California is one the latest states to legalize recreational marijuana. With Proposition 64 going into full effect on Jan. 1, 2018, we could be one step closer to new federal regulations, which would make investment opportunities in the marijuana industry more accessible to everyone.
Cannabis-related businesses constitute one of the fastest growing industries in the United States. The medical marijuana market alone was worth $4.7 billion in 2016 and is expected to grow to $13.3 billion by 2020. Meanwhile, adult recreational sales amounted to $2.6 billion in 2016 and could reach $11.2 billion by 2020. With promising revenue and expansion across states, industries and product offerings, the marijuana industry has become an attractive opportunity for investors.
But until now, investor participation in the legal cannabis market has been relatively small. Will that change? And, if so, how can investors get in on the ground floor?