Cannabis can play an important role in the economy of a state, as evidenced by Denver’s $587 million sales in 2017 alone. Local cannabis dispensaries and vape shops selling cannabis vaporizers and other vaping devices, are generating billions of dollars every year, helping in the progression of the state. While marijuana has a great impact among recreational and medical cannabis users, the cannabis industry continuously proves its worth with the $377 million annual total retail sales in Denver alone. There was a 20% increase in marijuana sales or about $44 million in 2017. The money that Denver gets from the cannabis industry is used in drug education and enforcement of cannabis laws. Not only that, it is used to pay for affordable housing, maintenance services, and opioid intervention.
How Cannabis Influences a State’s Progression
According to Cowen, an investment and banking institution, legal cannabis is set to reach $75 billion in total sales by the year 2030. At the moment, legal cannabis already puts a pressure on the sales of alcohol, wherein drinking rates show to decline, with 9% decline below the national average and about 11% below the states not allowing the sale of recreational cannabis. The average binge drinking among adults is 13% which is fewer as compared to states without legal recreational cannabis. So far, alcohol sales is far higher than cannabis sales with a total sales of $210 billion in 2017.
Moreover, the cannabis industry could possibly eclipse the sales of soda. There are many promising results that marijuana offers to the economy, and experts say that it could possibly exceed the soda and alcohol industries in the future. Soda sales of one of the biggest soda companies hit low sales in 2016. We can expect more pressure on alcohol and soda sales with the expansion of cannabis. Currently, there are 9 states allowing the sale and consumption of cannabis which represent the United States’ almost a quarter of its population. In addition, the cannabis industry is forecast to generate a tax revenue of $17.5 billion by 2030. In 2017, the legal cannabis sales have reached $9.7 billion and it does not include yet the California industry where the sales of recreational cannabis started last January 1, 2018. By the end of 2019, the predicted state market is $5.1 billion.
In Oregon, $108.6 million was collected in local and states taxes from January 4, 2016 to August 31, 2017. Oregon placed $9.56 million for the start-up cost of Oregon Liquor Control Commission to regulate the industry as well as a portion towards the Department of Revenue for their effective tax collection operation. The rest of the collected amount went to fund state school and universities ($34 million or 40%), mental health, drug services, and alcoholism rehabilitation ($17 million or 20%), state police ($12.75 million or 15%), and the Health Authority ($4.25 million or 5%). According to Anthony Johnson, Measure 91 chief petitioner, the amount of collected tax even exceeded the early projections of cannabis supporters.
Vaping and Cannabis Synergistic Economic Effects
While there are still a lot of challenges that the marijuana cannabis market is facing, the vaping industry helps the marijuana industry in terms of promotion and consumption. Cannabis is still considered a Schedule I substance or illegal by the federal government but vaping provides alternative options aside from dry herbs such as CBD oils which are deemed legally sold and consumed in the United States from cannabis and hemp. Despite this, a vape or vaporizer is preferred by medical cannabis users over traditional smoking because it is cleaner and safer, gaining support from medical groups and cannabis advocates, as well as government officials and legislators.
There is a great economic impact brought about by the discovery of vapes and vaporizers and cannabis. These two industries are multi-billion, not only affecting the United States, but across the world. The powerful marketing strategies of vaping manufacturers and the loud shout for cannabis legalization have made the governments think about regulating and implementing applicable courses of of actions to accommodate suggestions, requests, and reforms when it comes to vaping and cannabis. The highest-valued cannabis companies of 2017 have revealed the two important insights about the marijuana booming industry. These include the startup that runs cannabis dispensaries in achieving the first one billion dollars in the United States, and the hedge fund that focused on cannabis. In fact, a New York fund manager decided to move to Canada where he began his first ever cannabis company which was listed on the US major stock exchange.
By highlighting the best features of vaping devices with the health benefits of cannabis, the awareness and perception of the public is gradually changed. There is a greater acceptance of vaping over smoking, and cannabis or opioids and other pain medications. People are always looking for better or healthier options without giving up the habit. A vape or vaporizer can help and so as marijuana without the side effects of traditional medicine. With the advancement of technology, and as people have a more open mind, cannabis and vaping will surely hit greater revenues across the globe. The results are already reaching far beyond we originally expected, so it’s not surprising why there are many businesses proliferating aligned with these two industries. They are a nation’s boomerang when it comes to economic progression with proper regulation and implementation of governing policies and bylaws.
With the statistics mentioned above, it only goes to show that the legalization and regulation of cannabis can definitely help in generating more revenue for varying important government services. Furthermore, the vaping industry helps the cannabis market to get adequate exposure or promotion through the use of different e-cigarettes, vaporizers, mods, vapes, and other vaping devices. We cannot deny the fact that cannabis and vaping are major influencers in our economy, opening new horizons to manufacturers and entrepreneurs, and more importantly to the better health and quality of life of citizens.