...

 
Cannvas.Me
Sign Up For Free
  • Post Time Posted February 26, 2019
The global cannabis industry could be worth as much as $130 billion (US) in a decade if legalization expands the United States, Europe and Latin America, according to a report by New York-based investment bank Jefferies Group LLC.

Jefferies’ projection for the global cannabis sector is based on the prospect that in the coming years the U.S. and all countries in Europe and Latin America will legalize cannabis for recreational and medical purposes, as well as the potential penetration of other industry sectors in those markets, such as pharmaceuticals, alcohol, health, wellness and pet care.

“For the sake of prudency, and due to lack of visibility around the likelihood and timing of law changes in other markets, these projections only capture major markets (and U.S. states) where cannabis is currently fully legalized,” the wide-ranging 254-page report, authored by Jefferies analysts Owen Bennett and Ryan Tomkins, said. “Given the prudent approach to our base, we would flag a reasonable chance that numbers could actually come in ahead of our projections.”

Jefferies expects the U.S. to emerge as the biggest cannabis market in the world by 2029, with Canada following in second.

The firm initiated coverage on nine cannabis companies, including Canopy Growth Corp., Aurora Cannabis Inc., The Cronos Group, Hexo Corp. and CannTrust Holdings Inc. It views both Canopy and Aurora to be the “best placed to dominate on a global basis in the years ahead.”

There is some discrepancy about the expected success of the CBD market, CBD being the non-psychoactive component found in both cannabis and hemp. Jefferies only expects the global CBD market to be worth $4 billion (US) by 2029, while Cowen & Co released a report addressing the U.S. CBD market and expects to be worth at least $16 billion (US) by 2025.

Source: https://www.bnnbloomberg.ca/global-cannabis-market-could-be-worth-up-to-us-130b-by-2029-jefferies-1.1219522

This article is now marked as read.

Was this article helpful?

Review this article to help us continue creating and sharing relevant content.

Please note it may take up to two business days for reviews to be validated and published.

Reviews

Review this article to help us continue creating and sharing relevant content.

Write Review

Would you like to
make this review public?

Please disable your ad blocker to avoid issues using social plugins on Cannvas.Me. Thanks.
Close