Feb 28, 2023
During the last year, we have noticed increasing cannabis sales from international markets all over the world.
Going forward, we expect the trend to become more significant and want our readers to be aware of this. Today, we want to highlight 5 international markets that we expect to continue to attract North American cannabis operators and consider these countries to be attractive long-term growth opportunities.
Germany – The country is our favorite cannabis market in the European Union (EU) and we believe the industry is barely in the first inning of a major growth cycle. In the near future, we expect recreational cannabis to be legalized in Germany and we expect the development to create a domino type effect in other EU countries. The country has a large population and we will monitor how the industry continues to advance.
Australia – Although we are bullish on the cannabis opportunity in Australia, the market has not been the biggest growth driver for companies that are levered to it. We believe Australia will become a more attractive market when other countries in the Southeast Asia region legalize some form of cannabis.
Mexico – We consider Mexico to be the jewel of the Latin American cannabis industry and hope to see clarity on the government’s plan to legalize cannabis. So far the legislation has been met with resistance from the Senate and we believe this has put pressure on companies with leverage to the Latin American market. If cannabis is legalized in Mexico, it would be a major catalyst for the cannabis sector and our readers should be aware of this.
Israel – We consider Israel to be one of the most attractive international cannabis markets and have noticed rising sales from companies which are levered to it. When compared to Canada or the US, the cost to cultivate a gram of cannabis is much lower in Israel. As a result, the economics that are associated with cultivating cannabis are much more attractive in Israel and our readers should be aware of this. Another pillar of our thesis on the Israeli cannabis industry is related to its location. By having leverage to Israel, cannabis companies can ship products faster and cheaper to the EU.
France – Last year, 31 senators in France co-signed a letter that requested authority to launch a consultation process to propose legislation to legalize recreational cannabis. The senators believe that decriminalization is not the right direction for the country and argued that legalization is a social issue that should be adopted by public authorities. Although we expect the process to legalize recreational cannabis in France to be extensive and time consuming, we believe the push by the senators shows how sentiment has changed in an ultra conservative market.
https://technical420.com/cannabis-article/these-are-5-international-cannabis-markets-that-you-need-to-be-following/#
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