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You have probably seen cannabis dispensaries pop up around various neighborhoods and wondered whether you should invest in such a venture. You can also order cannabis online and have it delivered to your doorstep. These are things that were not possible a few years back.
There are signs that the cannabis industry is undergoing legal and industrial changes that could turn things around. Most research is focused on cannabis’ therapeutic benefits, and there is a lot of promise. But is it worth investing in cannabis?
If you were a major investor, you could think of investing in cannabis stocks. But what if you want to focus on the retail market? If you are thinking of opening an online dispensary Canada provides a huge market at the moment.
Let’s take a closer look at some of the reasons the marijuana market has such potential and why now may be the best time to invest in a dispensary.
Why You Need to Invest in Cannabis Dispensary
Increased Legal Trend in Canada
Recreational marijuana is not legal in many countries. But in 2018, Canada legalized recreational cannabis use, making it the first G7 country to do so. What does this mean for the Canadian cannabis market? It simply means pot is legal, and weed users can now comfortably buy their rolls at government-approved dispensaries.
Many of the dispensaries that sell weed are government-owned, but the market is vast, and these dispensaries cannot meet the demand. Most people also have to buy their weed online and have it shipped due to limited physical dispensaries.
This shows that if you want to invest in the cannabis business, this is the right time to apply for licensing and build your brand before the market gets saturated.
The legalization means that many companies now focus on establishing relationships with international brands in jurisdictions like Australia and Germany, where cannabis has attained newly legal status. But many firms have a focus on the domestic market to exploit the recreational market through retail operations.
Demand for High-quality Cannabis Products
Cannabis is definitely one of the next great global industries. All the major subsections within the cannabis industry are growing exponentially. The demand for medical and recreational cannabis has increased over the last few years, expanding both the retail and extraction processes.
While weed is legal in Canada and can walk into any government or private dispensary and buy your joint, many recreational users still buy their weed from the black market. This means that there is a huge recreational cannabis market that’s still untapped. If you want to open a dispensary, you can be confident that you will have a market for your products.
You must be wondering why the illegal weed market still thrives despite the legalization. Most illegal sellers do not meet government standards, making their products cheaper. For you to run a dispensary, your products must be of high quality. You will also need to test your weed for contaminations and quality.
Emerging US. Market
If you have been watching the US cannabis market, you must have realized that the US market is expanding in states with favorable cannabis laws. But how does this help if you want to open a cannabis dispensary?
Federal legalization of cannabis in the US is on the horizon. With such potential, the market and public view on cannabis will undoubtedly shift. Of course, many people already use cannabis for medical treatment, but the US federal law does not recognize cannabis as a therapeutic product.
Opening the US markets means an increase in demand for cannabis across the North American region. Even with the current restrictions, there is still a shortage of high-quality cannabis products in the US market. If you stock quality products, you could soon start getting orders from across the border.
Cannabis Stocks
Before investing in a cannabis dispensary, you must have a broader outlook on the cannabis industry. What is happening with the cannabis stocks at the moment? Is there investor confidence in the industry? Answering these questions can help you determine whether you are making the right move.
The trend in cannabis stocks shows that there is more growth ahead. After the 2018 legalization, the stocks plummeted then rose from March 2019, then dropped again. It was such a rollercoaster that any investor would have thought twice about putting their bet on cannabis.
The cannabis back market still controls much of the market, and it was expected for stock prices to drop. But as the black market shrinks, the legal market will start to grow. You don’t want to wait until everyone jumps to the legal side to claim your stake. The right time is now when the legal market is still widely unoccupied.
Conclusion
Many people are still not sure about the future of the cannabis industry. But any serious investor with a keen eye on the industry knows that there is enormous potential ahead. More cannabis products are emerging, which could catapult the industry to unprecedented heights.
Cannabis research is also on the rise, and soon, researchers could understand its therapeutic benefits better. You want to be at the center of things when such growth takes off.
References
https://www.bbc.co.uk/news/world-us-canada-45806255
https://www.cnbc.com/2021/02/01/cannabis-reform-senators-say-they-will-push-pot-bill-in-2021.html