While the MORE bill will definitely expand cannabis markets in the US, Weedmaps CEO Chris Beals believes a bigger hurdle is in the 37 states where the substance is already legal for adult use. “The biggest problem with legalized cannabis markets … is that there just are not enough licenses,” Beals told Yahoo Finance Live (video above), adding that consumers still choose to buy illegally from legal ones by four -a ratio. “ As a result, “much of the harm done is not due to federal illegality,” Beals said. you drive too far. or there is not strong enough competition in pricing or product selection. “
NIMBYism limits the growth of the marijuana market
Cannabis is one of the fastest growing industries in the US Last year, the industry generated sales of $ 25 billion – up 43% from 2020 – and the US cannabis market is projected to reach $ 65 billion by 2030. The industry is also benefiting from growing popular support among Americans: 68% believe the pot should be legal, according to the latest Gallup poll, and 18% of Americans now admit to using it, a percentage that is higher than 10% in 2005. Congress responds to a degree: In addition to the passage of the MORE bill by Parliament, the Senate has drafted its own cannabis law: the Cannabis Management and Opportunity Act. “Overall, Congress is signaling that the end of the federal cannabis ban is approaching,” said Stephen Hawkins, chief executive of the US Cannabis Council. The story goes on Beals agreed – with one caveat: “While I believe the federal government is part of it – it will undoubtedly help – the states that issue more licenses for cannabis companies will do much more.” Activists from DC Marijuana Justice (DCJM) waving flags during a rally asking Congress to pass cannabis reform legislation in the US Capitol East Lawn in Washington, DC on October 8, 2019 (Photo by Olivier Douliery / AFP ) (Photo by OLIVIER DOULIERY / AFP via Getty Images) He explained that the development of the industry remains dependent on licensing at the state level. “The biggest reason is local NIMBYism,” Beals said. “Most states that have legitimized it have left it to local governments, which tend to move slower and more conservatively.” (NIMBYism, derived from the nickname “Not In My Backyard”, refers to locals who oppose development projects in their area.) The Beals cited the legal cannabis market in California as an example. “Although California was legalized in 2016, less than 25% of cities and counties allowed legal cannabis businesses to open there,” he said. “I think the interesting thing is that New York and New Jersey are learning some of that,” Beals continued. In New York, about 50% of cities and counties have chosen to allow cannabis sales, and people mourn saying, “Well, it’s going to be an anemic market.” People forget that California is about “22%, 23%. Newer markets will stop the tide.” Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter: @daniromerotv Read the latest financial and business news from Yahoo Finance Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard and LinkedIn
