Just when you think that the current COVID-19 pandemic will bring all businesses to their knees, there is one particular industry that has managed to thrive — the medical cannabis business.
Medical marijuana or cannabis is legal in 33 states in the U.S., as well as in the nation’s capital District of Columbia. This means that there is a huge market for the product and a big chance of enjoying a lion’s share of this market.
If you’re still contemplating about delving into this industry, here are some great reasons why you should invest in medical cannabis right now:
1. The industry is booming.
As mentioned, the medical cannabis industry hardly slowed down in terms of sales since the COVID-19 pandemic reached U.S. shores. In fact, according to GrowGeneration CEO Darren Lampert, their company saw a 50% rise in walk-in customers for consecutive quarters. “Business is booming,” Lampert said in an interview.
This superb stability amid a global health crisis that affected practically all other industries is a good sign for potential investors in the medical marijuana business. GrowGeneration’s $43.5 million quarterly revenues should be enough proof of how urgent it is to capitalize on the industry’s boom, especially since the COVID-19 pandemic is projected to last until at least the following year.
2. Cannabis stocks will likely rise in the following months.
In addition to medical cannabis’ outstanding sales performance, the volume of cannabis stocks is expected to rise for the months to come. This is in great part attributed to the impending votes in some U.S. states (such as New Jersey and Arizona) that are targeted towards the legalization of recreational marijuana.
This means that aside from the already humongous medical marijuana market, future investors, and current players in the industry can expect sales to go up.
3. Americans are currently stocking up on medical marijuana.
Starting in March 2020, Americans who realized that they will be staying home longer than usual have begun stocking up on legal marijuana. This further contributed to the sales growth that industry players have been enjoying amid the pandemic.
Medical marijuana has become an essential commodity, alongside prescription medicines, groceries, and paper products like toilet papers. With a lot of people still choosing to stay at home to avoid catching the deadly virus, there should be a big market to cater to for months to come.
4. Important medical marijuana legislations are being crafted.
Currently, legislative efforts are underway in Congress to enact laws that will further benefit the medical cannabis industry. These measures include the passing of the First Step Act and the SAFE Banking Act that is now pending in the U.S. Senate.
These legislative efforts could provide the medical marijuana industry with important leverage to make record profits. Since both Democratic and Republican parties have expressed joint support for pending medical marijuana-related legislation, the future is undeniably bright for the industry.
Cities are designating dispensaries as “essential businesses.” Some U.S. cities have designated medical marijuana dispensaries as an essential business, which means that they are open for clients, unlike other non-essential businesses. This is yet another reason why the industry is able to keep itself thriving amid the pandemic that negatively affected many US industries.
If you’re convinced that medical marijuana is worth your money, it’s critical for you to first consult with a business lawyer. This is to have helpful insights into the legalities that you have to deal with to ensure that you’re investing properly and in accordance with all relevant local, state, and federal laws.