5 Unexpected Sectors Being Transformed by Marijuana

By Matthew Milner, on Wednesday, October 10, 2018

As medical marijuana goes mainstream, it’s disrupting the $2.8 trillion healthcare market.

But thanks to some of the lesser-known attributes of the cannabis plant, it’s set to impact other massive markets, too.

For investors, this could mean billions of dollars in new profit opportunities.

So today, I’ll introduce you to five unexpected sectors being transformed by legal marijuana.

Sector #1: Raw Materials

Have you ever heard the term “hemp”?

This term is sometimes used interchangeably with marijuana. But hemp is actually a specific fiber that comes from the cannabis plant.

This tiny fiber is somewhat of a miracle. Its strength and adaptability make it a perfect raw material for about 25,000 types of products including food, clothing, and fuels like ethanol.

Hemp can also be used as an eco-friendly alternative to plastic, which creates a $100 billion market opportunity.

In fact, the toy company Lego recently committed $150 million to find a hemp-based alternative to the plastic it’s been using since 1932.

Sector 2: Construction

Hemp’s versatility and strength make it perfect for building and construction.

So now it’s being used to create what’s called “hempcrete,” a lightweight, cement-like material.

Hempcrete is manufactured in modular blocks and can be used as a substitute for traditional materials including insulation and drywall. (In fact, its potential is shaking the construction industry to its core.)

According to the industry trade group, The Hemp Industries Association, by 2015, more than $573 million was being spent on hemp-based home construction.

And now that the industry has woken up to hemp’s potential, that figure is growing fast.

Sector 3: Advertising

Since cannabis is still illegal at the federal level, cannabis-related businesses are prohibited from advertising on platforms such as Facebook, Twitter, and Google.

And at the state level, regulators even limit the number of signs marijuana retailers can put up on their own property. In Alaska, for example, retailers can only have three signs.

But as long as a sign isn’t on the store’s own property, it doesn’t count toward the limits. That’s why a new industry has cropped up: billboard advertising for cannabis companies.

Billboard advertising is a surprisingly big business. Last year, the industry brought in $7.7 billion.

And as marijuana legalization continues to spread, these specialty advertisers will grow.

Sector 4: Banking

With marijuana still illegal at the federal level, most national banks have steered clear of serving cannabis companies.

This is unfortunate, as it means cannabis companies have to conduct business solely in cash.

Local banks and credit unions have started to enter the sector, but their fees are high…

Maryland-based Severn Bancorp, for example, charges as much as $3,000 to open an account, and its monthly fees are about $1,750.

Partner Colorado, a credit union near Denver, is one of the bigger banks starting to cater to this sector. In 2017 alone, it brought in cannabis company deposits of close to $1 billion.

Sector 5: Alcohol

Across the globe, alcohol consumption is declining.

In response, liquor companies are looking for ways to expand their offerings — and cannabis-based beverages are at the top of list.

For example, spirits maker Diageo (whose brands include Johnnie Walker and Ketel One) has been looking to create a cannabis-infused drink…

And Constellation Brands, the company behind beers like Corona and wines like Robert Mondavi, recently announced a $4 billion investment in a cannabis company called Canopy Growth.

Get Ready for the Cannabis Revolution!

As you’ve learned today, legal cannabis is creeping into some surprising sectors…

And its financial impact is being measured in the hundreds of billions of dollars.

That’s why we’re looking for cannabis investment opportunities in some unexpected places.

Whenever we identify an opportunity with high-potential, we’ll share it with you.

Happy Investing.

Best Regards,
Matthew Milner

Founder
Crowdability.com

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Tags: Marijuana Medical Marijuana

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