As Canada’s legalization of cannabis draws closer, many are wondering what the future holds for this industry. Experts say it could be huge—but with a caveat: inexperienced organizations and companies will enter uncharted territory. We have to take note that there is still a lot more research to do before we can expect any real concrete results from these products

Step aside alcohol. There’s a new weedy vice in town

Step-aside-alcohol-Theres-a-new-weedy-vice-in-town

 

Since recreational marijuana was legalized in Colorado in 2012, it’s been no secret that the state’s cannabis firms and the state itself may benefit financially.

After a decade, a number of other states in the United States have followed Colorado’s lead in allowing residents to buy cannabis in the same way they buy beer or whiskey.

Although it was expected that recreational marijuana sales would take off quickly, experts could not have foreseen the level of demand that has emerged. Here are a few important signs that show alcohol is no longer the king of vice.

 

People are looking for new alcohol substitutes.

Beer, wine, and liquor industries have been taken off surprise by the huge demand for cannabis products. Alcohol sales tax income has been eclipsed by recreational marijuana sales tax revenue.

There are many reasons why cannabis tax income has eclipsed alcohol revenue, according to David Feldman, CEO of Skip Intro Advisors, a strategic consulting business for up-and-coming cannabis firms.

“Some states have greater marijuana tax rates than they do for alcohol, so this disparity may reflect that,” Feldman added. “However, seeing cannabis tax income surpass that of alcohol is a significant milestone, as it suggests that more individuals are turning to cannabis as an alternative to more addictive items like alcohol and pain relievers,” he said.

Numbers aren’t deceiving.

The fact that just 60% of U.S. adults reported consuming alcoholic drinks last year, down several percentage points from a decade ago when it peaked at 67 percent, demonstrates that people are looking for alternatives to alcohol.

The popular opinion of adult recreational cannabis usage has altered considerably over the last decade. As a result, cannabis consumption is trending in the opposite direction of alcohol consumption, which is one of the reasons it has exceeded alcohol in terms of sales tax income. According to studies, around 22 million Americans consume cannabis on a monthly basis.

More surveys anticipate that the percentage of Americans who have at least tried marijuana will soon approach 50%, illustrating the United States’ persistent attraction to cannabis as an alternative to alcohol.

Both Washington and California are contemporary instances of how countrywide cannabis legalization might force alcohol to take a back seat for good. California, for example, received $369,028,000 in alcohol tax income, compared to more over $1 billion in cannabis tax revenue. During the most recent fiscal year, the state of Washington received more than US$229.4 million in sales tax income from cannabis goods than it earned from alcoholic beverages. This upward trend shows no signs of abating.

Sales tax income from cannabis goods almost quadrupled that of alcoholic products, according to figures from the Washington State Liquor and Cannabis Bureau. While overall sales tax income from alcohol was roughly US$18,500,00, cannabis sales tax revenue was more than US$46,503,315. The issue is whether these sales tax percentages would stay unchanged until the recreational cannabis industry matures.

Will cannabis’ kingship continue as long as that of alcohol?

For decades after prohibition ended, alcohol was the preferred drug. During the mid-to-late 1970s, America’s alcohol consumption peaked, with more than 70% of respondents reporting that they drank. People in the United States were certainly overdue for a new vice to capture their attention and, as a result, their money, over a century after the end of alcohol prohibition.

As marijuana prohibition nears its end, one concern that will occupy cannabis consumers’ thoughts for years to come is what drug will challenge the crown that cannabis has taken from alcohol.

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