5-year forecast for the cannabis industry

Today I look up the latest information on the marijuana market:

    1. A recent report that shows where the cannabis industry is headed by 2025.
    2. An email from a viewer about a cannabis ETF survey from a previous episode.

Excellent sales in the cannabis industry

Last year was a big thing for cannabis.

Despite the COVID-19 pandemic, cannabis producers and traders have seen a huge sales boom of over $ 20 billion in the US alone.

The main reason for this is that despite widespread economic shutdown, cannabis was considered “essential” in most of the states where it is legal.

This meant the pharmacy stayed open, with most developed roadside collections or even delivery options for buyers.

As a result, the cannabis business boomed while other industries slowed down until they crawled or stopped. It’s the middle of the year, but you can see if 2020’s strength was a passing change or a carry trend.

According to a recent study by cannabis data company New Frontier Data, cannabis sales peaked in the third quarter of the final quarter. This can be seen in the graphic above.

Total medical device and adult sales exceeded $ 5.8 billion per quarter.

It was almost $ 1 billion above the highs of the previous quarter.

However, future projections of the cannabis market suggest that 2021 could be even better for the cannabis industry.

Total cannabis sales for the first quarter of this year were $ 5.8 billion, comparable to sales for the third quarter of 2020.

Adult cannabis sales reached $ 2.7 billion for the quarter ended March 2021, the highest in recent history.

However, New Frontier expects cannabis sales to continue to top $ 6.1 billion in the second quarter.

Of that, $ 3.3 billion was in adult sales and over $ 2.9 billion in medical sales. This is a new quarterly record for this industry.

The reason for the prediction is simple. These numbers will amplify as customer demand persists and more states open their doors to cannabis sales.

But what does it mean to look forward to it?

See the diagram above. Taking into account current trends and new states entering the battle for legalization, the cannabis market could reach nearly $ 43 billion by 2025 and is growing steadily every year.

Remember, medical cannabis is currently licensed for sale in 38 states and the District of Columbia.

Of course, if any of the remaining 12 states choose to add medical cannabis legality, that number will continue to fuel sales in the cannabis industry.

Forecast of the cannabis industry

The point here is that while some legal headwinds are crowding out cannabis stocks, i.

You have to keep in mind that stock prices will rise and fall. You want to participate in the game for a long time. Day trading cannabis stocks are not a good idea because of their short-term volatility.

About Cambria Cannabis ETF (NYSE: TOKE)

Recently Emailed Joe My Team Says:

Hello mat. A great segment of recent pot ETFs from another viewer’s email. Why didn’t you include TOKE in your video update? Please let me know. – Joe

Good question, Joe.. Thank you for your concern.

Cannabis Exchange Traded Fund (ETF) AdvisorShares Pure US Cannabis ETF (NYSE: MSOS) As part of the viewer’s question, it compared AdvisorShares Pure Cannabis ETF (NYSE: YOLO) and ETFMG Alternative Harvest ETFs (NYSE: MJ).

Joe wondered if I was being interrupted Cambria Cannabis ETF (NYSE: COUNTRY). There is a reason.

The simple answer is no.

TOKE is among other ETFs

cannabis ETF chart

As you can see in this graph, these cannabis ETFs work in lockstep.

The movement of TOKE (light blue line) is similar to that of YOLO (green line), MJ (red line), MSOS (purple line).

However, TOKE’s response rate is the lowest (43.1%). The other three are over 50% – YOLO and MJ are over 60% profitable.

So including TOKE says the same thing that we did in the previous video. MSOS and TOKE aren’t bad investments to get into the cannabis market, but there are better options.

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  • Cannabis watchlist details.
  • In our monthly live chat with me, we talk about cannabis inventory, the cannabis sector, and more.

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Safe trading,

Clark_Sig

Matt Clark

Survey Analyst, Money & Market

Matt Clark is a research analyst Money & Market. He is the host of our Bull & Bear podcast and The Latest on the Marijuana Market. Before joining the team, he spent 25 years as a research journalist and editor on everything from politics to business.

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