Why The Cannabis Revolution Can’t Be Stopped
Peter Sayles |
The idea behind the cannabis revolution – cannabis becoming globally legal – is simple.
There’s hundreds of billions of dollars to be made by all parties.
By people, companies, and governments alike. All want a slice of the pie.
It’s the modern day gold rush.
And so far… everyone is happy. The United States is the perfect place to start looking. Millionaires are being made by the day. Billions will be made by companies.
Cigarette company Altria invested $1.8 billion in cannabis producer Cronos. Biopharma company Novartis partnered with cannabis producer Tilray. And beer maker Constellation Brands invested $4 billion in Canopy Growth Corp.
The U.S. government is waking up to the reality too… slowly, but surely. We wrote about a half dozen U.S. states surpassing their highest expectations of tax revenue.
Research firm Statista came out with more numbers to back up the claim. It reported on cannabis tax revenues, the jobs its creates, and where that money is allocated to.
Those numbers are only going to grow. The government can’t turn back now. Especially not after the hundreds of millions of tax dollars its bringing in.
The state of Washington brought in over $319 million in tax revenue last year. California came in second with $300 million – even though the state is dealing with an overbearing amount of red tape. Colorado brought in $266 million last year.
Below is a Statista image of U.S. states and their tax revenues last year.
But the cannabis revolution doesn’t stop at tax revenue.
After all, the companies providing the tax revenue are the ones providing the jobs.
There were about 120,000 cannabis jobs in 2017. Two years later and that number has almost doubled to 211,000 – according to research firm Leafly.
California is predicted to generate more than 10,000 jobs this year. Florida should bring in another 9,500.
All told, Leafly suggests total jobs will rise to 296,000 by the end of this year – a 40% increase.
The problem though is legal cannabis jobs don’t get recorded in the federal government statistics. It’s still a taboo industry.
One which the federal government still classifies cannabis as a Type 1 drug – on the same level as heroine.
But this isn’t stopping states from pushing forward. State politicians are salivating at the prospects of the cannabis boom. They’re looking at each other’s job gains and tax revenues… and seeing the boom.
The cannabis industry is expected to outpace every industry in job growth. The renewable energy industry, health care, and home care aides all lag behind cannabis in projected job growth.
The projections are pretty staggering.
California’s projected to have over 58,000 cannabis related jobs by 2020 – a 21% increase year-over-year (yr/yr).
Massachusetts is projected to have over 12,500 cannabis jobs by 2020 – a 317% increase yr/yr.
Florida will see a 50% jump. Oklahoma a 109% jump. And Arkansas a 611% jump.
The growth is hard to fathom. But we’ll just leave you with this.
Legal cannabis sales globally were $12.2 billion in 2018. That number is projected to reach $31 billion by 2022… a very conservative number by our estimates.
Another independent report we read suggests it could reach $146 billion by 2025 – an annual growth rate of 42%.
Everyone should be looking at the cannabis market with the idea of finding the best companies to profit from this trend. You could easily 10-20x your money in the next five-ten years from the cannabis industry.
MightyTrades readers have already taken advantage. We took profits of 95% recently on our top cannabis stock. (It’s now back below our buy up to price for your chance to get in ASAP).
We have another company in our portfolio that is exposed to the cannabis industry and pays a solid 6% dividend.
And we have a few on our watchlist which we’ll reveal if you sign up to our e-letter here.