The marijuana industry has grown significantly over the years and has reached a market cap that couldn’t have been predicted before. It is one of the most progressive markets in the US, and the wins this industry is continually getting give a glimpse of the projected growth forecasts. With each state that has marijuana legalized, the entire industry gains some overall financial growth. As a result, this industry has scored $5 billion due to legalization wins through state legislators in 2021 only. Here is what contributed to this massive growth in marijuana packaging and smell proof bags.
Connecticut Marijuana Laws
Connecticut is one of the states that drove the revenue margins for the US because of this state’s constituents’ warm welcome for marijuana legalization. There have been some major reforms in the marijuana laws by state, including those that impact the state of Connecticut. Most of these reforms impacted the personal use of marijuana aside from medical purpose usage.
For example, cannabis products such as the variety of CBD edibles, tinctures, and so forth have been allowed to be sold at a retail level. Although selling CBD products seems to be the least harmless way of using cannabis, the state officials have recognized some risks.
The risks include mixing or extracting CBD in a dangerous or harmful way and to manufacture or sell these products, you need a license. On the other hand, anyone over the age of 21 years old can start growing their cannabis at home. Doing this does not require a license which is a relaxed regulation since before growing cannabis in a personal capacity was banned. Additionally, the minimum amount of marijuana you can carry on your person is 1.5 oz. What is the economic impact of these significant changes? The annual sales figures have been projected to reach $750 million in this state only within the next four years.
New York Marijuana Laws
New York state has also become one of the most progressive economic hubs for marijuana retail and product manufacturing. Despite this state’s pioneering in easing some restrictions pertinent to marijuana laws, some bans remained and only got lifted recently. The economic growth experienced by New York is out of this world, and predictions derived therein and future market dynamics show greener pastures ahead. For example, in 4 years from now, the New York state marijuana market has been projected to reach an annual sales figure of $2.1 billion.
Although there might not be state laws that have been passed regarding retailing marijuana or products made from it, some provisions have been made. Local governments can have a referendum to have adult-use stores. These stores can then be designated to serve as marijuana dispensaries to sell the regulated substances within the respective local government frameworks.
Taxes that have been collected using these local referendums have made a significant difference in boosting government budgets. At the same time, direct and indirect employment has resulted from some New York state districts allowing the sale of marijuana. One of the major benefits of these relaxed regulations is that Native American communities can enter the recreational marijuana market through agreements with regulating authorities.
New Mexico Marijuana Laws
New Mexico can be regarded as one of the most open-minded states regarding the legality of cannabis and products made from marijuana. The legality of cannabis has been relaxed to a great extent in this state, which has helped businesses see their annual turnover growing.
Most of these rules seem pretty standard, especially those relating to age restrictions and retailing of marijuana. However, one that stands out is that you can possess a maximum of 2oz of marijuana concealed. If you have more than 2oz on your person but less than 8oz, this can just give you a misdemeanor charge. However, these restrictions are very generous considering other states, and this promotes the economic activity observed from this market.
The marijuana market seems to be looking up in this industry because projects to designate certain areas to smoke marijuana in public are in the pipeline. These developments are consistent with the significant growth that is forecasted in New Mexico. The annual sales of marijuana in New Mexico have been predicted to reach $425 million within the next four years. Local governments can impose certain restrictions on the recreational use of marijuana in New Mexico. However, they can’t completely ban this activity.
Virginia Marijuana Laws
Virginia has been projected to have annual sales of about 1.3 billion, which is a figure that makes up a fifth of the current annual revenue volumes. The state has some pretty strict restrictions, but this does not hinder the profitability of this market. Restrictions imposed in this state are solely aimed at maintaining total oversight over this market, especially since it can get out of control easily.
With that in mind, the legislative authorities have approved only 400 retail stores, 60 manufacturing facilities, 25 wholesalers, and 450 cultivators. All of these entities should be fully licensed and regulated under the relevant policies and procedures. The licensing commission that will be issuing out licenses is the Social Equity Licenses.
Whether or not a license gets granted is left up to this board’s discretion. Additional regulations for the cannabis industry include a 21% tax on top of state sales tax and local government taxes, which can add up to 9%. The benefit the successful applicants can enjoy is the low-interest loan provision when raising capital to start operating. Overall, this market can play a very important role in Virginia to boost economic activities and collect more taxes for government budgets.
Marijuana legalization has gone a long way in improving the profit margins and annual revenue figures for this industry. More U.S states are starting to relax restrictions on marijuana and the forecasted growth within the next four years. These four states have been evidence enough to be a testament to how profitable this industry can be.