Marijuana is such a polarizing substance. Like many prescription drugs, it has benefits and also has terrible side effects. Marijuana is expected grow into a $20 billion market in the coming years. That's just in the U.S. alone. Years ago, only a quarter of people wanted to legalize it, and now its about 2/3. According to cannabis research firm ArcView, legal weed sales are expected to grow in North America by 26% a year through 2021. Now, 29 U.S. states allow medical marijuana and 8 allow it for recreational purposes.
California, obviously is a pioneer. It may seem beneficial for the weed industry because it can bring in $1 billion in taxes and other fees. However, that may change. There is not a straightforward limitation to weed farm sizes. There are limitations only on medium-size licenses, meaning other cultivators can create huge farms.
Also, big businesses seem to be dominating, leaving out the small businesses. Essentially, you could have an oligopoly, which may or may not be a good thing. This is similar to the situation with Walmart taking over other stores, and of course, Amazon too. This might be good in that these businesses could promote our economy's growth though, so we'll have to see. We're dealing with something different from what you usually see. This isn't technology, it's a drug.
Also, we all know how California loves to tax its people. You bet there will be some huge taxes of weed in California. Obviously, that doesn't mean investors should just jump up as the weed industry is of course still illegal federally and there aren't "big-name" companies yet that provide stability.
Now comes the hard part: will the recreational weed in California match the prices on the black market? If prices are still too high, then that doesn't really do much for people who can buy weed for so much cheaper. This means big trouble for everyone.
http://www.businessinsider.com/californias-marijuana-industry-may-be-in-deep-trouble-2017-11
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