Just a FYI - As Cannabis Consumption Surges While Alcohol Falls, This Expert Sees A $100B Market Opportunity For Weed
9:55 am ET August 15, 2023 (Benzinga) Print
"Since 2010, cannabis use among ages 21-29 is up 55%, while alcohol use is down 11%. This isn't just a trend, it's a multi-decade growth opportunity." This is the conviction of Aaron Grey of Alliance Global Partners, who recently shed light on the promising future of the cannabis industry at the Benzinga Cannabis Capital Conference held in Miami.
But the cannabis industry isn't the only sector taking note the significant shift in consumer habits over the past decade. "That's not just the cannabis industry noticing; the alcohol industry is noticing, the tobacco industry is noticing," Grey emphasized. Indeed, major players in these industries are starting to pivot. Altria (NYSE: MO), for instance, mentioned at a recent investor day it is exploring "cannabis as an opportunity [for] non-nicotine." In fact, the tobacco giant has already invested big bucks in Cronos Group Inc (NASDAQ: CRON). Similarly, Constellation Brands (NYSE: STZ) has shown interest in the cannabis sector, investing in Canopy Growth Corp (NYSE: CGC).
Grey also alluded to the broader acceptance and curiosity from distributors, who are now "starting to talk about it as well." The cannabis industry's appeal isn't fleeting or temporary. "This is an industry that... is going to continue to grow," Grey said, emphasizing that the growth isn't just a short-term spike but a consistent, upward trajectory. "It's not a one-year thing. This is a multi-decade growth opportunity," he added.
As for the future prospects, Grey's bullish stance remains unwavering. "I'm as bullish as ever in the long-term prospects," he declared, forecasting an impressive figure for the industry's potential. "I still believe it'll be over a $100 billion opportunity at full-fledged legalization."
"Since 2010, cannabis use among ages 21-29 is up 55%, while alcohol use is down 11%. This isn't just a trend, it's a multi-decade growth opportunity. The future? A $100B+ opportunity with full legalization."
