It’s truly an exciting time to be a cannabis investor because 2020 is going to be a monumental year for legalization.
When all is said and done, there could be four states that legalize recreational cannabis.
Setbacks prevented New York and New Jersey from recreational legalization in 2019, but that should change soon. In 2020, voters in both states should have the chance to head to the polls and let their voices be heard.
Advocates in Florida are also working to get recreational legalization on the ballot in the Sunshine State. Without recreational sales, Florida is still projected to generate over $700 million in medical sales in 2020.
With recreational cannabis added to the mix, it could become a billion-dollar market.
If companies aren’t already in Florida, they will soon start flocking to the Sunshine State.
Equally important to the progress of legalization across the country – the voters in Arizona will have a chance in 2020 to get to the polls and vote to legalize recreational cannabis.
In 2016, voters in Arizona had a chance to legalize recreational marijuana, but it didn’t happen.
Legalization was narrowly rejected with 48.7% of voters in favor of adult-use legalization.
It could be another close call in 2020, as there is a big difference by party affiliation in terms of support for adult-use legalization.
It will all depend on who shows up at the polls.
Voters Who Want Legalization
In total, 54% of registered voters in Arizona are in favor of legalizing cannabis.
However, there is a large difference in terms of political parties in who will go and vote “Yes.”
According to statistics from a survey from OH Predictive Insights, 66% of Democrats in Arizona support legalization, 14% are undecided, and 20% are opposed to it.
In comparison, only 40% of Republicans support legalization, 9% are undecided, and 50% are against it.
Independents will be the key at the polls, as 57% support legalization.
Now, there is a lot of time left before November 3, 2020. Some democratic voters may shift their perspectives before then, depending on the effectiveness of anti-cannabis legalization efforts and what their friends and family think about legalization.
For Republican voters in Arizona, they could change their votes to a “Yes,” depending on how likely it looks that legalization is going to happen and how effective pro-cannabis campaigning will be in the state.
As it stands, things still look good for recreational legalization in 2020, but understanding the dynamics at play is very important.
If Recreational Legalization Passes
Being a medical-only state right now, cannabis sales in Arizona are projected to total $876 million by 2025.
If adult-use cannabis is legalized, it could become a billion-dollar market much faster.
And at The Institute, we believe that the key to a booming sales market in Arizona is the aging population, which is currently being overlooked.
A study released from the National Survey on Drug Use and Health found that cannabis use among seniors had doubled between 2013 and 2016.
And one of the reasons is the myriad of health problems that older Americans face.
We’ve talked about this before with the concept of a “health span.” It’s great if you live to be 120, but if you have chronic pain starting at age 60, you’ll spend half of your life being miserable. The quality of life is what matters, and that’s why people of all ages are turning to cannabis.
The National Council on Aging says that around 92% of seniors have at least one chronic disease.
In Arizona, 17.5% of the 7.1 million people are 65 or older.
Cannabis-based medicine has shown signs of reducing inflammation, promoting a sounder sleep, helping to fight stress and anxiety, improving heart health, and alleviating cancer-related symptoms.
Recent studies have also shown that CBD oil could help play a role in the treatment of arthritis. According to the Centers for Disease Control and Prevention (CDC), over 50 million Americans suffer from arthritis, and it unfortunately can cause a great deal of stiffness and pain.
While CBD oil may not be a direct cure, it could help alleviate some of the pain.
Smart Executives Have Already Entered Arizona
There are more than 200,000 qualifying medical patients to serve in Arizona. In comparison, New York has roughly three times the population, but it has less than half as many patients, according to Leafly.com.
Curaleaf Holdings Inc. made two separate acquisitions for a combined total of $25.5 million in Arizona. Green Growth Brands paid $12.3 million for a vertically-integrated operation.
4Front Holdings LLC also acquired PHX Interactive LLC, which manages a vertically-integrated license holder.
There will also be many more companies – public and private – that either build a footprint in Arizona or buy their way in, and we will have much more on that throughout the year at the National Institute for Cannabis Investors.
You can see what we post each day at NICINVESTORS.com.
Now, entering a medical-only state is a strategy we like, and this should pay off big time if Arizona legalizes adult-use cannabis in 2020.
It allows companies to build a framework, work out the kinks in their business models, and start to garner brand recognition. Firework stands open in June because they want people to know where to go in July.
It’s the same idea with dispensaries. Open one now, and when recreational legalization takes place, people will know where to turn.
Final Thoughts on Arizona Legalization
Recreational legalization almost passed in 2016, and it’s looking like it has strong potential again in 2020.
If Arizona does pass adult-use legalization, the state has an established medical market that will help its recreational market get up and running quickly.
Along with Florida, New York, and New Jersey also potentially legalizing cannabis, 2020 is shaping up to be a big year.
Throughout the year, we will be sending members of the National Institute for Cannabis Investors the biggest updates about the historic legalization efforts sweeping the country.
To stay in the loop and not miss out, all you have to do is visit our website – NICINVESTORS.com.
To you investing success,
The National Institute for Cannabis Investors