US cannabis market
Companies like Canopy Growth (WEED), Aurora Cannabis (ACB) (ACBFF), and Tilray (TLRY) are expected to continue to build in the cannabis space. International markets will likely start with medical cannabis and then move to recreational cannabis. Currently, medical cannabis is the best bet to make inroads in international markets.
One big international market outside Canada is the US market. Companies (MJ) are hoping that the US market will warm up to the cannabis industry. Recently, we saw that New Jersey is closer to becoming the 11th state to legalize recreational cannabis.
Canopy Growth thinks that preparing to establish the cannabis market in the US must start well before it’s legalized at a federal level. In Canopy Growth’s recent earnings call, the company stated that hemp-based products are going to be critical in the US market.
Canopy Growth also alluded to Caribbean countries where tourists might visit to get access to cannabis-related drugs. In the Caribbean, Canopy Growth has made developments in Jamaica with its Tweed Brands. The latest developments might attract US patients.
The farm bill is an important development in the US that will likely pave the way for hemp-based cannabis products. In 2018, Senate Majority Leader Mitch McConnell sponsored an amendment to remove “hemp” from marijuana’s definition.
Details on the implementation of the 2018 Farm Bill can be found here.