By: Hala Laurette ElKhoury
Throughout history, the world’s view on cannabis has continuously been altered and affected by popular culture, changing cannabis laws and seemingly contradictory research.
It is an industry where the facts have always been conflicting, obscured and manipulated, leaving generations of consumers unsure of the facts.
Although the last decade has shown progress in de-stigmatizing the industry through waves of acceptance and legalization, many of us still find ourselves wondering how such a seemingly harmless plant, so natural and unprocessed, can be illegal on an almost-global scale.
The evolution of the cannabis industry
Despite the last century’s global governmental efforts to prohibit cannabis and its use, the flower retained much of its appeal in many social circles and popular culture.
Consumption and appreciation of cannabis has been referenced in music throughout the years (e.g: jazz music in the 20’s & 30’s, the hippie movement in the 60’s & 70’s, Rap & RnB in the 90’s & 2000’s) until it eventually became more accepted and talked about.
As early as the 1970’s, some regions around the world decriminalized and, even, legalized cannabis to some degree; but, for the most part, cannabis continued to be vilified and surrounded by misconceptions and inaccuracies – all factors that played a role in hindering the plant’s research, acceptance and legalization potential.
History of marijuana
Marijuana has been found to be a prominent plant in ancient civilizations. It was regarded as a healing plant, one that would relax its consumers, one that could be used to treat various ailments.
There are mentions of the plant in Eastern Asia (Japan, Taiwan, China, Korea) that date back to 8000 B.C. In ancient Egypt, hieroglyphic symbols representing cannabis go back to 2350 B.C.; it was viewed as a medicine and would be sold in their ancient “pharmacies.”
Ancient Indians even imported cannabis all the way back in 1600 B.C. as a treatment for anxiety and other disorders; and, that’s when they gave it the name “ganjha” (which remains a common name for cannabis till this day).
So, how and when did the shift happen where it became classified as a “hard drug?” When did it go from being used as a healing plant to being deemed “the devil’s lettuce”?
History of marijuana’s negative stigma
Looking back, the first recorded action taken against cannabis was in 1906 when new regulations were placed to restrict all narcotics, including marijuana.
The New York Times commented on this enforcement, saying, “The inclusion of Cannabis indica among the drugs to be sold only on prescription is common sense. Devotees of hashish are now hardly numerous here enough to count, but they are likely to increase as other narcotics become harder to obtain.”
The anti-cannabis actions continued in full force over the next few decades, which eventually led to the formation of the Federal Bureau of Narcotics in 1930.
The Bureau claimed that the plant made people “commit violent crimes”, “act irrationally” and “overly sexual.”
It was only natural that this movement eventually led to The Marihuana Tax Act of 1937 which made the possession and transfer of cannabis illegal under US federal law.
At a time when cannabis was being prohibited, it was simultaneously being openly discussed and celebrated in the period’s prominent jazz scene.
An album titled Reefer Songs was released with 16 songs, each describing the pleasures associated with the plant; additionally, in one of her songs, Bessie Smith (the empress of the Blues) demands “a reefer” with a “gallon of gin.”
This trend ignited a curiosity surrounding the plant and was the beginning of the everlasting polarity between the government’s and the public’s stance on marijuana.
A polarity which brought along the hippie movement and its blatant support of cannabis use as a means to defy the government. To ensure that these movements and riots were going nowhere, President Nixon passed the Controlled Substances Act in 1971, which classified marijuana as a Schedule 1 narcotic, placing it in the same category as heroin and cocaine.
States legalize marijuana
Despite President Nixon’s efforts, numerous states began to address the medical use of cannabis; and New Mexico initiated this movement in 1978, with the support of over 30 other states.
Almost 20 years later, California became the first state to legalize cannabis for medical use in 1996. One specific state took a different route: Oregon sidestepped the rest of the states’ routes and decriminalized the plant in 1973.
Over the next 15 years, at least a dozen other states followed in its footsteps. This movement also made its way to the rest of the world with multiple European countries decriminalizing marijuana (such as Portugal, Germany, Italy, Romania, etc..) as early as thew 1990’s.
Following the medical legalization of marijuana and the benefits it brought, countries around the world started legalizing it recreationally over the past few years.
Numerous nations began to dabble with the legal landscape surrounding recreational cannabis, which, in turn, led to internal benefits (such as: higher governmental revenue, higher GDP, lower crime rates, lower governmental expenses, etc.)
When California became the first state to legalize marijuana for medical purposes, a wave of acceptance swept the country. This wave continued to grow and now, as of 2020, 20 states have legalized cannabis for solely medical purposes and 14 states + the District of Columbia have legalized the plant, both, medicinally and recreationally.
This rapid spread led to the US government passing a bill which aimed to remove cannabis from the Controlled Substances Act in 2019, a big step towards federal legalization.
The future of the cannabis industry
It is evident that this industry is growing exponentially: in 2020, alone, the US legal cannabis market continued to expand, with Arizona, New Jersey, Mississippi, Montana, and South Dakota voting to legalize cannabis recreationally.
As the legal cannabis market continues to grow, great opportunities are beginning to surface: large investments/funding, multi-million dollar companies, big trades, cannabis companies listed on numerous stock exchanges, new markets, etc…
Just over the past 5 years, the US legal cannabis market grew from $5.4 billion in 2015 to reach $19 billion in 2020 despite the pandemic.
In addition to launching his own cannabis brand, just late last year, Jay Z raised $10 million to fund minority-owned cannabis businesses.
Nabis, “a software-enabled cannabis distributor that seeks to link farmers, manufacturers, brands, and vendors to improve the distribution process” raised $10 million across its fundraising rounds.
Bringing experts and investments into this industry has led to its continuous change and evolution, with fast-paced trades taking place, new concepts / startups launching, and old brands re-vamping to adjust.
With the continuous improvement in this plant’s legal landscape, the industry has nowhere to go but up.
The U.S. legal cannabis industry alone is expected to reach a $30 billion annual market value by 2025. However, this industry is still one that struggles and faces many issues when it comes to its legal framework.
What is the future of cannabis going to look like? Will its legal landscape always remain gray, or will it be shaped more clearly over the upcoming years? What changes could interrupt this rapidly growing new market?
Challenges in the legal marijuana industry
Despite recent advancements in the industry, it still has many challenges to face over the next few years. Many obstacles and difficulties are surfacing because it is still a new industry in a growth period, with an unclear legal landscape.
Different jurisdictions within the same country have their own cannabis laws, so we can’t expect a global regulation any time soon.
For example, each state has its own possession limits, distribution laws and legal landscape. This all adds to the ambiguity of the industry’s landscape.
Overcoming the stigma of a drug that has been illegal for so long will bring its own difficulties.
As if that is not enough, legality and regulation will continue to shape the industry, as different countries and states within the U.S. approach the use and sale of cannabis differently.
Banking will continue to be a challenge as American cannabis companies cannot access traditional banking services and largely have to operate in cash. Companies are forced to deal with a myriad of legal and financial barriers.
Though the cannabis industry is growing and the use of the flower is becoming more accepted in society, the industry still has to navigate through complex layers of regulation that will impede its growth and make it difficult for investors and businesses to operate successfully.
It is essential for anyone operating in the cannabis industry to be on top of the constantly changing laws and structure the business in a flexible, adaptable manner.
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