Most people know that the cannabis business is hot property right now. With the use of medical marijuana now legal in more than 40 countries, including 33 states in America, global sales within the cannabis industry rose from $12.2bn in 2018 to $19.9bn in 2019, with many analysts expecting the figure to hit $166bn within the next ten years.
It’s not just the medical marijuana industry feeling the boom, laws around casual use are also loosening, with 10 states in the US making cannabis legal for recreational purposes, along with Canada, Georgia, South Africa and Uruguay.
With an estimated 80% of the cannabis industry in the US still in the hands of the black market, and laws around the world moving in the direction of legalisation, the industry is set for rapid growth in the coming years. The impact on the economy is already being felt with jobs being created in many sectors and consumer spending estimated to top $23bn by 2022 in the US alone.
Head shops sell all the paraphernalia and merchandise associated with cannabis culture. People come here to buy bongs, vaporizers, dab rigs, papers, and other specialized items that are not available elsewhere. Head shop growth was previously only online with established brands like Smokecartel.com, but bricks and mortar shops are on the rise, many supplemented by an online store.
Head shops don’t stock marijuana and it was suspected that they would lose out as the number of new cannabis retailers peaked, but they have also been on the rise as laws have been relaxed, with an estimated 3000 shops currently operating in the US.
As more people are leaning towards cannabis for medical use, it’s natural that the demand for head shops will be rising in the coming years. Head shops contribute over $10bn annual into the US market and continually provide new jobs
The medical marijuana industry continues to boom year after year. Research for a variety of ailments including Alzheimer’s, MS, epilepsy, and glaucoma is constantly on the move, and the pharmaceutical sector is expected to be down $4bn years on year as medical cannabis becomes available to more and more patients.
The industry is predicted to be worth $73.bn by 2027; one of the biggest manufacturers and suppliers of medical marijuana, Canadian based Harvest & Health Recreation, saw revenue up 85% in one quarter in 2019, with many other companies in the sector seeing similar growth.
The FDA has not approved smoked marijuana for many conditions, forcing manufacturers to find other means of consumption for patients, with active ingredients being found in foods, skin lotions, oils, and more.
The passing of the 2018 farm bill in the US saw an immediate economic impact; investment in the cannabis industry shot from $3.6bn to $18bn in one year and many farmers switched to hemp immediately. The industry continues to evolve and scale up, with around 30 million sq ft of land dedicated to farming cannabis in North America.
The ballooning CBD industry is responsible for a large proportion of the growth in agriculture, with the hemp-derived CBD market set to hit $22bn by 2022. This is good news for cultivators as well as breeders – the companies responsible for developing quality, high yield seeds, as well as developing and experimenting on new strains.
Hemp grows quickly and tolerates drought, and more and more farmers are looking to leverage the lucrative plant. The demand for hemp products is expanding, with hemp being used in numerous products, including building materials, clothes, as well as being converted into biofuel.
With agricultural and medical cannabis on the rise, cannabis dispensaries are following suit, representing the customer-facing side of the industry. The place where the end sale happens, dispensaries are a completely new arrival on the retail scene and have created a whole new raft of jobs.
Consumer spending is rising to $20bn a year, and demand for cannabis industry jobs was up 76% from December 2017 to December 2018 in the US, with the average wage in the industry currently 10% higher than the national average wage. Jobs such as ‘budman’ – the retail workers, and in-shop advisors, not to mention countless other jobs in the supply chain are being created in this lucrative retail space.