It has now been three full years since Canada legalized the recreational marijuana market on Oct. 17, 2018. In the early stages, marijuana producers in the country were generating strong growth numbers due to the new segment of the market opening up (previously, only medical marijuana had been legal). But fast forward to today, and top companies like Hexo (NASDAQ:HEXO) have been struggling to produce consistent quarter-over-quarter growth.
A big reason: The role of the craft cannabis producer. Smaller companies focused on quality have been able to prevent these larger producers from dominating the industry. They've become thorns in the sides of the bigger players who may not be taking the threat seriously enough.