The industry on marijuana has continued to present a massive amount of opportunity over the course of the past few years and beyond. With research showing that the industry is up 22% as of last year from the year before, annual sales are expected to grow by 27% compounded through the year 2021. The market on North American cannabis could potentially reach over $20 billion by the end of that point, so what’s next for the market?
One of the newest products to enter the market is ETFs that are based on the prices of marijuana. The ETFMG Alternative Harvest ETF or MJX, is an exchange traded fund that invests in marijuana related stocks. Over the course of the past two months, the stock is up 14%, which is quite solid when compared to other ETFs in the market.
Our neighbor to the north, Canada has been helping to boost the market on pot as well. For a while now, Canada has had legal pot on the federal level, and they could potentially have weed made legal for recreational use by July of this year. In the U.S., the market on weed is expected to grow exponentially in the next year or so with many individuals hoping that the federal government will work on lowering the scheduling of the plant. With 29 states and the District of Columbia already having some form of legal marijuana whether that be for medicinal or recreational use, it seems like much of this legal work is under way already.
One of the issues that continues to remain is the fact that weed is still illegal on the federal level. Like mentioned prior, weed in the U.S. is considered a schedule one narcotic, adding it next to a list containing drugs like heroin and the lot. As many large opportunities for the market begin to come out, many expect that this will change in the near future.
A promising aspect of the market continues to be the pharmaceutical section of the market. As more and more states begin to legalize cannabis, companies can begin to have an easier time testing their products and getting them approved by the FDA. Cannabis has proven itself many times over as a viable alternative to many of the more traditional medicines that are currently available. One of the biggest issues within this country continues to be that of the opioid epidemic. Marijuana has a large argument against the use of opioids and continues to show the positives it has when compared to such a harsh drug.
The demand for legal cannabis continues to increase as we move further into the future. With many states choosing to legalize the use of marijuana for medicinal and recreational use, it seems like the market could only continue to grow. Stocks in the space have continued to show how valuable they are and the potential they have to grow as the market itself continues to grow.
One stock that continues to attract investors is the Canadian company Aphria (APHQF). The stock which is listed on the Toronto Stock Exchange, as many marijuana stocks are, has gone up by over 150% since October of last year. This type of gain is unparalleled across many markets and continues to prove its value to the greater weed economy. Canadian cannabis companies continue to set an example for the rest of the world, showing how a legal weed industry can benefit the population and the market. The hopes are that the U.S. market can begin to emulate the benefits of the Canadian market, so that both can work in harmony together.
The hopes are high that the markets will continue to grow across North America as marijuana sees legislation change for the first time since its prohibition.