Although the cannabis sector has been under considerable pressure since late 2021, the legal global landscape continues to improve and we believe the sector is prime to bounce back.
From Germany to Brazil, major global economies are jumping on the legal cannabis bandwagon and we will monitor how these emerging markets continue to advance.
Earlier last week, the German Health Ministry said it will start holding expert hearings on various aspects of the legalization of recreational cannabis. After the announcement, it was reported that the German government is working to legalize the sale of recreational cannabis and is aiming to have legislation ready later this year.
The day after the German Health Ministry’s announcement, Brazil’s Superior Court of Justice authorized the cultivation of medical cannabis for three people. We consider the development to be significant due to the size of the population (210+ million) and how it contemplates the use of cannabidiol (CBD) and allows for the cultivation of medical cannabis for patients who have a prescription.
We are favorable on the traction that legal cannabis is generating in the European Union (EU) and Latin America. We believe these regions are in the early innings of a hyper-growth cycle and are monitoring how other countries respond to these developments.
Over the next year, we expect several large global economies to pass some form of legal cannabis legislation. We consider the United States (US) to be the world’s most attractive cannabis market and believe that the passing of any pro-cannabis legislation is the most significant potential catalyst for the sector.
Currently, there are a handful of companies with leverage to the EU, the US, and Latin America. Over the next year, we expect the number of operators that are focused on these markets to increase and believe our readers should be aware of this.
If you are interested in learning more about the advancement of the global cannabis industry, please send an email to firstname.lastname@example.org with the subject “Leading International Cannabis Markets” to be added to our distribution list.