A recent analysis indicates that the American cannabis market is growing rapidly. Particularly, US pot sales could soon surpass beer and wine sales, RBC Capital Markets said in a note to clients.
According to the analysis, legal sales of marijuana could hit $47 billion in under a decade. Further, the analysis observes that the recreational use of marijuana will drive the growth.
American Cannabis Market
Nik Modi , an analyst with RBC Capital Markets wrote that concentrates and edibles are the most used.
“Estimates already suggest that the US category alone is $50 billion, which compares to spirits $58 billion, wine $65 billion and beer $117 billion.” RBC’s $50 billion estimate includes illegal sales, and the amount of total sales they make up is unclear,” Modi wrote.
Further, the RBC analyst notes that national legalization of marijuana will greatly boost the market value. They believe that national decriminalization could come sooner.
Interestingly, the need to decriminalize marijuana in the U.S. is especially more urgent considering the Canadian’s recent move. Since decriminalisation of the product in Canada, the country is generating heavy amounts of revenue in legal sales.
Open Letter to Trump
In August, Canada legalized marijuana amid applause from the pot enthusiasts. Interestingly, a few days later an open letter in the The Wall Street Journal addressed the the President. According to the open letter, the legalization of weed in Canada was threat to American farmers.
“Dear Mr. President, We need your help! Canada is threatening to deprive American farmers, workers and businesses from the prosperity that rightly belongs within our borders.”
According to the letter, entrepreneurs in the U.S. must catch up or wither in the face of Canadian dominance. However, according to Derek Peterson, chief executive officer of Terra Tech Corp and author of the open letter:
“Part of the effort is trying to bend the president’s ear. We know he pays attention to the mass media.”
Interestingly, calls for the legalization of marijuana come from across the globe. According to the CryptoCoin reporter, Telegrass wants Israel to legalize the product.
“Israel’s largest community-based cannabis marketplace, Telegrass, claims that it is committed to the legalization of cannabis in Israel. The community has a telegram network which connects buyers to sellers, enables merchants to list their products and expand their market,” the CryptoCoin reporter explains.
Interestingly, the publication notes that the cannabis marketplace is accepting Bitcoin. Particularly, Telegrass will use the proceeds to advocate for the legalization of pot. Interestingly, marijuana stocks in Canada are already shooting through the roof. On the other hand, popular marijuana stocks in the US are experiencing losses. Knowledgeable observers note that the behavior is typical of any young market.