Marijuana as an investment class began to pick up steam in 2014. Interest in the sector continued to increase with the increased possibility of more and more states legalizing the use of medical marijuana.
As of now, 29 U.S. states and Washington, D.C., have legitimized the use of medical marijuana, although the federal government has yet to approve its usage, citing limited clinical trials to prove the drug’s medicinal value. Washington, D.C. and eight states have approved recreational marijuana.
A Lucrative Market Opportunity
The investment promise pot holds is backed by an enormous market opportunity. Marijuana sales in North America totaled $7.3 billion in 2016, according to Arcview Market Research/BDS Analytics. That number is expected to grow 33 percent to $9.7 billion in 2017. By 2021, sales are estimated to soar to $24.5 billion, representing a compounded annual growth rate of 28 percent.