Investments in the Cannabis Market
North America
- Archview states that the Canadian cannabis market went from 600 million in 2018 to 2 billion in 2020, and according to Headset, this market will be able to reach 5 billion in value in 2022.
- Canada records a monthly revenue of over 270 million dollars, for a total of 3.24 billion every year.
- Considering that the US market is the most important in the whole world, legal cannabis generated revenue of 18 to 20 billion in 2020 alone. According to some, it is set to exceed 30 billion dollars in 2022. It is worth more than the entire NBA business.
- The US cannabis market is projected to reach 50 billion dollars by 2026.
Europe
- According to estimates from the European Industrial Hemp Association (EIHA), the European CBD market is valued at 2 billion euros.
- According to The Brightfield Group, the European market will have grown to 3.8 billion dollars by 2022. Growth will be impressive especially in Western Europe: the Spanish market will grow at an annual rate of 334%, the Netherlands at 364%, and Germany at 284%.
- The cannabis market reached approximately 400 million by the end of 2021, as estimated by a 2020 Prohibition Partners report, which forecasts growth exceeding 3 billion dollars by 2025 with a CAGR of 67%.
Global situation
- Various studies show that the global cannabis market reached 22 billion dollars in 2020, with a CAGR of 13.9% for the subsequent 5 years.
- Secondo Arcview Market Research e BDS Analytics, il mercato della cannabis ha raggiunto un valore di 12 miliardi di dollari nel 2020 e raggiungerà addirittura i 630 miliardi entro il 2040. La maggior parte di questa crescita si potrà vedere in Europa e in Nord America.
- According to Bloomberg, the global market will be worth $91.5 billion in 2028, with a CAGR of 26.3% over this period.
- According to Businesswire, a global total of 90.4 billion dollars is projected for 2026, with a CAGR of 28% over 5 years.
- According to a study by The Brightfield Group, the global size of the legal cannabis industry increased from 7.7 billion dollars to 31.4 billion dollars by the end of 2021. Currently, the recreational market constitutes only 37% of the global total, but by the end of the year it will rise to 57%.
Conclusions
In conclusion, as can be inferred from this data, there is still debate among analysts at the moment, there are many doubts, and there are truly many issues to resolve; consequently, the hypotheses remain uncertain. But as can be clearly understood, we are dealing with an increasingly profitable sector, and investments in the cannabis market in the coming years could truly prove to be a winning choice. Unfortunately, some still remember the 2017/18 case, when some investors got burned by this sector, which however has changed and grown significantly in recent years.
Tips for investing in Italy
Dedicate only a small percentage of your portfolio to this type of investment, no more than 5%. Have a time horizon between 5 and 10 years and consider a high tolerance for losses, as it is, as we have already said, a still very volatile sector. Finally, avoid buying individual companies, but rather use ETFs, as the first choice exposes you too much to specific risk and becomes more of a gamble than a smart investment. Did you like our article? Contact our team right away for more information and follow our blog for all updates! Also follow our Instagram, Facebook, and YouTube pages to discover all the news from the Harvin world.
