Stifel Sees $200 Billion Global Cannabis Market Over Next Decade
Alphria
The global cannabis market will reach $200 billion over the next decade, up from the $8 billion the industry brought in in 2018, according to a new note from analysts at Stifel.
"Cannabis represents one of the most significant growth opportunities in consumer goods of the next decade with our estimate suggesting a $200 billion global opportunity, up from the roughly $8 billion we estimate that was realized in 2018 in federally legal markets and U.S. state licensed sales," analyst W. Andrew Carter wrote.
The firm is still bullish on market leader Canopy Growth (CGC) - Get Report despite its disappointing fourth-quarter results and outlook. The firm sees a "robust revenue opportunity" for the company amid elevated costs of achieving growth. But the easing of legal hurdles will not only help the company, but the industry as a whole as well.
"Against this significant growth opportunity and large industry slowly emerging from the shackles of prohibition, the news flow remains robust from operators, regulators, policymakers, and advocates all seeking to extract value and shape the narrative of this evolving category. We offer our July update which reviews recent industry events while offering some updated data points, estimates, and our outlook for the global industry," Carter wrote.