New laws coming into force in Canada and several others appearing in the US makes specialists to ask themselves if cannabis industry is good for business growth.
It’s no longer news that the legalization for the recreational use of cannabis has set the Canadian retail and industrial sector abuzz. What is baffling is the enormous impact the move is making on supporting sectors of the economy, and the perceived economic and financial growth that is expected in the coming months.
Although Medical marijuana has already been made legal in Canada, the recent move to legalize the recreational use of cannabis opens a new vista of opportunity for businesses across various sectors of the economy.
This is not a hype… the growth of the cannabis industry in our view is a good stimuli for the growth of supporting businesses. Some of the sectors that are likely to witness business growth in the coming months include the real estate sector, the industrial sector and the employment market.
The Real estate Sector
Unarguably, the real estate sector is expected to receive a boost from the recent rave in the legalization for recreational use of cannabis. As the demand for cannabis increases, so will the demand for indoor/greenhouse growing spaces increase.
Today, more than 2 million square foot of greenhouse spaces are already in use with a projected 8 million square foot to be in use by 2020.
The opportunity created through the legalization for recreational use of cannabis is also causing an increase in the number of stores and business premises opening up to sell the commodity. The setup of special parlours for consumption are being touted while some already existing liquor stores are remodelling to cater for the new market.
The Industrial Sector
Cannabis related businesses are springing up. Several bright minds are developing cannabis products with quite a number being moved from the developmental stages to full production. This move is opening up more earning potentials for businesses moving into the sector.
As at 2015 pre-legalization, the Canadian cannabis adult recreational sales market stood at US$5.6 billion but today, the Canadian cannabis adult recreational use market post-legalization is valuated at US$23 billion with an expected growth to US$57 billion by 2025.
This trajectory is an industrialist dream anywhere the world over as the figures puts the Canadian cannabis market above the markets of wine, tobacco and beer.
The Employment Market
Definitely, a growth in industrialization and an increase in market will create a positive ripple effect in employment generation. More people are getting jobs in the new market even as the prospects for more job creation continues to expand.
The jobs that are available in the industry includes; construction, biotechnology and a host of others. The retail job market is not left out as the growth will cause an increase in the number of persons needed to work in the industry.
How do you define the future of an undefined market or determine its prospects or potentiality for affecting the business landscape in which it thrives?
Although there are no fixed indices, a cursory look at its support industries can help to tell, forecast or determine the future of that industry. Same is true with the Cannabis industry today.
The investment horizon of the cannabis industry in Canada is pregnant with prospect and only the early takers are prime-positioned to reap maximally of the bounty.