Now 2022 is over and 2023 has started. According to reports, 2022 was a tough yet a year of positive growth for the cannabis industry. There are 19 US states which have legalized the recreational use of cannabis and 38 states have permitted the use of cannabis for medical purposes.
The legalization of cannabis is progressing rapidly not only in the US but globally. There are many economic benefits to legalizing the use of cannabis. Apart from economic benefits, the use of cannabis for medical purposes can do a miracle. Let’s see how 2023 and the coming years will be for the cannabis industry. The cannabis industry is booming and global sales are expected to reach approximately $149 billion by 2031.
In this article, We will talk about the things you can expect in the cannabis industry in 2023 and the coming years.
- As the cannabis industry grows, so will the potential for economic growth, but the laws will also be stricter. The challenge for cannabis companies is that different countries, including the US, have different laws governing the legality, use, distribution, and development of cannabis. There are only 19 states in the US have approved the use of marijuana for recreational purposes and 38 states allow its medicinal use. A few more states may be added to the list by the end of 2023. The Ohio state legislature is also considering a bill to legalize the use of recreational weed.
- You can expect rising interest rates in the cannabis industry. The increasing rate of legalization of cannabis for medical and recreational purposes is the major factor due to which the market is expected to accelerate. Due to their uncertain legal status, the cannabis industry does not enjoy access to banking services that many other companies enjoy. This makes it difficult to raise capital and increases its cost.
- Marijuana use for both medical and recreational reasons has increased in the U.S. and is increasingly being accepted in other European countries global legal cannabis market size is expected to grow at a compound annual growth rate (CAGR) of 25.3% from 2022 to 2030, given the growing demand for legal cannabis use.
- Cannabis is the fastest-growing industry. How this industry is growing can be known from this report which says that cannabis sales to grow from $30 billion in 2021 to $55 billion in 2026, a compound annual growth rate (CAGR) of almost 13%.
The use of cannabis is becoming more accepted in society, the industry faces major challenges also which can affect sellers, suppliers, investors and cannabis companies in the future. For investors, the big challenge will be deciding which of the start-ups and established cannabis companies can weather the turmoil and succeed over the long term.
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