As recreational cannabis legalization gets set to finally happen there is no denying that the cannabis industry is going to be big business. Cannabis legalization will open a lot of different markets in both the recreational and medical areas. Dry flower, oils and concentrates, vaping, edibles and more all offer opportunities for companies to grow within an expanding industry. As such, there will be many players trying to stake a claim. With cannabis markets worldwide estimated in value at over $57 billion dollars, there is a lot of room for companies of all sorts to find their niche.
As with all games, there are many ways to play, but we’ve been seeing two trends stand out from the rest. Large licensed producers such as Aurora or Canopy Growth have gone about becoming the biggest players quite rapidly by focusing on size and market share. Smaller companies might find it difficult to compete on these terms and are thus looking at smaller niche markets to diversify. Within the alcohol industry, the large LP’s seem like a Molson or a Budweiser brand, while much of the rest of the cannabis industry is made up by smaller licensed producers, similar to craft beer