The cannabis industry has been moving up in terms of value and proliferation over the course of the past ten years, but with new legislation happening around the world, it seems as though now is the time for cannabis to shine. One of the largest markets for cannabis remains that of the Canadian industry. Cannabis sales have risen in the country by as much as 100% in the past four years, with research reports showing this growth will only continue to happen in the near future but to a larger extent.
A recent poll from Gallup shows that the public support of cannabis legalization nationwide for recreational use is over 60%, while medical marijuana legalization support is above 90% in the U.S. Because of this, many analysts expect the market to continue growing rapidly in the near future.
The research group known as ArcView, which researches the cannabis market, stated recently that they expect the legal cannabis market to exceed $50 billion in the next ten years from where it currently is at a little over $10 billion. Because of this, many stocks in the industry have just now come to light in lieu of new legislation and opening markets. The industry continues to be extremely exciting as new developments happen on a daily basis.
One of the more well known companies in the industry, Cronos Group (NASDAQ:CRON), which works with the production and sale of cannabis, stated growth of over 270% year over year with a full year sales report of over 636% in gains. The Cronos Group is one of only a few companies to be listed on this exchange that deals with cannabis, which continues to make them one of the bigger choices for those looking to get into the cannabis market. In addition to this, the CEO of the company, Mike Gorenstein, stated that “we look forward to a year of rapid increases in sales, commencing distribution in new markets, further developing the disruptive intellectual property and launching new iconic brands.” This commitment to growth is what is keeping the Cronos Group at the top of investors’ lists in the cannabis industry.
Another company that many investors have been looking at is known as Namaste Technologies Inc, (OTCQB:NXTTF). This company has posted record second-quarter sales with growth of almost 200% year over year. With sales surging at over 160% in the first six months of the year, the demand for medicinal marijuana is easily reflected in this company. Namaste’s key to growth is the belief that they can continue to expand their sales growth by adding medical cannabis to their portfolio. If they are able to acquire more patients, they will likely continue to grow in the space. With a 5% increase in the stock price occurring after their earnings release this week, it seems that Namaste is continuing to be on the up and up.
The marijuana market is still very much in its infant stages, which means that there is a lot of room for companies to continue growth in the sector. As more and more companies see this growth and realize the massive opportunity for cannabis, the space will continue to be flooded with new ideas. Because of this quick growth, there is a recent flood of investments and money into the space which is helping to continue growing it as well. The hopes are high that with new legislation in the industry, companies will continue to be able to grow to their full potential in the near to not too distant future.
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