Are you interested in investing in the cannabis industry but don’t have any knowledge of it and how it works? Do you want to know everything you can about investing in the cannabis market before you go ahead and do it?
The cannabis market is growing rapidly, and there are many opportunities for investors who want to get in on the action. However, before investing in this industry, there are a few things that you should know. Here are five things that every investor should know about the cannabis market.
The cannabis market is growing rapidly.
When understanding the cannabis market as an investor, there are many things you need to keep in mind and many things that you need to learn to have a good understanding of the market as a whole.
One of the first things you should know as an investor when looking at the cannabis market is the fact that the cannabis market is growing at an incredibly rapid rate. This growth is largely due to the legalization of recreational cannabis slowly making its way around the world, with many places having already legalized it.
With the legalization of cannabis comes the growing demand for the plant as well as consumer products such as uniquely – shaped bongs, pipes and vapes. According to a report from Grand View Research, the legal cannabis market is expected to grow from $10.7 billion in 2018 to $37.3 billion by 2026. This rapid growth is driven by the legalization of cannabis for medical and recreational use in an increasing number of countries worldwide.
The majority of the cannabis market is still illegal.
Moving on down our list, the next thing that every investor should pay attention to when investigating the cannabis market is that most of the cannabis market is still illegal and therefore investing in this market could be a little tricky.
While the legal cannabis market is growing rapidly, it still only represents a small fraction of the overall market. In 2016, the illegal cannabis market was estimated to be worth $46.4 billion, while the legal market was only worth $6.9 billion. This means that most of the cannabis market is still operating in the shadows.
Although many countries around the world are well on track to legalize the use of cannabis for recreational purposes, there are still many places that have not yet legalized or even decriminalized it. However, there is a much larger group of countries that have legalized the use of cannabis for medicinal purposes given that you have some kind of proof of requirement for medication.
With the majority of the cannabis market still being illegal, it could mean a lot for the potential future growth that an investor could find within the cannabis market, or it could be detrimental depending on which way the industry goes.
The black market is still thriving in some states.
Because the cannabis market is still illegal in many places around the world as well as in some states around the United States, it comes as no surprise that the black market is still thriving in some states within the United States.
Although in some U.S. states cannabis has been legalized, the black market is still thriving. This is because taxes and regulations on legal cannabis businesses make it difficult to compete with illegal growers and dealers who can sell their products at a lower price. As a result, many consumers are still turning to the black market to purchase their cannabis.
Cannabis companies are facing challenges accessing banking services.
Another big concern is that cannabis companies face many challenges when it comes to accessing banking services, as banks typically cannot offer their services to cannabis companies because of legal reasons.
Cannabis companies face several challenges when it comes to accessing banking services. Because cannabis is still illegal at the federal level in the United States, banks are hesitant to provide services to these businesses for fear of being accused of money laundering or other crimes. As a result, many cannabis companies are forced to operate on a cash-only basis, which can be difficult and dangerous.
Investing in cannabis companies comes with risks.
Finally, as with any investment, investing in cannabis companies comes with risks. However, investing in cannabis companies might come with even more risks because of the unknown future of the industry.
Investing in any company comes with risks, but investing in a cannabis company comes with its unique risks. These include regulatory risk, as changing laws could impact a company’s ability to operate; financial risk, as most companies are not yet profitable; and reputational risk, as negative public perception could impact a company’s bottom line.