The Global Cannabis Industry Is Booming But Will Supply Be Able To Meet Demand?

When a few companies in a particular industry gain an advantage because they entered into a marketplace first, they are said to have ‘first-mover advantage.’ These companies have an opportunity to build strong brand-name recognition, access the best sources of funding, build a loyal customer base, and position themselves to take advantage of any efficiencies yet untouched simply because there aren’t any competitors in the way during their first few years of operation.

As the global tide of marijuana change sweeps across nations, often they find themselves ill-prepared to offer domestically grown marijuana to their populations. Over the last few years, for example, dozens of countries have legalized some form of marijuana. Australia, Italy, Germany, Uruguay, Brasil, New Zealand, Croatia, Chile, Israel, Colombia, Czech Republic, Mexico, South Africa, and Spain all have some form of legal marijuana or are very close to implementing marijuana reform.

That’s a lot of new markets.

But like any burgeoning industry (especially one rising into legality from the black market) there are often growing pains that restrict supply. Self-imposed regulatory hurdles and a lack of domestic production capability are forcing many of these new markets to look to foreign suppliers, and some countries are ready to pounce on the opportunity.

While the U.S. continues to squabble over state-by-state legalization, the federal government is no-where near allowing any type of international trade. We aren’t even close to inter-state trade!

But our friendly neighbors to the north are already taking advantage of the global marijuana supply glut.

Before we can understand why Canada is poised to dominate the international trade industry, it’s important to understand what the international market currently looks like.

The legal international cannabis market is limited to medical use, clinical research, and compassionate access. This is due to a complex system of national and international laws. The importing nation typically issues a permit that follows the regulatory structure of its medical laws. The exporting company gets approval from its domestic national health department and export body. Both nations report to the International Narcotics Control Board, which is the United Nations’s independent control body for international drug conventions.

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Disclosure: This report was authored by and is property of Technical420.All information and data relied upon in drafting this report is publicly available.The author believes and considers its ...

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