Projections for Canada's Pot Market Just Got Slashed. Again.
For growth investors, the Canadian pot market has been one of the most appealing investment opportunities in the world, but it's also one of the most frustrating. It presents a whole lot of opportunity because it's the only country other than Uruguay that's legalized recreational marijuana.
However, the rollout since legalization has been less than ideal as supply issues have plagued the industry from the start and high pot prices have made black market products more attractive to price-conscious consumers. Analysts have been downgrading their expectations for the market due to these challenges, and a top Canadian is just the latest to cut its projections.
Canadian Imperial Bank of Commerce (NYSE: CM) Capital Markets previously estimated the recreational pot market in Canada to be worth 3.4 billion Canadian dollars in 2020. However, due to the COVID-19 pandemic and an insufficient number of stores open, the bank now expects that segment of the market to be worth CA$2.5 billion. Last year, recreational sales in Canada totaled CA$1.2 billion.
Source Fool.com
