Cannabis are growing into mainstream as a business opportunity, and it’s easy to forget that just a few years ago, this industry possessed too much risk for many investors. However, the experts say that cannabis will become more and more like other products because of the expanding legalization but there still remains a lot to achieve in this budding industry.
Investing in the stock market can be one of the best places to create wealth because of the endless opportunities it offers to your money and when you have a hemp farming business plan, you will be amongst one of the mavericks. As an entrepreneur, you will be interested to put your cash behind companies that can grow their revenue. and one of the most promising can be found in the cannabis sector.
Cannabis is one of the fastest-growing industries across the world.
In the U.S., the sector is growing at a rapid pace where 11 states and Washington, D.C., have legalized marijuana completely. 33 states have legalized it for medical purposes. Canada is the world's biggest cannabis market outside the U.S. who legalized cannabis flower in 2018 and cannabis derivatives in 2019. Uruguay, Peru, Spain, and South Africa are the other countries where marijuana is decriminalized. Understandably, the legal status of cannabis is spreading and the sector in general has even kept up its scope during the quarantine. That said, it should be understood that not every pot-related company is a winner. So when you are making a hemp growers business plan. You need to pick the right ones, to get surprisingly happy returns and let you have a long-term portfolio.
Generally speaking, there are three broad ways to invest in the cannabis sector. Companies such as Green Thumb Industries (OTC:GTBIF) and Canopy Growth (NASDAQ:CGC) are involved in cultivating and growing marijuana itself and names such as Scotts Miracle-Gro (NYSE:SMG), are involved in distribution and retail marketing.
Here are three reasons why investing in the right cannabis stocks is a wise choice if you can hold it for long terms -
1. Long-term growth
Given all the buzz around, the increasing legitimacy of the cannabis market is expected to grow tremendously. Because of legalization, the market should expand both recreationally, and also medicinally. The global legal marijuana market is anticipated to be around $73.6 billion by 2027 as the report published by Grand View Research shows. Cowen analyzed that "the cannabis market could generate as much as $75 billion in gross annual sales by 2026''. Basically, when you can look past the short term, there's chances for tremendous growth for the global cannabis industry.
2. Outstanding revenue numbers
Given the legal status of Marijuana in Canada, it allows the pot companies to be traded freely on the country's market exchanges. Among these exchanges, there are plenty of U.S. and Canadian businesses involved with marijuana which have public trade relation on U.S. stock markets. As marijuana is still illegal on a federal level, it is not possible to trade "pure-play" marijuana companies on U.S. markets. But with the expansion of the legalization, it is possible for companies to join the public listings, which can eventually boost the sector's fortunes in the coming years in general.
3. Demand is booming
If you look at the revenue numbers of the expert companies, it all indicates robust consumer demand. Across states like Colorado and California, where you can find both medical and recreational cannabis legalized, the business is booming. Despite lockdown orders, it has allowed cannabis sales to remain strong, and is seeing a rising demand across the U.S. market. For instance, the Colorado legal cannabis market crossed more than $200 million in monthly sales in June last year. Illinois is the most recent state to legalize cannabis which also reported record monthly sales of $63.9 million in August. The ultimate trend is clear that the Cannabis products are in high demand.