What’s the future of the marijuana industry in America?

On Behalf of | Jul 11, 2022 | Cannabis Law |

Cannabis is the most common drug people use, traffic and cultivate while the push for legalization grows globally. Manufacturers, researchers and investors have a significant interest in its marketability even as it remains illegal under federal law. California and other states have seen the marijuana industry continue to grow. The industry’s value was $13.6 billion in 2019, with 340,000 new jobs handling the plants. By April 2021, 35 states and DC have legalized cannabis for medical use. Recreational use for adults is legal in 18 states as of 2022.

How are attitudes toward pot changing?

Attitudes toward pot are much different than in the era of the 1930s Reefer Madness educational film. The film is primarily a piece of satire, and many people are more open to using cannabis. Researchers found that marijuana has medical benefits. The federal cannabis law now sees cannabis as a controlled rather than an illicit substance. The latest survey shows that 67% of Americans think marijuana should be legal. That’s double the 31% in 2000 and five times the 12% in 1969. Statistics show adults between 50 and 64 using marijuana doubled to 9% over the past decade. The same statistics show adults 65 and older increased seven times to 3% over the last decade. In 2030, the marijuana industry could make $85 billion in sales.

What is CBD?

The US Marihuana Tax Act is from 1937, but people have been using marijuana to treat illnesses for thousands of years. The US commonly uses marijuana to treat chronic pain and seizures. Cannabidiol is a natural compound in the cannabis plant that isn’t psychoactive. CBD is in pills, oils, oral sprays, creams or edibles. CBD is used by some to relieve pain and combat depression and anxiety and is a viable treatment option for some cancer patients. “CBD gummies” was the third most searched food-related term on Google in 2018. Market research estimates the CBD industry may grow 3.3x by 2022, which is $1.3 billion.

Is the FDA softening their stance on CBD?

Drugs containing CBD require the FDA’s approval because it’s a Schedule I substance. The FDA’s first CBD drug approval came in June 2018. The federal cannabis law makes it illegal to market food or dietary supplements with CBD, but the FDA is starting to soften its stance. While the federal government keeps CBD illegal, the FDA has the authority to issue a regulation on any pharmaceutical ingredient in food or dietary supplement.

The marijuana industry is growing quickly. Unlike other sectors, it may be harder for large corporations to provide cheap and generic products. The variety of marijuana strains and consumers’ interest in locally-produced artisanal products will keep smaller stores in business. People are investing millions into cannabis technology that will further shape the industry.