In 2012, Washington and Colorado became the first states to legalize recreational marijuana. Since then, more states have followed. To date, 33 states have legalized the recreational or medicinal use of marijuana. Canada legalized recreational use nation-wide in October 2018.
As these legal markets emerge, investments are pouring in (by one estimate, consumer spending on marijuana will reach $23.4 billion in 2022), including two high-profile investments from Corona-maker Constellation Brands STZ, +0.55% and Marlboro-maker Altria MO, -0.81%
These investments from Big Alcohol and Big Tobacco might suggest the cannabis industry will come to be dominated by a few large producers and retailers. And certainly, some price-sensitive consumers will prefer the type of cheap, generic cannabis that large-scale producers specialize in.
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