The cannabis industry is arguably the most exciting in the world right now. Many states across the USA have now legalized medical marijuana and many have even legalized recreational marijuana. Marijuana is also legal for all adults across Canada, and users can even buy marijuana online. Not only is this great for consumers, but investors will want to consider investing in the cannabis industry.
Those who want to take advantage of the surging cannabis industry have many ways to invest. For instance, stock traders can now find many exciting cannabis stocks to invest in from major cannabis growers to pharmaceutical companies. Business investors can also get involved by investing money in some of the most exciting cannabis startups- especially as more are cropping up each month.
Whichever way, it’s well worth looking into investing in the cannabis industry. Even throughout the past year the industry has remained strong and doesn’t look like it’s going anywhere. However, much like any investment, it’s important to know exactly what you’re investing in and what to expect. Here are 10 things investors should know about the cannabis industry in 2021.
1. The Future Looks Bright For The Industry
Naturally, one of the first things that potential investors will want to know is where the industry looks like it’s headed. Some might have concerns about the cannabis industry, especially due to its legal nature in the past. However, with that said, it doesn’t look like the legal marijuana industry will suffer anytime soon.
As marijuana legalization continues to grow in Canada, the United States, and various other parts of the world, the global marijuana market continues to surge. It seems that people are now more interested in marijuana than ever, especially as it’s now available to many people for all kinds of purposes.
A report from Grand View Research estimates that the global legal marijuana market will be worth USD 70.6 billion by 2028. The industry was valued at USD 9.1 billion in 2020 and is expected to experience a compound annual growth rate of 26.7%. So far, the industry has experienced stable growth and seems set to continue with this trend.
This makes it a particularly exciting prospect for budding investors. Even in the short term, it seems that major stocks will grow year by year, and many new cannabis companies will take off within the next few years.
2. The Industry Performed Well During The Pandemic
The COVID-19 pandemic has wreaked havoc on many industries. Many businesses have had to rearrange the way they operate and the frequent lockdowns and restrictions have caused all kinds of problems for companies across the world. However, despite all this, the marijuana industry has continued to do well.
Interestingly, the marijuana industry didn’t just survive these pitfalls but thrived in the face of COVID-19. Cannabis sales in the United States hit a record high in 2020 of USD 17.5 billion. Cannabis sales in Canada also doubled, hitting $2.6 billion as many people bought their favorite strains and products during the pandemic.
There are a few reasons for this. These industries were already set to grow, especially as legal stores and dispensaries continue to open up. However, it seems that the pandemic has also helped sales. Cannabis dispensaries were considered essential businesses and many users likely bought weed to help with their health and deal with the mundanity of lockdowns.
This is great news for cannabis investors as it shows that the industry can thrive in the face of adversity. The future of coronavirus (and other potential pandemics) is still unknown, and it’s reassuring to know that even if lockdowns continue, marijuana companies can still stay strong.
3. Canadian Stocks Are A Great Bet
The United States cannabis industry is interesting for investors, especially as more states will legalize weed in the future and sales continue to grow significantly across the country. However, it’s not the only option. Interestingly, it appears that Canadian cannabis stocks could be the best bet for investors.
Canada’s marijuana laws are a dream come true for cannabis consumers and companies. Although laws differ in each province, it’s legal across the country and most adults will have no problem buying marijuana products whenever they want.
What’s more, many of the most interesting marijuana companies and stocks are based in Canada. Cannabis giants such as Canopy Growth Corp. (CGC), Cronos Group Inc. (CRON), and Tilray Inc. (TLRY) are all based in Canada, and many of the highest growing cannabis stocks last year were Canadian cannabis stocks.
Since the cannabis industry in Canada is so strong and so many of the biggest cannabis companies hail from Canada, it’s well worth looking into these. From huge cannabis corporations to new businesses, there are tons of good cannabis investment opportunities in the country.
4. Marijuana Is Now Legal In Mexico
While most investors have their eyes on the United States and Canada cannabis markets, it’s also worth considering what’s going on in other countries. Marijuana is becoming more accepted around the world, and it seems that the next major legal marijuana market will be in Mexico.
Just last month, Mexico passed a bill to legalize recreational cannabis. Many Mexican politicians, including the president, have expressed support and excitement for marijuana legalization and, although it’ll still take time to build the infrastructure of the legal marijuana market in Mexico, this is still an exciting prospect.
Investors who are looking for an alternative to investing in Canadian or American cannabis companies may even want to start researching the Mexican market. New opportunities could present themselves soon. What’s more, many of the major international cannabis corporations will likely expand their operations to Mexico, so this is great news for anyone interested in some of the biggest cannabis stocks.
5. Alternative Marijuana Products Are Gaining Steam
One of the most interesting things about the cannabis industry right now is that the variety of products available continues to expand. In the past, many people simply smoked Cannabis Flower by rolling it into a joint or using a Pipe or Bong. Nowadays, people legally have access to all kinds of convenient and effective methods of consumption.
