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).

Making predictions about California’s marijuana industry was a challenge even before a global pandemic changed everything.

It’s not just that the legal cannabis market, which launched three years ago in California, is so new. It’s also the singularity of an industry in which licensed, legal operators still compete against a much larger illicit market, even as the industry’s core consumer product — which is medicine for some people — remains illegal at the federal level.

Although every industry in North America has been touched in some way by the spread of COVID, many cannabis and CBD companies saw their revenues increase when the pandemic began to escalate in the United States in March 2020, a time when other businesses struggled to survive.

It's been a crazy year on Wall Street. Investors only have eyes for the unrelenting rally in and growth prospects of tech stocks. But they might be overlooking an even greater growth story: marijuana stocks.

Though cannabis stocks have been on a wild ride of their own over the last five to seven years, we're beginning to see the first signs of industry maturation. In October 2018, Canada became the first industrialized country in the world to roll out the green carpet for recreational marijuana sales.

With every passing day and every new bit of legislation passed, more products containing CBD hit the shelves. Word is out that cannabinoids have real and lasting benefits, particularly when it comes to troubleshooting some of the most persistent maladies plaguing consumers today, including anxiety, insomnia, and pain. Word is also out that not all CBD products are created equal, and that the potency promised on packaging may not be an accurate reflection of the product within.

This year has been quite a doozie for marijuana stocks. 2020 started out looking like it would be a promising time for the cannabis market, but then the coronavirus quickly took its toll. Now, we are in the midst of a pandemic, and we continue to see trading with cannabis stocks done off of fear. This fear-based trading is the main reason behind the large volatility that we have seen in the cannabis market for most of 2020.

A merger of cannabis giants Aphria and Tilray is poised to create a massive shift in the marijuana industry. The two companies announced the plans Dec. 16, with hopes of wrapping the process up in the second quarter of 2021. 

Aphria and Tilray announced they will be merging to create a leading global company accrediting cannabis communities worldwide. It is expected to generate around $100 million pre-tax annually based on the share price of Aphria and Tilray as of Dec. 15.

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. 

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.