The annual celebration of cannabis that occurs on April 20th, appropriately named 4/20, has helped to see a boom in the stock market for marijuana. The marijuana market has reportedly been thriving for quite some time now, with a large amount of companies entering the $1 billion market cap and up division. There are a lot of reasons why the market could continue this success in the near future, and here’s just a few.
There are a large amount of opportunities in the cannabis industry that are quite enticing to all. One of the largest markets in the cannabis industry continues to be that of Canada. Canada represents the majority of the companies with market caps over $1 billion. Many of these companies, however, have been looking to find new business outside their country, usually turning to states like California or Colorado for growth opportunities.
Aurora Cannabis is also helping to completely change the idea of what am modern day cannabis company can be. Aurora compiled the statistics a while ago, stating that medical marijuana demand across the world could be somewhere around 3 million kilograms per year. This is something that many businesses need to keep in mind when looking toward the future of the industry.
Although many people think of solely the U.S. or Canada when they think about legal weed, there are many large foreign industries that have helped to pick up the slack in other parts of the world. One of the largest of those markets continues to be Germany. Aurora Cannabis recently reported that they have generated as much as 21% of their total revenue from the Canadian market. Other companies such as Canopy Growth, the largest marijuana company in the world by market cap, stated that they have at least 1 million Canadian dollars in sales from across the country of Germany.
Other companies such as the popular MedReleaf, has announced supply agreements with distributors in Germany to try and tap into what is quickly becoming a growing market. Companies like Aphria and the Cronos Group, are also looking to cement partnerships with companies within Germany. The German market has been targeted much more highly than other European industries because of the lax regulation and high demand within the country.
Many other markets throughout the world have been developing new policies having to do with cannabis. From countries like Brazil, who is looking to legalize marijuana for medicinal use. The industry in Brazil could potentially reach as much as $1.4 billion per year, according to data from the popular company New Frontier Data.
The largest part of the market continues to be that of the U.S. Many states throughout the country are working tirelessly to try and cement laws in favor of cannabis. The one issue throughout the country is that marijuana is still considered to be federally illegal from the point of the U.S. As new laws are able to come into place, the hopes are that the notion surrounding cannabis that has made it taboo will change. The future of cannabis has been growing into the existing market filled with new technologies and breakthroughs happening on the daily. If legalization can begin to happen from a nationwide standpoint, the industry on cannabis may be able to reach its full potential sometime in the near future. With changing sentiments surrounding the cannabis plant and what people think about it, the hopes are high that the industry will continue its massive growth, helping it to contribute widely to the country and the rest of the world.