Following the opening of Canada’s recreational adult-use marijuana market last October, top marijuana stocks could capture billions of dollars in sales as consumers shift their spending from the black market to licensed marijuana retailers. The potential to profit from pot is sparking a green rush of investment that has some marijuana growers already benefiting more than others.
First, some background
Medical marijuana won approval in Canada years ago, but it wasn’t until a regulated licensing system was established in 2014 that medical marijuana sales there really took off. Canada’s medical marijuana market hauled in about 600 million Canadian dollars in sales in 2018, but that only hints at the opportunity associated with serving recreational marijuana users. Canadians spent over CA$5 billion on marijuana for recreational use last year.
Canada’s recreational adult-use marijuana market opened for business on Oct. 17, 2018, and sales are already brisk. Product shortages crimped recreational sales initially, but the CA$152 million in adult-use sales nearly matched the CA$154 million in medical marijuana market sales during the fourth quarter, according to Statistics Canada.
Ranking the top marijuana stocks
Over 100 growers are licensed to participate in Canada’s cannabis marketplace, but Canopy Growth (NYSE: CGC), Aurora Cannabis (NYSE: ACB), Aphria (NYSE: