The swift regulatory changes taking place in the global cannabis sector are almost without modern precedent.
While some find the situation analogous to the repeal of Prohibition in the United States,Visual Capitalist's Jeff Desjardins notes that it’s also fair to point out that such events happened 85 years ago in the midst of the Great Depression. It was a long time ago, and in a very different economic climate.
Today’s infographic comes to us from Evolve ETFs, and it shows what investors should know as the legal cannabis sector comes out of the dark.
Courtesy of: Visual Capitalist
WHAT CANNABIS INVESTORS SHOULD KNOW
Since there is so much happening at once with little precedent for what such a market will look like, it’s worth summing up the sector’s potential in broad strokes:
1. Global Size
According to research from The Brightfield Group, the size of the legal cannabis sector is expected to surge from $7.7 billion to $31.4 billion between 2017 and 2021.
Currently the recreational market makes up only 37% of the global total – but by 2021, that will rise to 57%.
2. Versatile Uses
Cannabis comes in different forms. One gram of dried cannabis is roughly equivalent to:
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5g of fresh cannabis
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15g of edible product
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70g of liquid product
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0.25g of concentrates
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1 cannabis plant seed
These can be used in various medical applications, including to fight chronic pain, migraines, anxiety, multiple sclerosis, and nausea. Cannabis can also be used to treat Alzheimer’s, PTSD, and cancer.
3. North American Growth
By 2021, it’s estimated that North American sales will make up 86% of the global market. Specifically, the U.S. legal market is projected to hit $18.1 billion by that time, while the Canadian legal market is expected to be $8.9 billion in that same year.
4. A Shifting Legal Landscape
Canada will be the first G7 country to legalize cannabis at a federal level.
In the United States, recreational cannabis is already legalized in nine states – but this could change swiftly as various states undergo referendums.
5. European Markets
In 2017, the legal market for cannabis is estimated to be just $0.11 billion, but by 2021 it will have expanded to $3.8 billion.
According to The Brightfield Group, growth will be quite impressive in Western Europe: Germany’s market will grow at a 284% annual rate, the Netherlands at 364%, and Spain at 334%.
6. Rest of the World
Although markets outside of North America and Europe will not see the same growth in absolute dollar terms, the legal cannabis market will still expand from $80 million to $350 million, led by activity in Latin America.
7. Pharmaceutical Research
Israel has a special place in the cannabis world – the country is world leader in medical cannabis research, and industry expects that it will eventually translate into a $1 billion export opportunity. That said, export plans have hit a recent road bump.
8. Investment Activity
Compare the start of 2018 to that of 2017, and you’ll see an impressive difference in investment activity.
For this we use Canada with its impending recreational legalization as an example: in the first six weeks of 2018, investment was up nearly 7x over the previous year. Further, the average deal size increased from $5.6 million to $18.7 million.
Meanwhile, the Canadian Cannabis Index rose 201% between January 2017 and January 2018.
9. How to Invest?
There are a variety of ways to gain exposure to the sector, including:
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Licensed producer stocks
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Biotech stocks
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Ancillary services stocks
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Licensed retailer stocks
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Cannabis ETFs
Regardless of how you play it, the legal cannabis sector is coming out of the dark – and it will be interesting to see how the industry takes shape.
Comments
All the enthusiasts claim it cures just about God Damned everything. So much bullshit in the world.
That's cause they don't feel it while they are high. Yah I'm somewhat skeptical also.
........nonetheless it should be completely legal and unregulated as dandelions.
don't you just hate the clickbait with "X reasons Y" titles?
In reply to All the enthusiasts claim it… by algol_dog
Alternate list
1. Dude!
2. It's a plant right? How hard could it be!
3. Obama is on board! Green lights!
4. What do you mean the crop failed! Can't it take the test again?
5. Finally some good shit!
5. Finally some good shit man!
5. Ever notice my hands are like huge dude? I just totally noticed that man.
6. Fuck taxes!
7. Oh fuck we need someone that knows about taxes.
In reply to adsf by DownWithYogaPants
Don't dispute the legality side. Just call it for what it is. A bunch of people who want to get toasted. The problem with all this stuff is the people who really need it the most, in order to break down their egos (e.g. neocons, extremists, and the like), will never touch it, while the ones who need it the least (e.g. the soft, timid and directionless) are the ones likely to engage in it.
Funny how life works ....
In reply to 1. Dude! by a Smudge by an…
The top crooks who were selling it when it was illegal were best positioned to continue to sell it after it was legalized. Just sayin'.
In reply to Don't dispute the legality… by algol_dog
Israel cornering the market says everything. This can't be good.
In reply to The top crooks who were… by PT
The smart money is buying up all the pizza and fast food stocks.
In reply to Israel cornering the market… by CPR Steps_30 p…
The real smart money is buying a marijuana stock under 2 pennies ...AGTK
In reply to The smart money is buying up… by freedogger
Up in smoke https://vimeo.com/245808486
In reply to The real smart money is… by stocktivity
IGFARBEN - Patented seeds, 38, via Bayer.
Big AG (Monsanto) joins Big PHARMA (IGFARBEN).
