Invest Counter-Cyclically: Cannabis Market to Increase Tenfold

Last Updated: 5. November 2023By

The situation is difficult. The basic dilemma is: how can the Israeli army search for terrorists in the Gaza Strip without endangering the civilian population and hostages held by Hamas? By now it is clear: the ground offensive is running and there are already the first killed hostages. The fear of an escalation in the Middle East is palpable, also on the stock markets.

At every corner one can smell cannabis Then there is another segment in the health market that is currently completely out of the stock market, but which one stumbles across at every corner in New York. My colleague Daniel Wilhelmi is currently in New York, where cannabis is completely legalized and legal sales of recreational cannabis is set to begin in late 2022. He reports first-hand that the local cannabis boom is absolutely real. „In Manhattan and New Jersey you see and smell cannabis at every second corner,“ he told me this week by videocall. Cannabis shops are popping up in New York, New Jersey and many other US states like mushrooms.

Cannabis market: from $43 billion to over $444 billion One can approve or disapprove of this development. But stop it? The cannabis boom in the US and, with a time lag, in Europe can no longer be stopped. A new analysis by Fortune Business Insights predicts that the global cannabis market will grow from $43.7 billion in 2022 to over $444 billion in 2030. That is a tenfold increase. The only decisive question for investors is therefore: are you in or not?

On-site research in the US Today the cannabis market is a completely different market than in the first cannabis boom from 2017 to 2019. But many investors still think in the categories of the first cannabis rally and buy the old-known names of the former Canadian cannabis stars, such as Canopy Growth or Tilray Brands.

The story of the Canadian cannabis market is over for some years now. The market is on the ground and the shares of the former stock market stars as well. In Canada, overproduction of cannabis led to devastating price drops from which most Canadian cannabis companies have not yet recovered.

USA: the largest cannabis market in the world Conclusion: the real boom market are the much bigger USA, now the largest cannabis market in the world. The USA is the growth center of the cannabis sector. This will not change in the coming years, after the German federal government was unable to push through full legalization in Germany and thus the legalization wave in Europe runs slower. But there is an established cannabis company that specializes in the US market and is set to become profitable in 2025.