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Cannabis stocks are off to a hot start to the year, but can that momentum be sustained?

Thanks in large part to optimism surrounding the Georgia Senate run-off election results that will give the Democratic Party control of Congress in addition to the White House, cannabis has been one of the biggest winners of the new year, with the valuations of most pot stocks trading around record highs.

Major U.S. cannabis operators Curaleaf Holdings Inc., Trulieve Cannabis Corp., and Cresco Labs Inc. have climbed 19 per cent, 31 per cent and 26 per cent, respectively, in that time. Meanwhile, smaller players have also posted similar gains.

Now is an excellent time to be in the infused products game. In the next four years, experts predict that legal retail sales of THC-infused products alone will surpass $21.5 billion. CBD is becoming more mainstream every day, and quality infused products are pulling in A-list investors. 

Still, creating a successful infused product is very much a science —it does not happen by accident. Diligence, forethought, and adaptivity are the names of the game for any entrepreneur hoping to share in the industry’s growth and success. Before you cash out your savings, make sure your business plan answers these three essential questions. 

The latest report from the Canadian Centre for Policy Alternatives (CCPA), titled The Golden Cushion, lists Canada’s top-paid CEOs in 2019. On average, the top-100 CEOs made 202 times what the average Canadian worker earned.

Big Gains For Cannabis Stocks

Are Cannabis Stocks Good For Long-Term Investing?

The global cannabis market is expected to continue climbing to new heights over the next few years, according to a recent report.

The report from Arcview Group & BDS Analytics, that said that the global cannabis market is expected to reach to $42.7 Billion by 2024.

“That is a true testament to just how popular cannabis is among consumers and the ongoing impact of new markets coming online and maturing,” the report reads. “The possibilities are boundless as political progress opens up more markets across the world, and struggling markets sort out their regulatory framework.”

This coming year will bring major consumer-driven shifts to the hemp industry. Experts estimate that the CBD market is set to reach $18 billion by 2025 and include CBD for all uses, including topical, pet products, pharmaceuticals, and nutraceuticals. 

Here are some industry trend predictions I have for 2021: 

“This is just another way for a celebrity to leverage their own brand equity and to be crass to make money,” according to one industry insider.

This year, the cannabis world has welcomed so many famous people. Some decided to become part of the industry as brand ambassadors, while others launched their own brands. Musicians, actors and athletes have expressed their love for the plant.

But why now?

Was it because the stigma around cannabis has faded more than ever before? Or, was it because of industry growth, which thus presented lucrative opportunities?

The year 2020 was a dud in many, many ways due to the pandemic. However, it was a record year for the emerging cannabis industry.

Cannabis entrepreneurs around the globe sold a record amount of cannabis and cannabis-infused products.

Unfortunately, no countries legalized cannabis for adult use in 2020, but a number of countries either allowed medical cannabis industries to launch or expand.

Many cannabis industry projections from years ago focused on the year 2020 and virtually every one of those projections proved to be too conservative.

Employment in cannabis pre-2020 could be seen as more of a job, whereas now, people see the industry as a true career investment.

This year was a rollercoaster ride for the cannabis industry, which had its fair share of highs and lows. There were legalization breakthroughs, while various cannabis companies enforced massive layoffs.

However, there were also those that did quite a bit of hiring.

When investors talk about cannabis stocks, Canadian players Aurora Cannabis (NYSE:ACB) and Canopy Growth (NASDAQ:CGC) come to mind. But in 2020, U.S. cannabis companies not only proved their potential, but outperformed their Canadian counterparts. Two such companies are Illinois-based Green Thumb Industries (OTC:GTBIF) and Florida-based Trulieve Cannabis (OTC:TCNNF).

The South Carolina Department of Agriculture will accept applications for hemp farming permits for the 2021 growing season from Jan. 1 through Feb. 28, 2021.

The state's Hemp Farming Program has grown from 20 farmers in 2018 to 265 farmers in 2020 - and each year, the program has changed as state and federal laws changed. When the federal government approved South Carolina's State Hemp Plan in April 2020, the program entered a new period of regulatory stability, one that SCDA expects to continue in 2021. The agency now has six full-time staffers devoted to hemp regulation.

Requirements to receive a hemp farming permit include:

The year 2020 dawned with thousands of people lined up, some overnight, waiting to be among the first to buy legal recreational marijuana in Illinois.

As the long, strange year comes to an end, people are lined up at food banks, to get coronavirus nasal swabs and in some cases, to be among the first to receive a vaccine that may mark the beginning of the end of the COVID-19 pandemic.

And people are still buying weed. Lots of it.

Now more than ever before, brands across all industries are attuning to the fact that an in-depth understanding of their audience’s interests and lifestyles is key to robust sales and longevity. The cannabis industry posted that message loud and clear this year, with one online cannabis marketplace, Jane Technologies, Inc. (which partners with over 1,600 dispensaries and brands across 33 states), seeing online Green Wednesday profits for 2020 up 241% over 2019.

The best marijuana stocks to invest in for 2020 might actually be a surprise to some investors watching cannabis stocks. In the past year pot stocks on your December 2020 watchlist have been delivering gains for shareholders since the March crash. In fact, the American cannabis industry is going into 2021 with strong revenue growth and more expansion opportunities in states that are establishing legalization. Currently, there are 9 MSOs with market caps above $1 billion and more IPOs coming in 2021. Along with a surge of newly public companies is also the increasing mergers and acquisitions that are taking place this year and into 2021.

Up 64% and 34%, respectively, Tilray (NASDAQ:TLRY) and HEXO (NYSE:HEXO) are among the best-performing cannabis stocks in the industry over the past three months. And the momentum seems to be just getting started, as they both have massive upside potential going into 2021. 

Columbia Care Inc.  (OTCQX: CCHWF) is buying privately-held Green Leaf Medical, LLC  for approximately $240 million with the potential for additional performance-based milestone payments. Columbia will make a payment of $240 million, consisting of a cash payment of $45 million with the balance of $195 million being satisfied by the issuance of 43,900,144 common shares of the company. The deal is expected to close in the summer of 2021 and Columbia said the deal is immediately accretive.

Pests and contaminates are a given in the cultivation of cannabis, and most standards developed to control these on other agricultural products don’t apply. This is why the U.S. Pharmacopeia has stepped in to provide analytical methods and risk-based limits for the industry to help protect public health, including looking at how cannabis is grown, not just at how it hits the shelves.

As the cannabis industry expands into the rest of the U.S. market, traditional manufacturers and other businesses are getting involved. For manufacturers, there is an opening for logistical, quality, and production help. Whether it’s in healthcare or packaging, outside industry is now applying traditional business methods to cannabis to further legitimize its place in the contemporary market.

Recently, Cannabis & Tech Today sat down with Roger Throckmorton, Chief Brand Officer at International Plastics in Greenville, SC, to discuss better packaging options for the cannabis industry and why the “barrier bag” is key.

In 2020, cannabinoid production undoubtedly continued to steal the hemp show. According to a recent survey by market analytics firm Hemp Benchmarks, nearly 90% of growers opted to cultivate hemp either for cannabidiol (CBD) or cannabigerol (CBG).

But excitement has been simmering for another segment of the hemp market: hemp fiber.

With the potential to produce both bast and hurd that can be the basis for thousands of products, hemp fiber holds tremendous promise for the industry, and it’s where many industry leaders believe the future of hemp lies in the long-term.