VANCOUVER, BC, March 29, 2021 /PRNewswire/ -- USA News Group - The drumbeat towards cannabis legalization is growing louder, as US lawmakers early in 2021 are signalling increasing openness to the market. In early February, multiple US Senators issued a joint statement announcing that marijuana reform bills would be merged as Congress moves toward some form of federal cannabis legalization. By mid-March, cannabis stocks surged after New York's Governor said his state was 'very close' on legalization. So far the momentum has impacted the share prices of several cannabis stocks of all sizes, including MYM Nutraceuticals Inc. (OTCQB:MYMMF) (CSE:MYM), OrganiGram Holdings Inc. (NASDAQ:OGI) (TSX:OGI), Cronos Group Inc. (NASDAQ:CRON) (TSX:CRON), HEXO Corp.

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In the early months of the COVID pandemic, many people questioned the future of the cannabis industry. After the sector was declared to be an essential industry, many US operators were able to breathe a sigh of relief.

The US cannabis sector will come out of the pandemic stronger than ever as many operators were able to cut expenses as e-commerce cannabis sales remain higher than pre-pandemic levels. When you combine lower expenses with several new medical and recreational cannabis markets, you have a recipe for success and we are bullish on the direction the industry is heading. 

One of the only bright spots in 2020 was the emerging cannabis industry. Whereas the ongoing global pandemic has negatively impacted virtually every other industry on earth, the legal international cannabis industry has powered forward.

According to data firm BDSA, spending on the legal cannabis industry is expected to top $20 billion in 2020, up from an estimated $14.8 billion in 2019. To put that number into perspective, the international music organization IFPI estimates that the entire global music industry is worth roughly $20 billion dollars, and unlike the music industry the cannabis industry has plenty of room for growth.

Provincial governments in Canada have adopted a “conservative” approach to the branding behind cannabis legalization that’s likely not as effective as it could be, suggest researchers from the University of Alberta (U of A). The apparent ambivalence regarding weed marketing has almost extended to a “demarketing” strategy, according to Folio, the U of A’s brand journalism site.

“Our initial expectation was that governments would be competing fairly effectively with either the private sector or the illicit market,” notes Kyle Murray, study co-author and acting dean of the Alberta School of Business.

In a budding industry, every year seems to possess a distinct significance. As someone who has traversed the globe advising on all things cannabis for more than a decade, I can confidently say that no two years have been the same. New patterns and market fluctuations come and go rapidly - a fairly common occurrence as a nascent industry builds its foundation.

Canada is only one of two countries where cannabis is legal for adult use, along with Uruguay.

Uruguay was the first nation to legalize cannabis. However, its legalization model is more restrictive compared to Canada.

In Canada, the legal adult-use cannabis industry is open to anyone of legal age, whereas in Uruguay only residents can make purchases.

Within Canada, there are various sub-legalization models between provinces, with New Brunswick having a particularly unique industry model.

The CBD market has always been a tough place to succeed. And companies experienced yet more hurdles in 2020, as a pandemic and an assortment of lawsuits gripped the industry.

In the face of such strong headwinds, it seems like it’ll also be hard for CBD businesses to grow in 2021. But it won’t be impossible. Despite obvious difficulties, the industry still provides opportunities for well-run companies to establish themselves and prosper.

There are several strategies companies can employ to develop a successful brand in this ever-changing market. But before discussing them, it’s important to understand the challenges that CBD entrepreneurs face.

The New Brunswick government has opted to pull back away from its search for a private company to take over the province’s cannabis retail, with the move attracting mostly support, but also a call to reset the current approach.

On Friday, the provincial government announced it had discontinued its request for proposal (RFP) process — which kicked off in the late fall of 2019 and was rumoured to be down to one serious suitor — for privatizing recreational cannabis retail in New Brunswick.

The year 2020 was a good one for cannabis stocks, and 2021 is looking even better. Many investors find it hard to go all in on U.S. cannabis stocks, given that a lack of federal legalization keeps them from trading on the major exchanges. But these over-the-counter stocks have more room to grow as the cannabis industry is rapidly evolving.

Cannabis is still a nascent industry, but it's expanding fast. Buying and holding the right marijuana stocks for the long haul will help you capture that growth for your own portfolio. And there are some U.S. cannabis companies -- those with staggering revenue growth, rising and consistent profitability, and strong balance sheets -- that could bring exceptional profit.

It was a sluggish start of the year for Canada's cannabis market as sales fell by more than five per cent in January from the prior month, according to Statistics Canada.