It won't be a natural weed much longer.
IGFARBEN's production plants weren't destroyed in Allied strategic bombing campaigns. Never targeted.
Even though, purportedly, the Holocaust was powered by Zyklon B.
IGFARBEN was broken up into Bayer, BASF, and others post WW2.
Bayer, BASF, and the others have been re-acquired by IGFARBEN, unopposed by any legal controlling regulatory authority.
Independent Growers using non approved heirloom seeds will be shut down.
It's the American Way.
In reply to Up in smoke https://vimeo… by bamawatson
The real smart money is shorting all the marijuana stocks knowing virtually all of them will go to zero and the ones that survive will see a 70 to 99 percent haircut in price. This is the greatest opportunity to short stocks this century and these idiots are talking about buying them instead of getting wealthy shorting these companies.
In reply to The real smart money is… by stocktivity
reason feds haven't made it legal is that BIG PHARMA(you know the big $$ monopoly) isn't having it
they still control corrupt congress with their 1% $$$$
funny how DUPONT got congress to make it illegal back in 50's when he couldn't sell his nylon rope because cannibas rope is SO MUCH STRONGER AND BETTER
of course that 'weed' isn't worth smoking
but today's weed has all the right science to make it worth while
In reply to The smart money is buying up… by freedogger
Earlier. Hearst Newspapers also was a major supplier of wood pulp paper.
Paper created from killing live trees and creating a pulp that was pickled and becomes paper. Horrible smell in the area surrounding the pulp mill.
Hemp paper was better and came from living plants that did not have to die to produce the paper.
Hearst through the media control ran a propaganda campaign on the evils of cannabis.
In reply to reason feds haven't made it… by sabaj49
The entire reason I even logged in was because I saw it mentioned Israel, and I wanted to laugh at the people that were going to claim weed was a Jew conspiracy. Thank you for not disappointing.
In reply to Israel cornering the market… by CPR Steps_30 p…
I'm trying to figure out why Israel got a mention at all.
And why isn't Argentina involved in the industry? Or not mentioned.
In reply to The entire reason I even… by jin187
Get a new avatar dude
In reply to Don't dispute the legality… by algol_dog
My weed stocks ain't doin' SHIT so fuck it...I'll just smoke the shit.
In reply to 1. Dude! by a Smudge by an…
Weed much less harm than alcohol and alcohol is legal, regardless if one used it or not.. so what is the buzz about..? Gotta grow this stuff free on the backyard, what taxes? ;)
In reply to My weed stocks ain't doin'… by runswithscissors
Funny material man...
In reply to 1. Dude! by a Smudge by an…
I used to think that the med marijuana meme was just a way to get high legally. Cannabis does IN FACT cure many diseases and its industrial uses are in the thousands.
Do a little research on the "endocannabinoid system". You will find that it is a burgeoning research sector andwill be the basis for an entirely new direction in medicine. The chemical parallels between the cannabinoids in Cannabis and the endocannabinoids in humans is remarkable. Look up RSO or Rick SImpson Oil on youtube.
It is also used as a palliative much more successfullly and without the side effects of pharma. Glaucoma, MS and a hundred other disease symptoms can be reduced with cannabis and the studies are just starting to be sanctioned, approved and legal so you can await a VERY bright future in the direction of cancer paliative medicine if not outright cure.
In reply to adsf by DownWithYogaPants
Unfortunately, I need to inform prospective investors that I shied away from this particular form of mindrot in the late 90s.
Good luck.
Happy buzzes.
NJOI.
PS
Grow up.
PPS More distraction...
In reply to I used to think that the med… by wildbad
Trying to look up a source. I live in a no MJ state. Many warnings about fake products. What about Endoca as a source? Severe depression is a "family" illness for me. I stopped using antidepressant about one year ago. I am fairly desperate at this point just to not feel despair 24/7. Thanks to anyone for info on an honest source.
In reply to I used to think that the med… by wildbad
Fly to Seattle for a nice vacation. Buy as much as you need and put it in your suitcase. Fly back to your state. WA doesn't care or check for the export of MJ even through airports. Obviously within reasonable limits. Talk to locals and shop suppliers about your specific needs.
CBD is a cannabinoid product that is very common. It is non-psychoactive, but still has the cannabinoid health/healing benefits and indeed, helps with a depressive mind state. CBD regulates THC so typical products are about 1:5 THC to CBD. You won't get high, but it will help with anxiety.
In reply to Trying to look up a source… by MoralsAreEssential
Thanks to anyone for info on an honest source.
if you live in a mj state, find some concentrated cannabis oil, aka rick simpson oil. it is the essence of the plant and may help you.
we live in a mj state, and their are licensed stores everywhere. you should have them as well and they can advise you. it's better than the pharma!
In reply to Trying to look up a source… by MoralsAreEssential
Cannabinoids have been shown as a treatment for symptoms of a number of diseases, not cannabis, or more specifically, THC. Just like hemp is good for manufacturing. You can do both through processing, and create products that have all the benefits of smoking dried weed, concentrates, or dabs, but won't get you high. Since nearly everyone that chooses to use it does so in a way that gets them high, and nearly everyone that sells it does so in forms that will get you the best high, the logical conclusion is that people just wanna get high. That stat of about a 60/40 balance in recreational to medical use is also bullshit. Everyone I know with a medical card went to the doctor just to get one rubberstamped so they could get high. It's probably more like 90/10, or even 97/3.
