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Another big boost for the US Cannabis industry

Leading senate democrates are planning to push federal legalization forward.

•• 2 Min
Another big boost for the US Cannabis industry

A few years ago, analysts predicted tough times for the cannabis industry as cash and funding quickly dried up. Then came the pandemic and sales skyrocketed. Now there is another big catalyst. As the pandemic subsides with the launch of the coronavirus vaccine, the cannabis industry could get another boost. In a joint statement, three leading Senate Democrats announced a push to pass far-reaching legislation later this year that would end marijuana bans at the federal level. Senate Majority Leader Chuck Schumer, Senator Cory Booker from New Jersey and Ron Wyden from Oregon said they would publish a draft "how best to legalize and regulate cannabis and the cannabis trade in post-prohibition America". The Senators stressed that passing the legislation would be a priority for the Senate. Details were not immediately available, but three Democrats said they would publish a proposal for legalization in the next few weeks that would include measures to "protect public health" as well as "responsible taxes and regulations". The reform would also provide so-called restorative justice for people convicted of weed-related crimes. "As states continue to legalize marijuana, we must also take steps to straighten up people who were treated unfairly in the war on drugs," the senators wrote. In the US, 68% of Americans are currently in favor of legalizing marijuana, a record high, while the legal cannabis industry market topped $ 13.5 billion in 2019 and topped $ 19.7 billion last year. In its new study, New Frontier Data predicts US cannabis sales will reach $ 35 billion by 2025. Fifteen states and Washington, D.C., have now legalized recreational marijuana for adults over the age of 21. Thirty-four states currently allow the medical use of marijuana, while 15 states have no laws that allow marijuana. A few other states were also preparing to legalize last year; however, the pandemic has drawn bureaucratic attention and social distancing has hampered any voting. Since the beginning of the pandemic, cannabis product sales have skyrocketed due to various lockdowns and house arrest orders as the industry has been classified as an "essential service". Sales also boomed during the holiday seasons. Jane Technologies, an online cannabis marketplace, saw online sales jump 241% year over year on Green Wednesday 2020. Overall, online sales in 2020 increased by an average of 271% compared to 2019. According to Green Entrepreneur, companies sold $ 400 million worth of cannabis products in the week leading up to July 4, 2020 - a 60% increase from the weekly average.  Labor Day is also a big day in the cannabis industry, with sales exceeding a quarter of a billion dollars in 2020, up 23% year over year. The holiday season also exceeded expectations, generating $ 427 million. Now all eyes will be on how cannabis stocks might be able to capitalize on this tailwind from the Biden administration.

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