Next Stage Cannabis Stocks in the Spotlight
CannabisNewsWire Editorial Coverage
DENVER, May 1, 2019 /PRNewswire/ -- Projections for the cannabis markets are staggering, yet there's evidence that the lofty estimates may be understated.
- Cannabis projections often fall far short of actual sales growth.
- Cannabis-infused beverages looks to be next area of explosive upside.
- Beverage and cannabis companies striking deals to gain market access.
- New technologies could snag significant market share.
Once viewed as wild conjecture for the future of cannabis markets, forecasts in 2015 fell severely short of actuality. At that time, consensus was that Canada could reach CA$2.8 billion in legal sales by 2020. Sage prognosticators now say that the market may exceed CA$7 billion in 2019. Catering to the tastes of market demographics, intense interest is now focused on the cannabis-infused beverages market. Not even legal in Canada until this fall, the infused beverage market is already pegged to reach a mind-boggling CA$4.4 billion within five years.
Joining the ranks of the majors to meet this titanic demand, Sproutly Canada Inc. (OTC: SRUTF) (CSE: SPR) (SRUTF Profile) announced a joint venture with Moosehead Breweries, the largest and oldest independent beer company in Canada. Cannabis colossus Tilray Inc. (NASDAQ:TLRY) announced a research partnership into infused beverages and is bringing in executives with backgrounds in the beverage industry. The maker of Corona and Modelo beer increased its stake in Canopy Growth Corp. (TSX:WEED) (NYSE:CGC) to 38%, spurring speculation of cannabis-infused beverages to come. HEXO Corp. (NYSE:HEXO) (TSX:HEXO) entered a joint venture with Molson Coors Canada to produce CBD-infused beverages. And New Age Beverages Corp. (NASDAQ:NBEV) is anticipated to begin roll out of Marley+CBD-infused drinks in four targeted U.S. states.
To view an infographic of this editorial, click here.
Soothsayers seem to consistently underestimate the warp-speed of public acceptance and the velocity of uptake of cannabis products. As marijuana muscles into the mainstream, usage among all age groups is on the upswing. However, among the most coveted 18-34 demographic, there's an explosion of acceptance as these users mature in a world where cannabis is common. Millennials are about three times and Gen Z about four times more likely to use cannabis than aging Boomers. Forward-leaning cannabis companies are full throttle in product and brand development to corral this coveted demographic and capture market share, now and for decades to come.