According to Forbes, international marijuana sales are expected to reach $35 billion in 2022. That's a whopping 2500% jump since 2021, when sales were only 1.4 billion. In fact, the CAGR of this market from 2022 to 2028 is 16.6%, and there could be more gains to come. So it will be no surprise if we see marijuana stocks rebound to higher levels than ever before or even potentially break above expectations.
Why does pot remain such a red-hot sector despite recent market corrections?
Nearly half of Americans now have access to legal recreational cannabis, which is why, when the pandemic struck, 50% of cannabis users drastically increased their consumption. This easy access is partly because of the recent boom in delivery and online ordering. Consumers enjoy the e-commerce options created by the pandemic so much that cannabis delivery jumped by 60% in the first half of 2021.
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Certainly, global events have given the industry a boost, but another catalyst is the growing acceptance of recreational marijuana.
Over 18 states in the U.S. have legalized recreational cannabis use as of April 2022. Moreover, as a survey has shown that 91% of adults prefer legalizing marijuana, we could soon see marijuana legalization spread in North America and globally.
At the same time, investors are concerned that certain obstacles in legalization movements, particularly in the U.S., and pot stocks taking a beating in 2020 will make it more difficult to recover. So there is a general sense of bearishness in this industry. But the fact remains that cannabis fundamentals remain strong, so it may be prudent to consider some of the best industry options before the price rises again.
The three companies in the marijuana industry whose future looks bright according to insiders are Innovative Industrial Properties (NYSE:IIPR), Trulieve Cannabis (CNSX:TRUL), and Village Farms International (NASDAQ:VFF).
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Featured Image: Pixabay @ geralt
