According to Grand View Research, Inc., the global legal marijuana market size is projected to hit USD 70.6 million by 2028. This represents a compound annual growth rate (CAGR) of 26.7% from 2021 to 2018.
Experts cite an increased awareness of marijuana’s pharmacological applications as the leading factor behind the industry’s enormous growth.
So, if you’ve always harbored intentions of pursuing a business venture in the cannabis industry, this may be the right time to take the plunge. But as an aspiring marijuana investor, there are numerous things to know before dipping your toes into the industry.
Read on as we highlight simple tips to help you get started in the cannabis industry.
Understand What Cannabis Is
Cannabis is a genus of flowering plants which produce several species. The most common cannabis species include Cannabis sativa and Cannabis indica. Others have Cannabis ruderalis and Cannabis hybrid.
Now, you’ll realize that the word cannabis is often used interchangeably with other terms like “marijuana,” “weed,” or “pot.” While these words generally denote the same thing, they may sometimes differ in connotation.
Cannabis is mostly used about the plant in general, especially its therapeutic properties. On the other hand, the terms “marijuana,” “weed,” and “pot” generally refer to recreational cannabis.
Know the Strains
Cannabis, like most therapeutic herbs, exists in multiple strains. It’s prudent to familiarize yourself with these strains, regardless of how you intend to enter the marijuana industry. That’s because each cannabis strain has its signature effects and aroma.
For instance, if planning to become a cannabis grower, you might want to invest in quality exotic strains.
OG Kush is a hybrid strain noted for its uplifting effects. The strain boasts a variety of terpenes that work synergistically to produce a mix of lemony, piney, and spicy aromas.
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Know the Benefits
It’s intuitive to imagine that only cannabis users should understand the plant’s benefits. Nothing can be further from the truth. As an aspiring investor, you’d also do well to know the perks of venturing into the cannabis industry.
First off, marijuana contains numerous health benefits. The plant has been used for years to manage many medical ailments. Examples include arthritis, multiple sclerosis, cancer, endometriosis, diabetes, anxiety, insomnia, epileptic seizures, and acne. Knowing the health benefits of cannabis will help you in packaging your advertising materials. Note that your prospective clients would want to know what they stand to gain from using marijuana before they can order weed-based products from you.
In addition to its health benefits, cannabis is also a staple raw material in the textile industry. Extracts from the plant have been used for years to manufacture clothes, shoes, ropes, canvas, etc. This information is essential for cannabis growers.
Most importantly, the cannabis industry is pretty bullish. So, why not cash in on the gold mine?
Understand the Law
Cannabis may have garnered a positive reputation for its numerous benefits and applications. However, the plant remains illegal in multiple countries worldwide. Therefore, it’s essential to familiarize yourself with your local cannabis laws before setting up a marijuana venture.
In the United States, the passing into law of the 2018 Farm Bill legalized the cultivation, distribution, and sale of hemp products.
Hemp is a cannabis cultivar noted for its high cannabidiol (CBD) and low levels of tetrahydrocannabinol (THC). CBD is the primary non-psychoactive cannabis extract, while THC is marijuana’s main psychotropic chemical. CBD is widely available in medical marijuana products, whereas THC is more popular with recreational cannabis users.
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Choose How to Enter the Industry
There are numerous ways to make your foray into the cannabis industry. Common ones include;
Becoming a Cannabis Grower
This is an excellent option if you consider yourself a green thumb. To excel as a marijuana cultivator, you’ll need to select the right soil type, invest in high-quality seeds, and meet other ideal cannabis growing conditions. The good news is that marijuana is highly resilient and can thrive in different climatic conditions.
Setting Up a Cannabis Processing Plant
Setting up and running a cannabis processing plant can be capital-intensive. You’ll need to invest in high-end manufacturing equipment to process cannabis raw materials into finished products. But if diligently undertaken, this investment option can be ultimately rewarding.
Trading in Cannabis Goods
This is perhaps the most common way people venture into the cannabis industry. There are plenty of marijuana goods to add to your shelf. Notable ones include;
- Smokable products
- Inhalable products, such as cannabis-infused vape juices
- Edible goods like cannabis gummies, candies, and chocolates
- Cannabis-enriched skincare products
- Encapsulated cannabis supplements
- Cannabis tinctures
If you’re looking for a hands-off way to trade marijuana products, you might consider flipping cannabis stocks.
Setting Up an Ancillary Business
There are numerous ancillary services you can offer to cannabis businesses. Examples include;
- Transport and distribution services
- Sales and marketing
- Legal services
- Laboratory testing services
- Cannabis security services
It’s best to set up an ancillary business in your area of expertise.
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Investing in the cannabis industry is one of the most financially viable decisions you can ever make. However, it pays to arm yourself with every information required to excel in the marijuana trade. Hopefully, you can now set up a cannabis venture from the information point.