Cannabis is the most extensively cultivated, distributed, and consumed drug today. It is also one of the world’s fastest-growing industries, primarily due to the newly discovered medical benefits of CBD (a chemical compound found in cannabis). Cannabis is being used to treat chronic illnesses such as cancer, Parkinson’s disease, and depression. This has led to the recent legalization of cannabis in many different countries, including Canada and 35 US states—permitting both recreational and medical usages in some. This legalization along with the increase in consumer demand in the U.S. market has demonstrated the potential for long-term growth in the cannabis industry. This growth was further suggested by the 2020 global cannabis market valuation, at $9 billion with a forecasted compound annual growth rate (CAGR) of 26.7% between 2021 and 2028.

The cannabis industry can be divided into three sectors, including cannabis retailers, ancillary cannabis businesses, and biotechnology companies. The retailers usually grow and package cannabis for distribution, ancillaries provide services to cannabis companies, while biotech companies utilize cannabis to develop pharmaceutical drugs. During the first several months of the pandemic, the cannabis industry experienced significant growth in sales, due to the increased time spent at home coupled with the rising cases of anxiety. Dispensaries were also deemed as essential businesses in the U.S., which enabled the cannabis market to remain unaffected during COVID-19. The increasingly promising cannabis industry has not only captured the attention of manufacturers, researchers, and consumers, but it has also been of interest to many investors. For instance, large corporations including Constellation Brands have purchased multibillion-dollar holdings into the cannabis market due to its long-term growth potential.

The Cannabis Investor is a publication offering relevant updates in the cannabis industry and explore notable companies leading the market.