Amid the COVID-19 pandemic, a new report expects the Canadian recreational marijuana industry to double its income this year and grow by more than 500% by 2025. Peaks.
In October 2018, Canada was the country where recreational hashish was legalized nationwide, prompting a massive uptick in hashish stocks such as Canopy Growth (CGC) and Tilray (TLRY), and also sent ETFs to the growing hash industry.
However, the initial excitement temporarily hit a jackass as the nascent industry grappled with the reality of advertising.
“Supply bottlenecks, peak costs despite oversupply and a shortage of physical outlets have failed to keep many consumers out of the black market,” Brightfield Group said in its August 2020 report. on “Cannabis in Canada”. Brightfield is a cannabis- specialized market research company founded in Chicago.
In addition, corporations have faced situations of logistical demand and a strict regulatory structure, and companies from all walks of life suffered large monetary losses in 2019, in a fall in hashish and ETF stocks.
Despite COVID-19, 2020 saw the launch of the “Cannabis 2. 0” industry, which expanded its product levels to include products, extracts, vaps and topics, which were not widely available. Cannabis 2. 0 has realigned the industry to adopt a “more prudent and strategic technique for product development, distribution and marketing, as well as to tighten the belt and leadership adjustments among many authorized manufacturers in Canada,” the report says.
Another driving force for expansion is the opening of very restrictive provincial markets in the past. Ontario allowed only 24 outlets in the first year of legal marijuana use, according to the report, there are now more than a hundred stores and 50 more. The% is expected to be authorized before the end of the year.
The Brightfield Group estimates that the recreational marijuana segment of the hash market is expected to double 2019 revenue from $881. 9 million to $1. 7 billion this year. This expansion occurs despite an inadequate number of dispensaries, especially in populous provinces; overly restrictive regulations; and higher production costs, adding the highest taxes, making it difficult to compete with the black market.
However, 2020 saw the opening of more outlets, the lifting of bans and the valuation of brands entering the market. These points have led Brightfield to expect the recreational market to accumulate by 512% to $5. 4 billion through 2025. marijuana, the entire hashish industry is expected to have revenues of $5. 8 billion.
ETFs in the hashish industry include:
· ETFMG Alternative Harvest ETF (MJ), which focuses on hash industry companies.
· AdvisorShares Pure Cannabis ETF (YOLO), the first actively controlled ETF with which it tracks hash corporations exposed in the United States.
· AdvisorShares Vice ETF (ACT) owns alcohol, tobacco and hash corporations that conduct legal business in the United States.
· GlobalX Cannabis ETF (POTX) provides exposure to corporations active in the hash industry
· Indxx MicroSectors Cannabis ETN (MJJ) is a publicly traded note that tracks corporations that supply products or the like for medical or commercial use of the hash industry.
· Indxx MicroSectors Cannabis 2X Leveraged ETN (MJO) is an ETN that provides double exposure to ETN Indxx MicroSectors Cannabis.
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