2 Stocks That Could Dominate the Hemp CBD Space in 2020

Marijuana may not be federally legal in the U.S., but that doesn't mean the market for cannabidiol (CBD) isn't about to heat up. Although CBD will have to be derived from hemp, as that was what U.S. legislators allowed in December 2018 when they passed the farm bill, there's still a lot of interest in hemp CBD products. And for a couple of Canadian companies looking for more growth, producing hemp-based CBD products is an attractive way to get in on the hemp and cannabis craze in the U.S. Below are two stocks that could become forces in the industry in 2020:

Canopy Growth (NYSE: CGC) may not be a big player in the U.S. hemp market today, but that could change quickly. The cannabis giant already has a license in New York to grow hemp and has a 308,000 square-foot facility in Kirkwood that the company expects to be operational in 2020. The company has not provided a firm launch date, but in April it did state that it plans to "recruit the full workforce in mid 2020."

However, the company isn't waiting for its cultivation facility to be up and running before it starts tapping into the hemp market. In December, Canopy Growth launched First & Free, a product line for hemp-based CBD products that customers can buy online. The site currently offers shipping to dozens of states. And since hemp products are legal federally, they wouldn't need to be sourced locally, as Canopy Growth would be able to ship them from Canada into the U.S. From a logistical standpoint, that helps the company be more efficient in its operations and keeps its costs down.

Source Fool.com