Edibles have become an especially popular choice for users who want to avoid inhaling marijuana. They come in various forms such as gummies, chocolates, baked goods, and more. Not only are they fun to use, but they also produce stronger and longer-lasting effects and even a 10mg dose is enough to give most users a powerful high.
Concentrates such as Shatter, Wax, and Live Resin are another popular alternative. These contain much higher THC levels than Cannabis Flower and, as such, make for a great choice for users who want potent effects. They’re generally used for vaping or dabbing, although they can also be mixed with weed for smoking purposes.
Tinctures/Oils are also becoming popular. These can be applied directly under the tongue for speedy absorption. Not only does this offer a convenient way to get high whenever and wherever, but using THC Tinctures is also one of the fastest ways to get the effects of THC.
Other examples include Vapes and Topicals. The growth of alternative products is worth noting for investors as it shows that cannabis products are becoming more varied and accessible for users. Some may even want to consider investing in companies that focus on Edibles, Tinctures, or even Cannabis Accessories instead of just growers or dispensaries.
6. CBD Is Becoming Extremely Popular
Many people think of THC when they think of cannabis, especially as it’s the sole psychoactive chemical in cannabis that produces the psychoactive effects it’s known for. However, cannabis also contains a range of other cannabinoids that can also potentially have an impact on your body, with the most well-known being CBD.
CBD products are now a popular alternative to regular cannabis products. These products allow users to get the perks of cannabinoids without the psychoactive effects of THC, making them especially useful for medical users as well as those who want to avoid any potential side effects. Much like THC products, they’re available in many forms, including Tinctures, Edibles, and Vape Products.
CBD isn’t just a fad, either. Reports show that the CBD market has expanded significantly and is set to grow even more over the next few years. Arguably, the CBD industry even has more room for growth as it’s legally available in many countries where marijuana and THC products are still illegal.
Investors might even want to consider investing in CBD stocks or businesses. With the growth of the industry and its high potential, these companies could make for exciting and prosperous investments. Many large cannabis companies also produce CBD products along with cannabis and THC products.
7. Cannabis Pharmaceutical Companies Are Worth A Look
Although many cannabis growers and retailers are available to invest in on the stock market, some of the most valuable cannabis stocks are pharmaceutical companies that create cannabinoid-based pharmaceuticals. These companies often create innovative THC or CBD products that can be sold in areas where cannabis can’t.
GW Pharmaceuticals is a prime example of this. The UK-based company developed Sativex, the first cannabinoid-based pharmaceutical product to become medically approved in the United Kingdom. The company also produced the cannabinoid-based epilepsy treatment Epidiolex, which is now FDA-approved in the United States and EMA-approved in Europe.
Thanks to their success with cannabinoid-based treatments, GW Pharmaceuticals’ stock price has grown significantly in the past few years. This isn’t the only pharmaceutical company worth looking at, either. Companies like Cara Therapeutics and Zynerba Pharmaceuticals are also creating cannabinoid-based medicines that could take off in the future.
If you’re interested in investing in cannabis stocks, these companies are among the most interesting to add to your portfolio. These companies are capable of growing in overseas markets as well as in North America. Many have already grown significantly in value and have the potential for significant growth in the future.
8. Many Cannabis Users Now Buy Online
It’s not just the kinds of marijuana products people are buying that are changing as time goes on, but also the way people buy them. For instance, many cannabis consumers now choose to buy marijuana online instead of heading to a local cannabis store or dispensary, especially as there are many advantages to buying online.
Buying weed online is a much more convenient option for many users. Not only does it make it easy for customers to get the products they want via convenient home delivery, but online dispensaries often offer a wide range of products and even better prices than customers would find in dispensaries.
It’s also worth noting that, while customers are often limited by public possession limits when they buy marijuana from a store or dispensary, buying marijuana online allows them to get as much weed as they want, as well as other products such as Edibles, Tinctures, Vapes, Topicals, and more.
Buying marijuana online is especially popular in Canada, although many dispensaries in the United States are also starting to offer convenient home delivery for products. Cannabis investors should pay attention to this trend- companies that offer cannabis delivery will likely out-perform those that don’t in the future.
Investors looking for an industry that’s exciting, varied, and set for exponential growth should be looking into the marijuana industry right now. Reports and projections show continuous growth and more and more consumers are starting to learn about the benefits of marijuana and even trying it themselves.
Business investors won’t be short on opportunities especially as new cannabis and CBD businesses continue to emerge in the upcoming years. Of course, there are also tons of interesting cannabis stocks to invest in.
Bear in mind that investing is always risky and there’s no knowing how the industry will change in the future. With that said, things look very promising for the cannabis industry. Those interested in investing can read our guide on how to invest in marijuana. You can also find all kinds of marijuana guides and products at Buy My Weed Online.