Global Cannabis Market To Hit $47 Billion By 2025: Marijuana Stocks to Watch
As the Covid-19 crisis began making headlines in the U.S. in February, sales of medical marijuana soared.
US-Based marijuana companies like Trulieve Cannabis saw a significant 50% spike in sales versus sales for the previous month. By the end of March, Trulieve reported it had sold another 21,000 ounces – another 50% increase.
It’s worth noting that Trulieve Cannabis is one of the top marijuana stocks to buy and hold right now as their stock is poised for explosive growth per Cannin’s financial analysts’ recommendations.
While 2020 marijuana sales have skyrocketed, many folks are overlooking record global sales for marijuana in 2019.
Biggest Year Yet for Cannabis Stocks and the Marijuana Industry
2019 was the biggest year for marijuana yet. In fact, 2019 global legal marijuana sales grew by 46% to $14.7 billion, a substantial increase from the 16% growth of 2018, and the industry’s highest annual rate of growth to-date. Growth in the adult-use cannabis markets of Canada, California, and Massachusetts were the largest contributors to global marijuana sales growth in 2019. Expanding medical marijuana markets in Florida and Oklahoma also contributed to this growth.
These stats come from BDS Analytics (BDSA), a leading provider in cannabis industry research.
“By relaxing product restrictions and adopting more of a free-market approach to licensing, states like Florida are realizing the potential of medical cannabis sales,” said Roy Bingham, Co-Founder, and CEO at BDSA. “In addition, light regulation and low tax rates in states like Oklahoma enable citizen access, greater performance over the illicit markets and a healthy tax revenue stream for the state.”
Marijuana Stock Investment Experts Advise that US Marijuana Sales Lead the Way but Global Demand is Exploding
As a whole, U.S. sales grew 37% year-over-year to reach $12.3 billion in 2019, compared to 2018 U.S. sales of $9 billion. California reported solid 18% sales growth in 2019, compared to weak prior-year sales comparisons that included the first months of California’s adult-use sales that began January 2018. Although California contributed to a lion share of overall growth, Maryland and Oklahoma reported higher than expected sales in 2019 and boosted overall U.S. spending growth.
“The long-term sales growth outlook for the global legal cannabis markets remains exceptional with sustained average revenue growth of 21% projected through 2025,” said Bingham. “The cannabis industry may soon reach a watershed moment when U.S. states, faced with a looming global recession, consider cannabis legalization as a new and potentially lucrative source of tax revenues.”
On the global level, countries like Germany, Australia and Mexico had the highest growth in legal marijuana sales in 2019 – growing 64% from $446 million to $732 million.
Long-Term Outlook for Marijuana and Hemp Companies
The long term outlook for marijuana and hemp companies remains just as bright as the LED grow lights they use. Forecasts indicate that worldwide cannabis sales will continue to explode over the coming years. Also, much like alcohol and tobacco, cannabis has very consistent demand which became very evident during the COVID crisis.
How will this impact my marijuana stock investments?
Let’s face it: the last twelve months have been an absolute nightmare for cannabis investors but there’s still a ton of potential opportunities out there as the long-term outlook for Cannabis remains as bright as ever.
The winners and losers among the bunch are becoming more evident and we’ll continue to supply you with the research to discern between the two in the coming months.
Marijuana Stock Investing Experts Advise: Stay the Course
If you’re currently investing in cannabis stocks don’t lose hope. The cannabis industry as a whole still has significant potential and many of the stocks you own will eventually rebound. Don’t dump your shares at this industry low point unless you have to as there’s little risk in holding these companies to see how things shake out. On the same token, don’t necessarily double up on discounted shares either as this can be a risky strategy.
Remember – there will be plenty of losers and only a handful of winners in this space. Stay abreast of company news, financial results, and changes to management. Keep a close eye on company fundamentals and financials. Will companies like Harvest Health have enough cash to weather this COVID-10 storm? Will it have the ability to execute its growth strategy?
For now, the most important thing we can do as investors is to continue to evaluate the best opportunities. Watch for the next round of quarterly reports. Continue to monitor the market to see the next buying opportunity which would be precisely when the market dips into another bear leg.
Hang in there. Many of these companies will come back but we must be patient. This industry is still in its infancy and there is no shortage of incredible opportunity out there.
Global Cannabis Market To Hit $47 Billion By 2025: Marijuana Stocks to Watch
About Cannin: Your Marijuana Investment Experts
Market analysts expect the marijuana and hemp industry will have an annual value exceeding $75 Billion in the next decade. The time to invest in hemp and marijuana stocks is now. Are you looking to buy stock in hemp companies or marijuana companies? Interested in emerging penny pot stock companies? Looking for the best Canadian marijuana company to invest in?
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