We all have heard of “medicinal” and “recreational” cannabis, but what exactly is the “cannabis industry” and how big could that be?
In order to start wrapping our minds around the size of the nascent cannabis industry it will be necessary to coin a new term: Huginormous (Huge+Gigantic+Enormous).
What we currently know about the cannabis industry is akin to our solar system: vast distances, large planets and an incredible huge star. But up until now and just like our ancestor did once upon a time, we still believe that is all there is.
Thanks to Leslie Bocskor of Electrum Parners and an interview published in CannaInsider, we are about to put our eyes through a telescope and marvel at the immensity of a six-dimensional universe that goes beyond our wildest imagination.
No need to fasten your seat belts because Kansas is definitely going bye-bye.
The first two dimensions of this Known Cannabis Universe are known as “Medicinal” and “Non-Medicinal” Marijuana (you may have heard of them as “recreational” or “adult use”).
Here is where the legal industry started and it is a market that has been slowly developing since 1996 with California. Today there are 23 states with legalized medicinal cannabis but so far only 14 have active retail markets. The second dimension is the newly regulated Non-Medicinal Cannabis. It operates similarly to its medicinal twin when it comes to production, transformation and retail but it will be taking a personality of its own as it develops.
The combined market of Medicinal and Non-Medicinal cannabis in the United States was $2.7 billion dollars in 2014 and grew 74% compared to the previous year, thanks to data published by the ArcView Group. The Non-Medicinal market recorded sales for $315 million in Colorado in its first year and $65 million in Washington State during the six months it operated. For 2015 it is estimated these two markets will reach $4 billion dollars in sales.
According to the RAND Corporation the size of the US Cannabis market is $40.6 billion dollars… And we are just getting started.
The third dimension in this universe encompasses the entire Nutraceutical industry, a term that refers to the intersection between nutrition and pharmaceuticals and that is part of the overall supplement market. In 2011 the US market was $56.4 billion and rapidly expanding as more people live by the old saying “let your food be your pharmacy”. Cannabis in making inroads and as it becomes more socially accepted, lots of products will be delivered under this umbrella.
THE MILKY WAY
The fourth dimension is the “pharmaceuticals and life science research” that will see lots of products being developed and made available in order to treat specific illnesses in very unique ways. This includes a thorough research on cannabinoids, terpenes and other compounds that are unique to the cannabis plant.
Having fun yet?
The fifth dimension is the Hemp market that could potentially be bigger than the Medicinal and Non-Medicinal Cannabis markets. It was in 1933 when Popular Mechanics published an article calling it the “New Billion Dollar Crop”. The size is not yet known but with all the technological advances developed in the last 70 years that could be applied to the transformation of Hemp, everybody thinks it could be massive.
And finally we venture way beyond the laws of quantum physics and enter the sixth dimension: Ancillary businesses and investments. Accoring to Mr. Brocskor “We are interested in the ancillary markets which can be broken up into B2B ancillary products; cultivation equipment, real estate base, software and services, things like that as well as the B2C ancillary markets.” In other words, everything that supports a legal a legitimate industry in full expansion.
The known universe of cannabis today resembles the time right before the first modern telescopes were coming online and the once upon huge solar system was dwarfed by the reality of the galaxies and the vastness of the entire cosmic horizon.
From medicinal to non-medicinal, from neutraceuticals to pharmaceuticals, from Hemp to everything that supports an industry based on a wonderful plant very well worth in the hundreds of billions of dollars. The known cannabis universe is huge, is gigantic and it is enormous: Even Huginormous could not be enough to describe what we have in front of our eyes.
After more than 70 years of a strict and terribly damaging prohibition we are not just seeing the emergence of the next great American industry: We are witnessing a world wide Revolution.
Can I have an amen?!
Source: http://www.cannainsider.com/leslie-bocskor/ Thanks to Cannainsider and Leslie Bocskor.