mall, local grocery store or even a hotel lobby.
Some states allow these businesses also to have an online presence for non-patients.
Some people prefer smoking or vaping their weed, while others enjoy eating edibles such as brownies or cookies made from hemp seeds. Those aren’t the only ways to consume cannabis. Other ways to consume your favorite strains include:
- Transdermal Patches,
- And more
How much money is legal cannabis making?
The U.S. marijuana industry has been snowballing, and the numbers are staggering. In 2016 alone, it was estimated that $10 billion in sales were made across all forms of legalized weed.
That’s more than double what was sold just five years ago.
And while some states have seen their pot markets grow even faster, Colorado saw its market size increase by nearly 50 percent between 2015 and 2017. In 2016, Colorado made 135 million dollars off recreational pot sales alone. Others have fared well too.
In California, where medical marijuana was legalized before recreational legalization took effect, state officials expect to bring in over 1 billion dollars per year once all aspects of adult-use marijuana become fully operational.
The state of Washington hopes to generate nearly $3 billion annually when its market opens up. Overall, we should see continued growth within the industry.
Whether you are learning about the basics of cannabis, types of cannabis businesses, consumption, or researching how much money legal cannabis brings, GC will be here to give you all the necessary resources.