The Canadian cannabis market has long been one of the most powerful throughout the industry. With legislation in favor of cannabis being in place for quite some time now, it seems as though the Canadian market is only continuing to dominate the industry. A new study from the group New Frontier Data has helped to reveal just how much the Canadian marijuana industry is dominating the entirety of the market.
The report states that “Canadian companies are allowed to export abroad, making them some of the first companies in the world to sign international cannabis trade deals. Canadian companies dominate global marijuana trade.” This continues to be true throughout the industry. Canadian export of cannabis has helped to build larger markets throughout Europe and beyond in places like Germany, where the medicinal legal cannabis market is just now beginning to flourish. Canadian companies have also reported exporting as far as Australia and Jamaica, showing just how large of an influence they have on the global market.
The report continues to state that there was over $1.2 billion invested into the Canadian cannabis market during the first five weeks of this year. With the impending legislation for legal recreational cannabis throughout the country, it seems as though more and more investments are beginning to pour in. Canada is set to vote for a third and final time on whether or not cannabis should be legalized for recreational use this summer. This would be the first time that a developed country has legalized weed for these purposes. The legalization also represents a paradigm shift in an industry that has often been looked at as taboo for quite some time now.
Many have questioned why the U.S. market has not reached the top yet, but it is clear that federal legislation is the only thing stopping it. Cannabis in the U.S. is still federally illegal which means that states can somewhat choose to vote on whether or not they would like to legalize the substance. This has led to a murky industry that is often difficult to navigate, but hope is on the way.
The country of Canada has become somewhat of a safe haven for companies looking to begin their future in the cannabis industry. Many Canadian cannabis companies have seen their revenues reach the hundreds of millions just on the sheer production of cannabis, showing how powerful the market is at this point. The top companies in the space have already reached as much as $1 billion in joint revenue, which means that there is only room to continue growing in the near future. The only issue is that of legalization, but this is poised to change this summer as mentioned previously.
One of the most popular Canadian cannabis stocks is Canopy Growth Corp. (OTCMKTS:TWMJF). Canopy has continued to see a massive amount of growth despite whatever is going on in the market at a certain time. Many see Canopy as the mother of cannabis stocks given their growing potential and the amount of potential they also have to increase their business in the near future.
The market on cannabis is still very much in its infant stages which means there is a large amount of room to continue growing. The only thing standing in the way of the growing market is the effect of legislation on the individual industries. With changing laws hitting around the world, it seems as though cannabis is on its way up. Only time will tell how well these markets continue to do on their way to seeing maturity in the space altogether.
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