Aside from the health sector, various industries will benefit from the marijuana legalisation
Ships that are sailing on the same ocean would also rise if they are carried by the next huge wave. In the same way, the legalisation of cannabis, which means the lawful production, development and distribution of the marijuana drug that comes from the planet, will trigger growth in other related industries. Indirect sectors like housing, tourism and banking would benefit, and not just the most obviously related ones like medical devices and transport. Research by Med-X Inc. , the California-based health and medical company that has opened its doors to potential donors and crowdfunders, says the medical cannabis industry in the United States will earn $21.8 billion (AUD$28.5 billion) by 2020. After a few years, sales can increase up to $37 billion (AUD$48.3 billion).
While many parts of the US are studying the bills that can legalise the production, development and distribution of marijuana, some of the 14 states that have already done so are already reaping the benefits. According to the Daily Star Albany , Colorado already experienced $100 million (UD$130.6 million) in cannabis sales in 2015, while Oregon, which only opened its first few shops that can sell the drugs on the counter on October 2015, garnered $11 million (AUD$14.4 million) in retail sales on that first month alone. The Boston Globe weighs in that Massachusetts will receive $78.7 million (AUD$102.8 million) in sales this year, which is far above the initial $7.9 million (AUD$10.3 million) in 2015.
One interesting point that the Boston Globe points out is that the entrepreneurs and venture capitalists who attended a meet-up at the Microsoft NERD’s Center also saw the possibilities of growth in industries that would benefit from a medical marijuana legalisation. Medical devices like vaporisers used by patients who are using cannabis as a treatment would expand. There are more innovative ideas in the article — a cellphone case that could store weeds for users who are always mobile, and a software that tracks the transport of marijuana.
While these ideas are interesting and are worth watching, existing industries would experience a resurgence once legalisation allows the cannabis-producing companies themselves to flourish. Banking institutions stand to capture an entirely new and huge market. Right now, the tight regulations that govern financial institutions, along with traditional concerns linking the drug to money laundering, have made bankers skittish about getting into the trade. Only three percent of the 6,700 banks in the United States deal and transact with bona fide cannabis-companies, and accept and manage their accounts. Legalisation and regulated use will remove the lid of fear from the banking industry, and a majority of those financial institutions will find themselves taking care of a new group of customers.
Tourism can also benefit given the recent experience of certain states. Bookings in Seattle’s hotel rooms rose by more than 60 percent after the state legalised marijuana. Denver’s hospitality and tourism industry enjoys a 70 percent increase every year during the region’s celebrations where marijuana customers can take a puff of their favorite weed without fear of being jailed.
On a more altruistic level, the legalisation of marijuana in California can lead to the creation of shelter for its homeless living and sleeping on the streets. Fortune discloses one government solution to raise the $2 billion (AUD$2.6 billion) needed to create affordable housing accommodations for the state’s poor: tax the cultivation and sale of medical marijuana by 15 percent, after it is legalised.
Legalisation is the torch that will light up the cannabis rocket to soar into the sky. The absence of it is like a lid dampening its potential. While 14 states have already passed the necessary bills, others are still studying it. Companies like Med-X, Inc. publish magazines like The Marijuana Times to educate the public about the potentials of the cannabis industry, medical and financial, while dispelling the myths that have helped contribute to its slowdown.
US states can take a cue from Israel, which has legalised the cultivation, development, and research of cannabis since 1996. The stalwart nation is positioning itself to become the leading cannabis tech hub in the world. It’s not just the cannabis growers who are profiting from the ride. The Jerusalem Post lists down several cannabis companies that expanded their main core business into other entrepreneurial arms that are providing revenue while employing people: CanoMix’ plant-breeding platform; Eybna’s flavor-enhancing chemicals; and Pharmaseed’s venture into clinical trials.
The medical marijuana industry is sailing on the promising ocean of profitability. Legalisation will enable the major players to prepare their flagships and invite the creation of new vessels.
