In 2018, global cannabis sales reached $12.2 billion and in 2019, sales should soar to $16.9 billion. Some analysts estimate that annual marijuana sales could eventually reach $166 billion. While sales likely won’t approach that figure in the next ten years, it’s still clear this opportunity is huge — and that has investors excited.
Marijuana is legal for medical use in more than 40 countries and for recreational use in Canada and Uruguay. In the U.S., 33 states have legalized medical use, and 10 states plus D.C. allow recreational use.
But on a federal level, marijuana remains illegal in the U.S. and is classified by the Drug Enforcement Administration as a Schedule 1 substance. Future sales growth will be driven by new markets opening, new products, pot companies scaling, and the growth of the U.S. hemp market, which has seen explosive popularity since President Trump signed the U.S. Farm Bill, legalizing hemp products like CBD.
The Motley Fool team look at the investment opportunities for the following shares:
- Canopy Growth,
- Aurora Cannabis
- Cronos Group
- Charlotte’s Web