Cannabis is the Next Retail Renaissance
It will be like 420, every day.
You don’t have to be a futurist, to tell that cannabis the next big thing. According to Star Micronics, the legal cannabis market was worth an estimated $7.2 billion in 2016. Legal marijuana sales hit $9.7 billion in sales in 2017 (excluding Cali), and it won’t plateau for quite a long time yet!
Cannabis is the Next Retail Renaissance. The tide has seriously turned on pot and weed. With the entry of Millennials and the explosion of vape retail stores, cannabis is seriously next. Actually, recreational pot usage is less controversial than ever, with at least 61% of Americans in support.
Legal marijuana could soon be a bigger market than soda
So let’s be honest, retail is being squeezed by a Middle class has is increasingly becoming a discount-native shopping generation. Meanwhile the gains in retail are mostly in high-end retail.
Marijuana Hits the Mainstream
- Legal marijuana is set to hit $75 billion in sales by 2030, according to a note from analysts at the investment bank Cowen.
- That’s 10x growth of the retail market in a little over a decade.
- So ‘420’ is the to retail, what Netflix is to video streaming, and will likely eclipse the likes of Coke and Pepsi, because put simply Soda is declining.
Weed it turns out has a lot of health benefits.
Pot contains cannabidiol, or CBD, a chemical that is not responsible for getting you high but is thought to be responsible for many of marijuana’s therapeutic effects. We often think of Cannabis as a pain relief agent, and for good reason.
Legal marijuana is already starting to impact alcohol sales as well. Alcohol and Soda, aren’t exactly good for us. So Cannabis, might be making us go green, in a way we altogether didn’t realize.
Cannabis Tax Windfall
Cannabis is the Next Retail Renaissance .The industry is expected to generate $17.5 billion in tax revenue by 2030. It will help the Cannabis retail sector show incredible growth with independent small businesses benefiting from this on a local level in several states and in Canada in late 2018 and 2019.
That’s not to say that Marijuana is not without it’s peculiar characteristics: (According to Business Insider)
- Marijuana may also interfere with how you form memories.
- And you’ll probably get the munchies.
- Oh, and Marijuana can make you feel good.
- Weed can also turn your eyes red.
- It may also mess with your sense of balance.
Sound dangerous yet?
- It can distort your sense of time. Yikes, be careful about that one!
- In the short term, it can also make your heart race. (no way!)
- At your own risk, in some people, weed could increase the risk of depression.
- Ever wonder why you Grandma liked it? Pain relief could include the discomfort of arthritis.
The Cali Cannabis Situation
California, where recreational marijuana sales began on January 1, 2018. That state’s market is predicted to hit $5.1 billion in sales by the end of 2019, outpacing beer sales. Millennials are going green, and the world will never be the same, in more ways than one.
The sale of recreational cannabis in Canada, launches as of August, 2018. Cannabis is becoming legal in more and more U.S. states:
A 2017 Gallup poll showed that 64% of Americans support legalization.
More than half of us have tried it and they are quite a few daily users. It’s likely to become as ubiquitous as coffee, the way it is going. How is that for a futurist’s prediction!
Marijuana enthusiasts did indeed light up on April 20, a marijuana holiday also known as 420. You may have noted the hashtag “420” was trending on various social media platforms such as Twitter and Instagram.
However like Vape, in some places Cannabis is still in regulatory disarray. Marijuana is still considered an illegal, Schedule I substance by the federal government, and thus many plant-touching businesses don’t have access to traditional banks so can’t open lines of credit. Different states and countries can have VERY different rules. But that’s not to say that young people are any less for it. In retail, the consumer always wins in the end.
Many independent retailers and bigger firms see the huge opportunity. If you want to be a retail entreprenurs, you would be crazy not to choose a product that is going to see as much growth in the next ten years as Cannabis. The CBC recently covered this:
So if you are lucky and happen to live in one of the States where recreational Cannabis is legal, what exactly should you expect? This by CNBC:
The Greener Fields are Here
Nine states and Washington, DC, have legalized marijuana for recreational use — no doctor’s letter required — for adults over the age of 21. Medical marijuana is legal in another 29 states.
