Legal Marijuana. This term is a bit complicated, as cannabis is still a Schedule I substance with ‘no medicinal value’ according to the federal government. However, a number of states have decriminalized or legalized the sale and use of medical and or recreational marijuana. Federal laws technically trump state laws, thus making all marijuana illegal, but these discrepancies have resulted in a massive wave of legal businesses opening to provide an eager community with cannabis-based products in what some people have called the ‘Green Rush’.
The Market of Legal Cannabis Sales
American cannabis sales produced an estimated $1.5 billion in 2013 according to Vice. Data records vary, but revenue rose to around $2.7 billion in 2014 and eventually increased to a staggering $6.7 billion in 2016, the same year California entered the market. The growth trend is obvious, particularly as other states entertain legalization to share in the success.
Photo Credit: Cannabis Now Magazine
Financial planning group ArcView Market Research estimates American retail marijuana sales in excess of $21 billion in 2020. This estimate is low relative to a potential $35 billion in 2020 according to The 2014 GreenWave Report. Even if these projections are far too high, the argument is clear: the business potential of American cannabis may soon rival the gross domestic product of entire countries.
How Have the Cannabis Market’s Standards Changed?
Currently, we occupy a period of adjustment, as budding legal industries begin to rub shoulders with the entrenched black market that supplied people with cannabis products before ‘legalization’. As weed enters public supply, the people who form its demand are adjusting their perspectives and raising their expectations. With the curtain of illegality falling from weed, the entire market is now being held accountable to the same regulations as any other business making consumable products.
The thing is, it’s expensive and time-consuming to obey laws, deal with administrations, and abide by other legal implications. Many cosmopolitan operations are reluctant to make the requisite changes to warrant legality, particularly with high tax rates often making legal product more expensive than street purchase. With the rise of large-scale production in cannabis directly, other businesses related to cannabis, but not necessarily selling it, benefit.
How Abstrax's NON-Cannabis Derived Terpenes Fit in the Market
Abstrax finds itself occupying this supportive niche. While our products do not contain cannabis itself, the close association between terpenes and the flagrant inconsistency in the modern marijuana industry could potentially give the wrong impression of our business habits. We conduct our business as a modern institution, adhering to the highest manufacturing standards. Regulation is prioritized, our work is performed under standard operating procedure, and all employees follow careful protocol.
We maintain high criteria concerning product consistency, facility cleanliness, and customer relations. All of our sustainably sourced products are cared for with knowledge and expertise, ensuring correctness and reliability. It is our goal to meet and exceed the hopes of all our customers and clients in matters concerning both our business and theirs.