There are several factors contributing to the overall growth and opportunity WOWI, Inc. has identified to help fuel its company growth. The overall worldwide cannabis market is growing from its own performance dynamics.
- Revenue Growth – The legal cannabis industry is among the fastest growing industries in the U.S. projecting $22 billion in revenue by 2020 from $5 billion in 2015.
- Investment – ArcView Group, one of the largest cannabis investment networks, expanded its membership from 30 to 500 investor members, investing more than $20 million in cannabis related startups. Plus, other private investment is developing, and major investment firms are beginning to study this market. See INVESTMENT TRENDS below.
- Money Talks – Many states are now faced with serious fiscal problems, and the deficits are not going to decrease in the future, so all states are looking for additional means of generating new tax revenue. Consider how states moved into the casino/gambling area for the tax revenue. Well… now it is the cannabis tax dollars that are being eyed by all states. The state of Washington is projected to receive $636 million in the next ﬁve years from its adult use cannabis market (Source: Economic Revenue and Forecast Council). Taxes and fees collected in Colorado in August 2015 were $13.2 million, the single highest month of tax revenues since adult use sales began in January 2014 (Source: Colorado Marijuana Enforcement Division).
- State Houses – More States entering into the medical and legal use market has led to greater mainstream acceptance and sense of inevitability of medical and legal use of cannabis in additional states. Twenty-five (25) states and the District of Columbia now allow qualifying patients to use medical cannabis. Four (4) states have active retail/recreational markets. Thirty-four (34) states offer the sale of non-THC- containing cannabis extracts such as CBD in small-scale programs (including Florida). Although not publicized, the states realize very large tax revenue generated by cannabis sales. For example, the tax revenue from cannabis sales in Colorado now exceeds tax revenue from oil and gas.
- Federal Win – The biggest federal win for the cannabis industry, was the Omnibus Spending Bill passed in December 2014 that effectively eliminated the federal government’s agencies from using funds to interfere with state law implementation of medical and legal cannabis use operations.
- Celebrities Enter the Market – Additionally, new products launched by famous figures such as hip hop star Snoop Dogg, musician Willie Nelson and actor Tommy Chong have highlighted the significant emerging opportunities for savvy marketers to leverage their celebrity status to establish new brands in this market.
- Overcoming False Negatives – Many of the negative predictions threatened by prohibitionists have not materialized. Crime is down, falling prices have made the legal market increasingly competitive against the black market, regulatory compliance is high as businesses dare not risk losing their valuable licenses, and product quality and diversity has increased.