The Cannabis industry is still in its infancy but continues to grow at a rapid pace. There are some risks to invest in an industry that is federally illegal, however, the rapid progress of the industry and widespread support for legalisation indicate that the cannabis industry is poised for massive unparalleled growth.
A society in transition | Canada’s new growth industry*
The total cannabis market in Canada, including medical, illegal, and legal recreational products, is expected to generate up to $7.17 billion in sales in 2019—up to $4.34 billion of which will come from the legal recreational market.
A sizable market awaits
Medical cannabis is anticipated to generate an additional $0.77 billion to $1.79 billion in sales, with the illegal market bringing in a further $0.51 billion to $1.04 billion. Overall consumption through legal channels is expected to rise by up to 35 percent, as likely new consumers offset the proportion of current ones who elect not to transition to legal channels. The cannabis spend overall is also expected to rise by up to
58 percent, owing primarily to the fact that prices for legal products will be higher.
Current Market Conditions
The historical Growth rates have created a gold rush as companies flock to get involved in cannabis, with Constellation (STZ) investing over $5 billion into Canopy Growth (CGC). Other investments have also been rumoured, including a deal with Coca-Cola.
There is also a Gold rush from investors flooding into cannabis investments.
This has created bubbles where some stocks are overvalued and there are many companies that presents an attractive value for diligent investors. Canbigold is aiming to become one of the attractive options to investors.
Current standing of 5 largest Canadian Cannabis producers
Canopy Growth • Aurora Cannabis • Aphria • Tilray • Cronos
All above listed Public enterprises in Canada
Market indicators estimates Canadian cannabis market at 7.2 Billion USD, most analysts favour a potential growth to $33 billion in as little as 5 years.
The general consensus by market analysts are that supply could meet demand as early as late 2019 and the price for cannabis shares could see a correction.
It should also be noted, as more and more countries legalise the use of Cannabis both medicinal and recreational (of which the latter are a far bigger market and expected to remain so at least in the near future). The market for Cannabis should expand exponentially and should have a positive effect on the price.
In summary, the market capitalisation could quadruple in the medium term and the upside for investment in the industry could be very favourable. The expectation of a price decline in the short term is an obvious reality, however Canbigold has provided for this eventuality and the forecast in the business model discounts for market fluctuations in the short and medium term.
Should one research the current cannabis market and gather further expert opinion and forecasts it becomes more evident that the Cannabis industry is a profitable and sustainable investment.