Over the next decade, investors will struggle to find a more impressive growth opportunity than the rise of legal cannabis. If investment bank Stifel proves accurate with its call for $200 billion in global annual weed sales in a decade's time, the industry would be on track for a compound annual growth rate of almost 34%. That makes marijuana hard to ignore.
Unfortunately, it's made the rise of cannabis hard to ignore from a business perspective, too, especially in the United States. The U.S. is projected to generate between a third and a half of worldwide weed sales in a decade. With such incredible growth expected, growers have come out of the woodwork in established recreationally legal U.S. states for their piece of the green rush.
The problem is that established adult-use-legal U.S. states, such as Colorado, Washington, and Oregon, have encountered serious oversupply issues as a result of everyone wanting in on cannabis.