Having long been considered illegal and a taboo industry, marijuana cultivators and users are still working towards its legalization. As marijuana use becomes more accepted both medicinally and recreationally across the country, will the marijuana industry still be considered high-risk if it’s legalized in 2021?
Marijuana is one of the most commonly used addictive drugs in the world among young people. According to the 2018 Monitoring the Future Survey, 11.8 million young adults had used marijuana in the past year and the number of middle and high school students using marijuana has increased as well.1
Despite the plant being tagged as risky and illegal, half of the American population believes that marijuana should be legalized. The drug is already legal in the District of Columbia as well as in 35 states, 16 of which allow adults to use the drug for recreational purposes.
The marijuana industry has made many strides in recent years. Just last year, in 2020, 5 more states voted to legalize the recreational use of marijuana, including South Dakota, Mississippi, Arizona, Montana, and New Jersey.
As more states legalize the medicinal and recreational use of marijuana, fewer young adults consider marijuana use risky. Despite the shifting public views about cannabis and the much broader use of CBD products across the country, however, it’s difficult for CBD businesses to obtain a merchant account.
While the legalization at the state level indicates progress, there’s likely still a long way to go for the federal government to legalize marijuana. Investors trying to enter the United States market will have to go through a myriad of legal battles.
Even if marijuana use and its products are now widely accepted in society, overcoming the stigma surrounding cannabis will still be a challenge for many.
While the marijuana industry may still be considered high risk due to the legalization challenges, there’s no stopping it. As fewer people consider marijuana use risky and an increasing number of Americans continue pushing to legalize it, the marijuana industry will surely continue to grow and CBD use will become more widespread. Industry researchers, farmers, and investors continue demonstrating the benefits of marijuana use and even mainstream companies are capitalizing on the CBD craze.
While we don’t know how much longer will the marijuana industry remain high risk, it will continue to face a multitude of challenges with the laws in different states and countries, but it will also evolve. Even amidst the COVID-19 pandemic, online CBD sales increased, proving how the industry can rise to any challenge.
As a business in the cannabis industry, a CBD merchant account is vital, especially as credit card companies won’t let customers buy CBD products for a number of reasons. Partnering with a reliable payment processing company will allow you to offer customers alternative payment methods as the marijuana industry adapts to different restrictions across the country.