3 Major European Cannabis Markets That Could Boom In 2021

2020 was a challenging year for the global economy and countries are looking to find new taxable revenue streams to bounce back from the COVID pandemic.

During the early months of the pandemic, the European Union (EU) was considered to be a hot spot for the pandemic and countries adopted lockdown measures to slow down the spreading of the virus.

We expect the cannabis industry to continue to be a beneficiary of the COVID pandemic and believe that additional countries in the EU will pass cannabis legislation in an effort to bring in additional taxable revenue.

The last few years have been significant for the cannabis industry in the EU and this is a trend that we expect to continue. We believe the EU cannabis industry is barely in the first inning of a major growth cycle and are of the opinion that the COVID pandemic will serve as a catalyst for growth for the entire market.

Today, we have highlighted 3 EU cannabis markets that are expected to report strong growth in 2021, as well as some of the companies that are levered to these opportunities. We believe these markets are strategic in nature as they provide businesses with a launchpad into additional markets in the EU.

Is 2021 the Year for Recreational Cannabis in Germany?

Germany is the largest cannabis market is the EU and we are favorable on the long-term growth prospects that are associated with it. Although we have been bullish on the German cannabis opportunity, the market has been slow to advance and this negatively impacted the Canadian Licensed Producers (LPs) that were early movers on it.

From Canopy Growth Corporation (WEED.TO) (CGC) to Aurora Cannabis Inc. (ACB.TO) (ACB), several of the largest Canadian LPs were early movers on the German cannabis market. For operators of this size, the slow advancement of the market was not as significant. For smaller operators, most of their respective resources were invested in Germany and the lack of advancement served as a huge headwind for growth.

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