Medical cannabis is popular around the globe, and numerous patients have claimed the positive benefits that medical cannabis has given them in treatment of their health conditions that synthetic medication has ceased to function. While recreational cannabis is widely used due to various things and effects, it can offer to the users who make them satisfy with their cravings for intoxication and comfortable impact.
Indeed, the industry of cannabis is unstoppable in progressing nowadays with the rapid legalization of cannabis day by day. It also provides multiple entrepreneurs with business alternatives to endeavor and expand their niche and create many job opportunities to get created as well, including processors, lab analysis, and many more. In this article, you will find out how much money can medical and recreational cannabis businesses make and which is more profitable in the marketplace.
Medical Cannabis Vs Recreational Cannabis
In this industry, cannabis usage is divide into two parts, which are medical cannabis and recreational cannabis. As the name pertains to, the former is more on cannabis stocks that are involved in thorough research and innovation for treatment and involvement in health conditions, while recreational does not bother such qualifications and matters more on recreational purposes like smoking and eating.
Profit and Accessibility
Which is more profitable than the two? Well, the answer to your question is recreational cannabis tends to have more profit than medical cannabis due to its easy accessibility. Anyone can obtain recreational cannabis without the necessity to be on a legal age. Indeed, the government has, and business owners of recreational cannabis have been benefited from the much profit of this aspect of the cannabis industry, which made them limit the accessibility of medicinal marijuana.
Medical cannabis, compared to recreational ones, has many further limitations when purchasing and more strict rule implementation of the qualifying situations before purchasing. For instance, it is only limited to people with mood disorders, anxiousness, depression. It gives more opportunities for people to access medical marijuana for patients with terminal health conditions.
Although in terms of quality, medicinal marijuana is far greater than recreational marijuana since the industry of the former has been around for many decades and has established innovative products over the years. It even became the criterion of numerous medical cannabis customers. While recreational only depends on the market from tourists and residents in purchasing products without the knowledge of what is quality or not.
Above all, the greater demand from the industry of recreational marijuana has forced cultivators to overexposure to the pesticide to help in aiding cannabis growth. It may sound like an abusive culture, but it is happening to keep up with the craving of the market
Moreover, medicinal marijuana is subject to higher taxes compared to recreational ones. It charges double the amount of tax on medical marijuana, which transforms tremendous interest in selling recreational marijuana at much greater prices as it does not compel medical cards to obtain at a lower expense.
On the other hand, it is hard for entrepreneurs to jump into recreational cannabis and take on the opportunity to be in the industry, with the stereotypical notion attached to cannabis, which is hard to follow the proper pursuit of the federal government even with promises for better profit.
Although both have valuable, attractive business opportunities for everyone and projects significant growth in profit over the years.
Analyzing Stocks of Medical vs Recreational Cannabis
With the growing improvement and opportunities provided by medical cannabis for users with health problems, it becomes a great opportunity for the stock market to blow up rapidly. According to statistics, medical marijuana has gained over 165.2 million dollars a year and has grown in the stock market of over 230%. This means from 9.5 billion dollars from the previous years; it has gained a lot since then, growing from 31% to 33% and until it reaches today’s stock market value.
Although medical cannabis was released first compared to recreational cannabis, it does not hinder its opportunity to grow in the stock market as it covers much wider opportunities and audiences. The head starts favored on medical cannabis, has given recreational cannabis to grow bigger and wider in the marketplace, and higher growth in statistical value.
It is a predicate that in the next years, 67% of cannabis spending around the world is on recreational opportunities and has drawn many investors’ intentions. Many consumers are even more than willing to pay hefty prices for recreational cannabis regardless of anything. Just recently, the market cap of recreational cannabis has reached 24.84 billion dollars and reaches a stock value of 44.64 dollars. In over a year, it has gained revenue of more than 77 million dollars.
Progression of Medical vs Recreational Cannabis
With much greater opportunities, indeed, medical cannabis has gained high revenue for the last year. Just recently, medical cannabis has reported having over 94 million dollars, while recreational cannabis has gained over 78 million dollars in sales.
With much higher demands from cannabis consumers and connoisseurs, it has gained a lot of opportunities to be recognized and known by everyone. Nonetheless, the laws and legalization matters put both medical and recreational cannabis into a much higher recognition.
In the prospect, medical and recreational cannabis seems to become powerful and thriving today, and many researchers have been conducted to provide more precise information of cannabis overall, which could help the kill the stereotypes and boost marketing sales of both products.
As mentioned above, there are many opportunities showing by recreational cannabis compared to medical cannabis due to its wider and bigger audience to cater to. While medical cannabis only restricts its audience for specified customers and caters only those who are qualified for such use, it limits the capacity of medical cannabis to reach many compared to the popularity of recreational cannabis. With this, it could provide you a much better precaution and thinking opportunities for what kind of investments to take on and opt for best.