Many recreational cannabis users are delighted that cannabis legalization is now in nine states and medical cannabis is in thirty states. There are 5 top industries affected by cannabis legalization. As it is now is, the 2014 Farm Bill is being reviewed and updated by Congress to de-schedule hemp. It is to the advantage of many industries and companies to jump onboard as they will be affected by the increase in cannabis legalization, especially since this will be on the ballot for the 2018 midterm election. If not these industries and companies will be left behind.
There are some industries and companies that will find the change works to their advantage. Others might find themselves in a situation where they have to make up for lost profits, which are being funneled into other related industries and companies. Let us look at the industries that are most impacted by the increase in cannabis legalization.
The Pharmaceutical Industry
There are many people who have come to realize the benefits of cannabis as it relates to alternative medicine. However, many pharmaceutical companies have no interest in cannabis legalization because it will serve to put them out of business. Medical cannabis is now estimated to have the potential of siphoning more than four billion in profits away from the drug industry. And for this reason, the industry is fearful that cannabis will take over soon, especially since so many states are piling on to the legalization wagon. Therefore, the pharmaceutical industry is not in any hurry to sign up for cannabis legalization.
Cannabis is said to be helpful as a treatment to medical conditions such as anxiety, seizures, depression, chronic pain, insomnia and neurological conditions. Moreover, if a medical patient were to use cannabis instead of a prescribed drug and found it to be more helpful, then this would not sit well with the pharmaceutical companies. This would be taking away their business. As cannabis becomes legalized in more states, it is safe to say that physicians will have less drugs to prescribe as painkillers and such.
The Textile Industry
One of the main advantages of hemp is textile products or fabrics. For the textile industry that produces cotton using a non-organic process, there should be nervousness about how legal hemp is rising up in the industrial environment. Hemp could be the dream that designers and clothing manufacturers are seeking as an alternative to cotton that has not gone through the organic process. Moreover, cotton is expensive to grow; much more so than cannabis.
And if the cotton is not grown using an organic process, it means the grower has to find fifty percent more water to use in the growth process. In comparison to cotton, hemp is a better option. In fact, it is a nice rotation crop for farmers who already grow cotton.
The Alcohol Industry
The alcohol industry is doing well ever since it was legalized for the benefit of those who are looking for a way to feel good. However, booze, if overused can cause damage to your health in comparison to cannabis. Because cannabis is so beneficial to a person’s health, the alcohol industry has a lot to fear when it comes to choices and profits.
Most people with health problems would prefer to choose cannabis over alcohol. But, if the alcohol industry has its way due to the many lobbyists in Washington, it would always take precedence over cannabis legalization, but only for now. For one, alcohol when used over time can cause your health to deteriorate, but there is no evidence that cannabis will do the same.
The Banking and Finance Industry
In the Banking and Finance industry, the cannabis market has an expectation of earning approximately fifty seven million within the next nine years (in the year 2027). Not every industry wants to watch cannabis take a fall. Banks are having a hard time offering financing to cannabis business owners because of the stance that the federal government has taken.
The feds don’t want to give banks the ‘go ahead’ to provide loans and open accounts for cannabis business owners. Until Schedule 1 drug is adjusted, it is going to be difficult to find financing unless you know exactly where to go.
The tourism industry is rampant in places like Colorado, Seattle and California. In the same way that alcohol is interwoven into the tourism industry so is cannabis. Since cannabis legalization took place in the state of Colorado, it has given the state millions of dollars in revenue. In fact, the state of Colorado received $86 million in 2017 revenue from out of state visitors alone.