Marijuana prohibition began 80 years ago when the federal government put a ban on the sale, cultivation, and use of the cannabis plant. It remains illegal on the federal level. But all it takes is a few generation, and things finally start to shift. Just as retail is showing some struggles for the mid-markets with wealth bifurcation becoming an increasing issue, Cannabis could amount to a retail renaissance.
So what’s next for cannabis retail? So to put it mildly, First, I think we’re all understanding at this point the fact that the legal cannabis market is growing quickly with no intention to slow down.
Legal marijuana sales exploded to $9.7 billion in North America in 2017, according to a report from Arcview Market Research and BDS Analytics. That represents a 33% increase over 2016. (Business Insider)
If retail ever needed a “feel good” story it would be this. In January, 2018, In January, Vermont became the first state to legalize marijuana through the legislature, rather than a ballot initiative, when the governor signed the bill into law.
Changing How Young People Socialize
The increase of Cannabis growth will also be fueled by E-commerce adoption. It’s expected the legal marijuana market will reach $24.5 billion in sales — a 28% annual compound growth rate — by 2021, as more state-legal markets come online. So as Soda and Alcohol consumption deceases (so much for beer and Football), going green does increase eventually catching up.
In states that have legalized cannabis, binge-drinking rates have fallen 9% below the national average, so in terms of healthy policy, this could actually be a good thing.
Silver Economy will Fuel Going Green
But that’s not the entire story. Research also points to a funny phenomena that is counter-intuitive, but makes sense the more you think about it. The market for marijuana will primarily be led by older consumers, as people 55 and over are the fastest-growing segment of marijuana shoppers. This means GenX will be spending more here since young people may have less discretionary income for it.
This is leading to dozens if not hundreds of cannabis retail startups getting skin into the game. Cannabis retailers also need to know about receipt regulations.
The Next Age of Retail Therapy is Pot
We have some very strong signs that Cannabis retail is the next big thing, that Pot is one of the saviors of retail in the 2020s.
The World is Changing Bro
Pot dispensaries, oh yeah, around 1,000 in a city like Toronto alone. Average transactions size, about $50.00. Even wine drinkers are expected to switch to Weed, no calories baby!
The vote to go green will spread to more states.
Cannabis is Good for Local Small Businesses
Cannabis is the Next Retail Renaissance. What’s beautiful is this isn’t only bringing people together but giving a great opportunity to independent retailers to earn a living and boost local economies and the small business sector.
Once an offensive smell of teenagers. Now, no more.
Cannabis will be the ‘Crypto of Retail’ in the 2020s
I’d even go so far to say, Cannabis is the crypto of retail. Which sounds funny now as Cannabis stocks are high, but new regulations in California could spread to other states.
The Cali Bill was recently approved in late April, 2018. Senate Bill 930, which would allow marijuana businesses to write special checks to pay some of their businesses expenses. Though with new things, come weirdly painful regulations. In some places, Cannabis retailers may have to pay a lot more to open shop.
The Cannabis Sector will Lead to More Jobs
The transition to the Green Retail 420 Renaissance may take some time. To put it into context, buying pot in Ontario in 2018 will be like buying booze in 1928! That’s the modern world, we can over-regulate grass but cannot hold a candle to regulating algorithms and data-privacy.
The training of cannabis workers is starting and it could create a lot of jobs. The Cannabis Retail renaissance will also give a boost to printer companies such as Star Micronics. There are already specialized POS solutions for Cannabis retail such as GreenBits. The variety of Cannabis based products will also be incredible.
We’re talking about vapes, oils, edibles, topicals, sprays — all of that stuff is coming, and as science catches up to marijuana, you’ll see more and more of those end products.
Cannabis retail gives a whole new meaning to the green economy. The funny thing is we’ll actually be healthier for it, both as consumers and for small businesses.