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New York legalized the use of recreational marijuana on March 31, joining 14 other states throughout the US that have passed similar legislation in recent years.
The Empire State and its neighbor, New Jersey, are poised to become two of the largest markets of legal cannabis in the nation.
New York could book $1 billion in sales during its first year and could reach $4 billion by 2030, according to studies and projections by cannabis companies. Meanwhile, sales in New Jersey are projected to approach $1 billion annually by 2024, according to Marijuana Business Daily.
Each time cannabis is legalized in a state, it creates a cottage industry for local entrepreneurs — not just local growers and sellers, but a wide variety of businesspeople.
Opportunities ‘from farm to flame’ depend on how many licenses local governments hand out.
The scale of the opportunities for locals to make money directly handling marijuana will depend greatly on how many licenses local governments in these states hand out. How many will be available and who will get them is something that will take time for local regulators to sort out. Typical businesses in the cannabis supply chain include cultivating, extracting, manufacturing, testing, distributing, delivering, or retailing.
“Those are the larger buckets of activities in the supply chain that effectively goes from farm to flame,” cannabis investing firm Mazakali CEO Sumit Mehta told Business Insider.
Some of the most promising businesses may be those that don’t directly handle the plant.
There is an entire second industry of businesses that support or compliment operations that directly handle marijuana, ranging from security and marketing to medical professionals. Mehta estimates that for every dollar spent on the cannabis supply chain, another two go to industries that support them.
“There are also roughly twice as many businesses supporting the cannabis supply chain as there are in the cannabis supply chain,” Mehta said.
Beyond licensed professionals, the complicated nature of local regulations and use laws open up opportunities for local marketers seeking to become the default local sources of reliable information.
“Because cannabis has been illicit for so long, there’s a huge gap between what people understand and know about it, and what they need to know,” Massachusetts-based cannabis appliance company Ardent CEO Shanel Lindsay told Business Insider.
Then there’s hardware. Head shops offering classic paraphernalia like bongs and pipes benefit, but legalization also opens up pathways for more sophisticated user items like Ardent’s
Source:: Business Insider