Projections for the growth of cannabis markets can seem outrageous, but the numbers to back it up are as clear as day…
A lot of fortunes have been made since the first few cannabis ventures cropped up a handful of years ago.
Many early investors in cannabis companies – including a former janitor – are now retired millionaires.
Those entrepreneurs that slept on couches set up in a side room of a cannabis greenhouse are sitting on fortunes. Fortunes that will sustain their families for generations.
But the wealth built so far pales in comparison to the fortunes barreling down the pike.
And the prospect of building mountains of wealth is drawing entrepreneurs, scientists, doctors, lawyers, and brand executives into cannabis startups in droves.
They are ditching established, well-paying careers in traditional lines of business to claim their stakes in cannabis.
They are betting their careers that the next wave of profit building cannabis companies will crest many times higher than previous waves.
And they will.
From what I see, in five years, I expect the legal cannabis market in the U.S. to climb AT LEAST eight times higher than it is today.
The Demand Base Is Set
The future of legal cannabis growth starts with the massive demand already in place.
In the U.S., 15% of the adult population smokes marijuana. This works out to about 38 million people spending money on pot each year. Of those, only about 9.5 million are legal consumers.
But as cannabis prohibition falls from state to state, a well-established market of 38 million consumers is already in place. Which gives cannabis companies a built-in market four times its current size from today’s users alone.
But that doesn’t include new demand that also gets created from legalization. The addition of entirely new cannabis consumers.
To the current 38 million current consumers we have to add new ones. We have to throw in all those people that begin to use cannabis once the stigma is gone and convenience increases. We have to add all the people that will buy cannabis products once they can buy them from welcoming dispensaries rather than back-alley dealers.
And I’m not just talking about buying joints.
The real opportunity is in cannabis-infused drinks, edibles such as gummies and brownies, and vape pens and other forms of discreet consumption. These new products, and the rapidly increasing acceptance of marijuana use among the public, will pull in millions of formerly reluctant consumers.
A lot of new cannabis companies are working hard at how best to infuse these products with cannabinoids. We cover all the publicly traded companies targeting this opportunity in our NICILytics database, or what we call “The Vault,” with detailed analysis and ratings on over 160 cannabis stocks. The attached free report to the right will tell you more about how our ratings work.
Just how many consumers will legalization pull in? One recent survey found that in states where marijuana use is legalized, the number of cannabis users shoots upward by 50%!
So, a 50% increase in consumption adds another 19 million people to the U.S. cannabis market.
If you’re interested in learning more about our NICILytics database, check out this short presentation now. Inside, you’ll learn how you can get immediate access.
To this, we must add the growth that will result from the one thing that catalyzed marijuana’s legalization in the first place – its medical benefits.
Cannabis as Medicine
Individuals who use medical marijuana most often use it to treat pain.
According to figures from the National Institute of Health and Center for Disease Control, nearly 125 million people in the U.S. live with pain on a daily basis. 50 million of those suffer so much, their pain is considered chronic.
All it takes is one-out-of-five of these 125 million people turning to cannabis to add another 25 million people to the market.
So when you include 19 million new users from the normalization of cannabis, plus 25 million more medical patients looking to treat pain, you now have a market of 82 million cannabis users.
Add in the CBD and pharmaceutical markets, and the opportunity to go global (which opens up four times the opportunity), and you’re looking at gains measured in the tens of thousands of percent.
From these few basic facts alone, the legal market for cannabis in the U.S. leaps from 9.5 million to 82 million consumers. Filling the gap between 9.5 million and 82 million customers in five years requires growth rates of 54% per year – or a legal market over eight times its current size.
To put it another way, the market will double in size every 18 months – which for owners of cannabis stocks is a goldmine of wealth tomorrow.
We’re in the “Scale” phase, and this highest growth phase of cannabis industry development will drive the value of U.S. cannabis stocks over the trillion-dollar mark. And ditching old professions for this new market isn’t the only way to capitalize on this next wave of wealth.
Executive Director, National Institute for Cannabis Investors
P.S. As the number of cannabis consumers continues to grow, so will the number of cannabis companies looking for their share of the action. This heavy saturation of new companies could be bad for your portfolio, however, if you don’t know which ones are in it for the long haul. That’s where the NICILytics database comes in handy. Our analysts have done all the research into more than 190 companies on the market to determine which ones have the potential for success in this fledgling industry. And more companies are added as the industry grows – so once you have this invaluable investing resource, you can stay up-to-date. Learn how you can get access now.
11 responses to “The Next Wave of Cannabis Wealth Is Coming”
October 13 2019