USA: the cannabis industry could reach 50 billion $ by 2026

legal industry cannabis in the United States could reach 50 billion dollars in the next ten years, which is 8 times the current market size, benefiting from various U.S. legalizations and the gradual disappearance of the black market, according to a recent report by Cowen & Co., an investment bank.

In 50 days, 5 US states will vote on cannabis legalization and 4 for therapeutic legalization. If California, where medical cannabis is already allowed, legalizes recreational use, the legal market would triple overnight, growing from 6 to 18 billion dollars.

The Cannabis is already legal in the United States. in the states of Alaska, Colorado, Oregon, Washington, and the District of Columbia, and can be prescribed for medical use in 25 states. In its report, Cowen & Co. anticipates federal legalization of cannabis, which currently enjoys more than 50% support among the American public.

A growing industry

The growth of the cannabis industry in the United States will likely lead large companies to take a keen interest, even though the economic landscape today is primarily composed of many small startups. Federal prohibition currently prevents big corporations from getting involved, even though we recently saw Microsoft to get a foothold.

The report, on the other hand, anticipates (and unfortunately) the arrival of the’Tobacco industry in the cannabis business. Vaporization, whether to replace tobacco or consume cannabis, is one of the threats to the tobacco market, which is already starting to develop its expertise in vaporization or cultivation technologies, as well as to understand the complex legal issues of the cannabis market.

According to the report, tobacco companies could account for 20% of cannabis revenue by 2036, a segment that could double the sluggish growth of their current market.

For alcohol companies, legal cannabis represents more of an enemy than a friend. Alcohol consumption has declined in the US over the past 5 years, particularly among men, while the’Cannabis use has increased. According to Cowen, the number of drinkers who smoke cannabis has increased, while the number of cannabis smokers who drink alcohol has decreased.

More globally, the size of the’The cannabis industry will increase to unprecedented levels as seen before. If their predictions prove accurate, the cannabis market’s growth would represent an annual increase of 241% over 10 years—figures rarely seen with other products.