Cannabis Set to Make More Money Than Big Pharma, Tobacco, and Alcohol - RxLeaf
Top

Cannabis Set to Make More Money Than Big Pharma, Tobacco, and Alcohol

Emily Robertson
cannabis, economy, global trade, DEA, USA, Canada, legalization, EU, medical research, cannabis research

To the tune of $500 billion in global trade revenue, cannabis is the cream that is rising to the top of the financial world. 

We’ve reached the end of week one for Canada’s legalization of recreational cannabis. It was a big one! In fact, this could change the way that trade is done across the world. Canopy Growth’s CEO predicts that, between Canada and the growing legalization in the U.S., gobal trade will be changed forever. Could be, because the cannabis industry is set to scoop up a whomping $500 billion from current markets.

There are two reasons for this: for one, cannabis is stepping in to take the place of other products that no longer seem as appealing; and the more the industry grows, the more people will want to shift their investments.

Canopy Growth

Canopy Growth has already been making a name for itself in the cannabis industry. A $9.6 billion Canadian producer of medical cannabis, Canopy made a deal with Corona’s parent company, Constellation, earlier this year, which totaled roughly $4 billion in investments. This sparked conversations about the role that Big Alcohol money will play in growing the cannabis industry.

cannabis, Canopy Growth, economy, global trade, cannabinoids, Canada, legalization, USA, medical cannabis, recreational cannabis

Image credit: Canopy Growth

Now, with the legalization of Canada and its ties to the states through Constellation, Canopy is spreading south. It has officially shipped a legal batch of cannabis to the United States for medical research.

Co-founder, Chairman, and CEO of Canopy Growth, Bruce Linton, mentioned in a statement to CNBC, “Under [Drug Enforcement Administration] approval, we shipped, for the first time, legally – and I highlight ‘legally’ – cannabis from Canada to the U.S.”

cannabis, CMRC, cannabis research, medical research, USA, Canada, legalization, world economy, global trade, medical cannabis

Image credit: Ocean Beach Chronicle

This is just one month after Tilray, another Canadian cannabis producer, also announced they that had gained DEA-approval to ship cannabis into America. These products will be imported into California, for research purposes at the University of California San Diego’s Center for Medicinal Cannabis Research.

In his interview with Jim Cramer on CNBC’s ‘Mad Money’, Linton went on to explain that, “The DEA-approved partner, which we haven’t announced yet, can actually begin to do medical research, clinical trials if necessary, [and] create the data set that enables people to know when, what, where, and maybe it can become federally regulated in the U.S. with some input that way.”

cannabis, health benefits, cannabinoids, DEA approval, USA, Canada, legalization, research, medical research, medical cannabis

Image credit: chrisdorney

Will There Be a Global Market Disruption?

Linton went into detail about where he believes the disruption to the world markets will come into play. While some estimated $300 billion, Linton believes it’s significantly more than that.

On ‘Mad Money’, he explained, “We disrupt alcohol potentially, cigarettes potentially, in terms of smoking cessation. We really disrupt pharmaceutical, because whether or not you’re geriatric care, you’re dealing with arthritic conditions, you’re someone who can’t sleep, you’re going through an oncology treatment, I think you’re going to find cannabinoid therapies really hit there.” You don’t need to convince us!

cannabis, medical cannabis, research, medical research, USA, DEA, DEA approval, Canada, legalization, cannabinoids

Image credit: Kitsada Vector

Linton went on to say that these markets totaled up to around $300 billion so far. And when you add in illicit markets, you’ll disrupt another $200 billion (roughly).

The World is Watching and Ready for Change

Canada has offered itself up as the modern cannabis experiment for the western world, after Uruguay showed how cannabis legalization could be done. While we may have a small population that is often overruled by larger powers, we do have some potential to be a game changer for other countries with active cannabis advocates who, so far, haven’t seen any progress.

cannabis, Canada, European Union, medical cannabis, USA, Canada, legalization, cannabinoids, medical research, California

Image credit: Lukasz Stefanski

Linton claimed that countries in the European Union are starting to look at how cannabis legalization could benefit their country. Now that a major world player has legalized, and the United States may soon reschedule, other powerhouses across the globe need to consider rethinking their stance on cannabis – or risk falling behind in the global market.

Linton explained that countries in the E.U. are debating their own stance, and figuring out how to regulate, tax, govern, and “turn it into something that might be medicinal and for sure a much better formatted product for a party.” When it comes to governments, money talks. And cannabis is sure to bring in big money in the coming years. Cannabis stocks have done nothing but prove that green legalization brings in more green.

cannabis, economy, global trade, DEA, USA, Canada, legalization, EU, medical research, cannabis research

Image credit: Adrian Today

But it’s not as simple as taking the Canadian model, or the model in Uruguay, and imitating it. Every country has its own regulations, with alcohol and tobacco regulation shifting dramatically across the E.U. – even across the U.K, with Scottish drinking regulations drastically differing from England’s. While the U.K. has legalized medical cannabis in severe medical cases, and Germany has done the same, recreational legalization is sorely lagging in Europe.

Let’s see if this trade disruption helps other countries to change their minds.

Emily Robertson

Emily Robertson has been writing freelance and contract work since 2011. She has written on a variety of topics, including travel writing of North America and the growing legalized cannabis industry across the globe. Robertson has a master’s degree in literature and gender studies, and brings this through in her writing by always trying to explore different perspectives. Born and raised in southwestern Ontario, Robertson moved to Glasgow, Scotland in 2016 to undergo her doctorate in Scottish Literature. She lives in the West End with her dog, Henley.

No Comments

Post a Comment