Article by TJ Branfalt Jr, Ganjapreneur
The legal cannabis industry could reach $50 billion by 2026, according to a 10 Cowen & Co. analysis. That figure expands the legal market more than eight times its current size.
“Cannabis prohibition has been in place for 80-plus years, but the tides are clearly turning,” the authors concluded, according to a Bloomberg report.
According to the analysis, Big Tobacco is likely to enter the legal cannabis market; however, the analysts envision they will enter on the vapor technology side. Additionally, Big Tobacco companies have experience navigating complex regulatory frameworks, which would give them a leg up on smaller companies with less experience. The analysts predict that tobacco companies will constitute about one-fifth of the cannabis industry by 2036, adding more than 20 percent to their revenues.
Analysts note that legal cannabis is more foe than friend to alcohol-makers, noting that over the last five years alcohol consumption has declined, while cannabis use has risen — especially among men. The number of cannabis users who drank decreased, while the number of drinkers who also used cannabis increased, according to the report.