October 8, 2018

2019 Cannabis Trends Every Investor Should Know

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We look at several predictions for the cannabis market in 2019 and what they mean for investing in cannabis.

As fall arrives, as summer breaks end, it’s time to look ahead and start planning for next year. Has the time come to diversify your portfolio with some cannabis companies’ stocks? 2019 will see the first full calendar year of cannabis legalization in Canada and further US states moving towards recreational legislation. We look at several predictions for the cannabis market in 2019 and what they mean for investing in cannabis.

DEMOGRAPHIC DOMINANCE WILL REMAIN WITH MILLENNIALS. FOR NOW.

Millennials make up more than 50% of legal cannabis consumers and are the majority of people applying to work in cannabis. As Baby Boomers and Generation X decline from the top of the market, the next generational demographic, Generation Z, are filling in at the bottom.

One of the social attributes inclining Millennials towards cannabis is growing up as the last strains of Just Say No were petering out and seeing the conversation moving towards medical usage based on scientific research. Generation Z have not only benefited from that shift in conversation but 90% of them were born and raised in an America allowing, to one degree or another, the medical and recreational use of cannabis.

More citizens, desiring healthy cannabis use, entering the market when they reach legal age is one of the foundations on which cannabis growth is built over the next decade.

NATIONS WILL WATCH CANADA’S PROGRESS CLOSELY AND CONSIDER THEIR POLICIES

As Canada undertakes its freshman year of legal cannabis, other nations will watch closely. Their G7 partner, the United Kingdom, classed by the UN as the world’s largest producer of legal cannabis, has started allowing cannabis derived medicinal products for prescription. Other markets repeatedly show that medicinal use is the first step to greater acceptance.

Former Mexican president Vicente Fox has said that cannabis should be included in NAFTA as any other commodity would be. Citing the social benefits of converting criminals to legitimate businessmen and Mexico’s position as a dependable major supplier of fruit and vegetables to the US and Canada as reasons to consider it.

More nations adopting a research lead approach to medical usage and updating legislation accordingly is a boon for medical marijuana companies’ stocks, providing a bedrock for further investment when recreational use follows.

SMOKING CONTINUES, BUT EDIBLES ARE RISING

A Deloitte report looking at the Canadian cannabis market after legalization found an industry ready to bloom and cannabis companies’ stocks ready to bloom along with it. In particular, the report predicts that 60% of likely cannabis consumers will try edibles once legal. Smokable cannabis expenditure is estimated at $5 billion in 2019 but, once legalized and established, they’re estimating the edibles sector will be between $12 and $22 billion once they are added to national legislation.

Operating under pharmaceutical and food production codes of conduct can be constricting, but consumer desire for healthy, edible cannabis will encourage entrepreneurs to try and help grow marijuana companies’ stocks.

Bloomberg Business

"Cannabis Company Backed by Retail Fortune Eyes East Coast Expansion"

The Province

"Opinion: The future of cannabis retail is simple, integrated, and welcoming"

CBC Business

“Unlike big names in production at centre of cannabis frenzy, company plans to focus on retail side of things”

Tech Startups

"Former Victoria Secret executive raises $85 million for cannabis startup…"

The Growthop

"Green Growth Brands completes upsized raise of $85 million to satisfy investor demand."

Benzinga

"Green Growth Brands announced it has completed a raise of C$85 million ($65.7 million) in a private placement…"

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