3 Effects Marijuana Legalization Has Had on the Tobacco Industry
For some time, tobacco had a stronghold within the recreational drug industry, but that may not be true much longer. The legalization of cannabis is around the corner with more states declaring it legal, which is the reason many wonder how cannabis will affect this industry. The following are three ways tobacco may be impacted by cannabis legalization.
1. Complimentary Affect
The reality is that no one knows how the tobacco industry is going to be affected by the emerging marijuana industry. There are some numbers out there. In some states with medical marijuana, there seems to be an increase of tobacco use, which is a good thing for both industries.
This specific trend has encouraged a number of tobacco businesses to invest in marijuana. They are making moves to own marijuana companies so that any movement with tobacco and marijuana benefit tobacco companies.
Now, it should be pointed out that states that allow medical marijuana use have just taken one step towards legalization. There are politicians fighting to fully legalize marijuana and make it a recreational drug, so there is no telling what could happen then.
2. Competitive Affect
Another thing that should be pointed out is that there is still a strong campaign against tobacco use. This reality has also developed another trend that folks are giving up on cigarettes in favor of marijuana.
Of course, if tobacco companies go all in for marijuana, this change won’t affect them as much since they are still going to be profiting from this change, but the reality is the marijuana industry is not going to be owned by tobacco companies. There are some that stay independent, which can be hurtful to this industry. It should also be pointed out that marijuana growth could become legal as well, and since marijuana can be easily grown, this also poses another danger to the tobacco industry.
This is not to say that to the tobacco industry is in danger of losing complete power, but they may suffer some financial loss due to the legalization of marijuana. There is no telling if the trend will catch on, but some people are looking at marijuana as a more acceptable alternative to tobacco, so this trend may develop.
3. Saving Grace
There is no doubt that tobacco has been fighting a massive movement that is trying to get people to stop smoking. Some of these attacks have been pretty effective, but the tobacco industry continues to fight, but the culture in America and in the world hasn’t changed. Tobacco is not an industry that is looked upon positively, and the industry has to come to terms with this reality, especially with the rise of marijuana.
Cannabis is not only rising in popularity, but the culture around it is more positive and exciting. It is a drug that has been illegal for a long time, and it is becoming more accessible to the public. This excitement and general positive feeling around marijuana is making it a public darling. Popular politicians, movie stars, and music stars are all talking about marijuana use like it’s no problem.
The tobacco industry may be winning the fight, but there is no telling how long this may be the case. There are a few companies in this industry that are not doing so well. The companies struggling are eyeing marijuana as a saving grace, which is an industry they can potentially use to stay viable. Some of these companies already have enough farmland to make a move to cannabis and have the infrastructure to distribute the moment the US makes it legal.
There are a lot of questions that simply cannot be answered about the relationship between the tobacco industry and the marijuana industry. Some trends make it seem like the two industries are going to be working hand and hand together, but that is not set in stone.