In reply to I used to think that the med… by wildbad
High, stoned, whatever. Vaguely suicidal. Temporarily checked out and off planet.
The manufactured opioid "crisis" should tell you that people can't handle the "reality" created for them.
MJ will be legal when crony Corporations have the tools to make billions off the corporate created misery of citizens.
In reply to Cannabinoids have been shown… by jin187
I know a woman who had inoperable cancer in her abdomen, that had paralyzed her. She had already been through multuple rounds of chemo, and was given 4 months. She rejected any further chemo
She started using marijuana, and the tumour disappeared. She regained full use of her legs again, and now leads a normal life.
In reply to adsf by DownWithYogaPants
Well Mr. Spicoli, I hope you at least brought some to share with the rest of the class!
In reply to All the enthusiasts claim it… by algol_dog
Dude! I'm so wasted!
That was my head!
In reply to Well Mr. Spicoli, I hope you… by kbohip
I'm going to go out on a limb and say that cannabis has cured* more than oxycodone ever has.
*which may be very little.
In reply to All the enthusiasts claim it… by algol_dog
Charlotte's Web Strain.
Watch the video.
Cry.
Legalize everywhere for any use.
In reply to I'm going to go out on a… by curbjob
YES
In reply to Charlotte's Web Strain. … by NVTRIC
Love you brothers for saying that. I believe in our miracles. I'm living proof.
In reply to YES by wildbad
Yo tambien. Ruined immune system from interferon injections while fighting HepC. RSO saved my life. I’m 72yo.
In reply to Love you brothers for saying… by a Smudge by an…
When I was undergoing chemo a decade ago the only thing that kept me from puking up anything I ate was MJ. The anti-puke Rx I was given did nothing. I also have never used MJ again since that time...do not like feeling weird, but it sure worked during the chemo.
In reply to Yo tambien. Ruined immune… by ljag
That's not setting the bar very high. You could probably replace cannabis with tobacco in that statement, and it would still be true. I'm surprised Big Pharma hasn't already acted to crush the weed market the same way Big Tobacco tried to crush the vape market.
In reply to I'm going to go out on a… by curbjob
You're the one full of bullshit. It stops, reverses, and cures cancer when taken in concentrated oil form. See it with my own eyes. (((Big Pharma))) hates it. You can take that your (((bank.)))
In reply to All the enthusiasts claim it… by algol_dog
Are you a medical doctor?
In reply to All the enthusiasts claim it… by algol_dog
Most habitual pot smokers are directionless retards.
I say, smoke up, easier for me to out-perform your lazy tokin' ass.
In reply to All the enthusiasts claim it… by algol_dog
The very nature of cannabis does seem to lead to fantastic stories from my fellow enthusiasts.
I took the precaution of getting my cannabis cancer tumour removal experience documented by a respectable non-cannabis using third party, so I'm still pretty convinced I didn't imagine it, ...
In reply to All the enthusiasts claim it… by algol_dog
Infomercials instead of articles/essays? Bad form.
adf
Know what just pisses me off about this whole conversation? Whoa, hey there, what's my name Skip? Sorry just plug that cherry hooter right in there here pie ho...
ho ho ho ho (cough) ho hooooo doggie!
So like I was saying like....oh wow man...like....do you hear music?
Are you guys feeling pizza? Oh man I am so totally munchable.
In reply to adf by DownWithYogaPants
"The swift regulatory changes taking place in the global cannabis sector are almost without modern precedent."
Dope and cryptos. A brave new regulatory world.
And don't forget a brave new world for taxes!
In reply to "The swift regulatory… by Pop3y3too
In CA they have put so many local and state taxes on it (not to mention paying the IRS, ironically) that it is more profitable to not conform with the law. In its best bureaucratic fashion the state of CA has also created a byzantine set of regulations dealing with growing, transporting, and dispensing. Since there have been no court rulings yet, no one actually understands how the rules really apply.
In reply to "The swift regulatory… by Pop3y3too
(10) Hemp
https://www.thecannabist.co/2018/04/12/mcconnell-hemp-farming-act-of-20…
Another shitpost. Weed is for loser simians thugs so they can make rap music and act like somebody gives a shit. Shit drug makes people retarded. Feel free to downvote USA conspiracy theory opposite backwards ass fight club treason military bashing bigot inferiority complex faggot retards. 31 billion is chump change. About as much as you chinese loving plastic crap lazy internet self righeous pigs blow on commie crap once a month. Go crazy fucks!
You ever try thinking for yourself? I'm guessing, not.
In reply to Another shitpost. Weed is… by Tom Green Swedish
No. I never did. I just shitpost like you. 3 billion strong shitpost army. Go fuck yourself zip zoo zobity bop bitch.
In reply to You ever try thinking for… by ZIRPdiggler
Pagination