Market Overview

Viridian's President: If Federally Legal, The U.S. Cannabis Market Could Surpass $100 Billion Per Year

Share:
Viridian's President: If Federally Legal, The U.S. Cannabis Market Could Surpass $100 Billion Per Year
Related
Rapper 'The Game' Talks About His Cannabis Venture: 'Setting The Standard For Quality Medicine, Patient Care'
ArcView's Troy Dayton Explains Why The Cannabis Industry Will Thrive Even If Trump Cracks Down On Marijuana
Related STZ
Household Names JPMorgan Initiated Ratings On This Week
The Story Of Bell's Brewery: Larry Bell Grows From Stoner Beer Baron To Craft Beer Icon

Viridian Capital Advisors is one of the world’s main financial and strategic advisory firms for the cannabis industry. Every week, the company publishes two reports, one tracking the performance of its Cannabis Stock Index and another tracking the most recent investment and M&A activity in the marijuana industry — which recently surpassed $1 billion.

Talking about the most recent results, the company’s founder and president, Scott Greiper, shared a rough estimate of the size of the U.S. cannabis market with Benzinga.

Considering All Verticals

Some of the most cited appraisals come from Cowen & Co. and the ArcView Group, both of which expect the legal marijuana market to hit $50 billion by 2026. However, Greiper noted, most estimates are not taking into account all of the verticals and ancillaries, which could boost companies like Constellation Brands, Inc. (NYSE: STZ), Innovative Industrial Properties Inc (NYSE: IIPR), VAPE HLDGS INC COM USD0.00001 (OTC: VAPE), Hemp Inc (OTC: HEMP), and even Microsoft Corporation (NASDAQ: MSFT) and Philip Morris International Inc. (NYSE: PM).

“If you want to have just a small inkling of how big the U.S. [cannabis] market place could be in a fully legal national marketplace, just look up what’s happening in Canada since the Trudeau administration came in and rolled out,” Greiper voiced. “They have about as many users as California does in a single state up in Canada; so, multiply that by 50 states [...] This gets to the higher end projections that we’ve been seeing in the industry. It’s not a $50 billion market [which is] the amount of cannabis bought every year in the black market.”

“When you consider all of the new users, medical users [...] the fastest growing demographic of consumers of cannabis today are 50 and 60 year olds,” he explained. “The market size, all the ancillary services that come in when states legalize: the software, the ERP systems, the security providers, the real estate brokers [...] This is probably in excess of $100 billion annual in the States, in a federally legal marketplace.”

Posted-In: Biotech Long Ideas Politics Topics Top Stories Tech Trading Ideas Interview Best of Benzinga

 

Related Articles (HEMP + IIPR)

View Comments and Join the Discussion!