Industry Estimates Are Increasing But Still Understated

Over the past year, we have heard statements such as “the marijuana industry is going to be big” over and over again. The marijuana industry is not going to be big. The marijuana industry IS big. Recent projections from Marijuana Business Daily value the legal cannabis industry at $11 billion. They project that the cannabis industry will be a $30 billion industry by 2019. This is much higher than their previous estimates.

Marijuana Business Daily’s estimates are no longer based purely off of the sale of legal marijuana (recreational and medical). They valued the cannabis industry through performing sum of the parts analysis on cultivation operations, processing businesses, and ancillary businesses. Their estimates, however, are understated and incomplete.

Estimates do not account for the hemp and pharmaceutical industry

Technical420 developed a proprietary model that projects the cannabis industry to be a $500 billion industry by 2030. Each metric used in the model was tested and retested to ensure that there is a strong correlation between the variable and market growth. Technical420 analysts were able to identify a number of key metrics that influenced industry growth. Our analysts measured hundreds of metrics and identified and ranked those which influenced market growth.

The cannabis industry is much greater than the growing, processing, and selling of marijuana. We also measured the cannabis industry by performing sum of its parts, but our estimates are based on a sector-by-sector analysis in which four unrelated sectors and their subsectors were measured:

• Legal marijuana sales (medical and recreational)
• Industrial Hemp
• Pharmaceutical
• Ancillary businesses.

Technical420 analysts dug deeper into its analysis and identified various subsectors within these unrelated sectors. Each subsector was given a rating based on its composition and market size. Our analysts then went on to identify the catalysts, risks, and best investments (stock specific) per subsector.

A $500 Billion dollar industry

The birth of the cannabis industry has created opportunities in a variety of new industries, which include: pharmaceutical, industrial hemp, ancillary, real estate, banking, and much more. One of the biggest positive externalities associated with the development of the cannabis industry is the birth of the industrial hemp industry and the expansion of the pharmaceutical sector.

The industrial hemp industry has the potential to change the world and be a trillion dollar industry. Hemp can be used to make paper, clothing, food, building materials, nutritional supplements, biodegradable plastics, and even oil that can be used in your car today! We developed a model that uses conservative estimates and projects the industrial hemp industry to be a $50 billion industry by 2026 and a $100 billion industry by 2030.

The pharmaceutical industry has been and will continue to be one greatest beneficiaries of the growth in the cannabis industry. The sector is comprised of the most credible cannabis companies; some of which trade on the NASDAQ.

These pharmaceutical companies are focused on developing treatments for patients who suffer from cancer, Multiple Sclerosis, Dravet’s Syndrome, PTSD, and many other debilitating diseases. Hundreds of millions of people around the world suffer from these diseases. The development of FDA approved treatments is beneficial to the patient and their families, as well as to the companies. According to our projections the pharmaceutical industry will be a $100 billion dollar industry by 2026 and $500 billion dollar industry by 2030. Although these numbers seem huge the demand for treatments for these diseases is considerable.

Knowledge is power

Technical420 has published the first edition of its comprehensive industry report. The report is the first of its kind. It provides you with an in depth breakdown of the industry, highlighting where it has come from, where it is going, its growth potential, and the companies that are best positioned to capitalize from marijuana reform!

Click here to purchase the report!

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Michael Berger is Managing Partner of StoneBridge Partners, LLC and Founder of Technical420.com. Prior to entering the cannabis industry, Michael was an Equity Research Analyst at Raymond James Financial covering the Energy Sector. Michael has been featured in publications such as The Street, Bloomberg, US Money News, and hosts various cannabis events across North America.

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