Total sales of marijuana in the US are estimated to be worth $50 billion when black market sales are taken into account. Marijuana is a lucrative business. An acre of marijuana is estimated to be worth in the region of $1 million. The next profitable crop is wine grapes, coming in at $200,000. Many farmers are making the switch from traditional plants to cannabis, and with good reason. With both recreational and medical marijuana set to become a reality in many more states, there are huge profits to be made. It is an up and coming industry that is going to provide a massive boost for local economies.
The standard use of marijuana is for inhalation through a joint or vaporizer. But cannabis is one of the most versatile plants on the planet, and it can be used for a variety of different purposes. One area which entrepreneurs are eyeing up is the potential market of cannabis edibles. A cannabis edible is simply food with ground cannabis thrown in. Popular make at home cannabis edibles include cannabis caramel sauce, weed firecrackers, weed muffins, weed quesadillas and pot brownies. Cannabis edibles has different effects that simply inhaling cannabis. The effects take longer to come on, so there is slightly more of a risk when ingesting marijuana as opposed to smoking it. There is a whole industry gearing up around cannabis edibles, with cannabis gourmet foods and new recipes. Soon there will be cannabis infused edibles on menus in every restaurant where cannabis is legal. It will be as commonplace as beer, wine and cigarettes. What this means is that there is massive profit potential in cannabis edibles, with marijuana restaurants and shops opening up. There are even marijuana themed weddings taking place, with marijuana bars and gourmet marijuana treats at every table.
Marijuana Edibles for Entrepreneurs.
Last year in California, consumers ate over $180 million worth of cannabis edibles. This is 10% of the total cannabis sales in California. And on January the first, 2018, it will be legal for businesses in California to sell recreational marijuana. Total sales of cannabis in California are estimated to be in the region of $5 billion when recreational marijuana becomes legal next year. This number is far more than the sales of Oregon and California combined.
It is not merely California that is seeing a huge increase in the consumption of cannabis edibles. The sale of cannabis edibles increased 121% in Washington last year. Eating cannabis is becoming as popular as smoking it, though not quite yet. Sales in Colorado tripled in the two years following recreational marijuana legalization. A possible explanation for this is that there are people who do not like to smoke. But marijuana edibles can reach this market while marijuana on its own cannot. Edibles are also priced higher than marijuana alone, meaning that they actually account for far more of the profit of marijuana dispensaries.
From an entrepreneurial perspective, the bottom line is that marijuana edibles are far more appealing than marijuana. There are already a lot of expert marijuana cultivators, dispensaries and distributors. It makes far more sense to invest in an untapped market with more upside, less risk and an industry that is set to explode. It could also be tied in with existing businesses. Entrepreneurs who already own restaurants can add a select variety of marijuana edibles to the menu. Or they can simply establish their own brand reputation as producers of the finest quality marijuana treats. The edibles market was estimated to be worth $7.2 billion in 2016, and is set to grow at a staggering 25% annually.
The current edibles market is not yet developed. Most of the edibles available come in the form of candies. And they are bought in marijuana dispensaries, which does not provide the best experience. It is an area that has yet been explored or tapped and there is much that can be done. Soon there will be brands of cannabis edibles. The Starbucks/McDonalds/Coca Cola of the marijuana world will appear. The market is massive and it will be interesting to see which entrepreneurs come out on top. There will soon be a massive market for high end cannabis from online shops, commercial outlets and restaurants.
Nowhere But Up
Millionaires are going to be made from the cannabis edibles industry. The market is there and set to grow, but the merchants and quality suppliers of cannabis edibles is not. And neither is the infrastructure. Expect to see the cannabis edibles market explode in the next 5 years. As more states legalize cannabis use it can go nowhere but up. And for entrepreneurs, it makes a lot more sense to invest in edibles than pure marijuana at this stage.