In June, California cannabis company Harborside Health ventured north and became the 66th US pot business to list its stock on the Canadian Securities Exchange.

The driving force behind the migration is simple: Marijuana sales are legal at the federal level in Canada, but remain illegal in the US. The federal ban means American cannabis businesses can’t list on US exchanges or raise capital from investors, as long as they sell in their home country.

Following the legalization of recreational cannabis in Canada, we have noticed a significant increase in the number of companies that are developing branded cannabis products for the recreational market.

In 2019, the Canadian cannabis branding opportunity has become much more significant and this comes ahead of the expected legalization of cannabis infused products and cannabis concentrates later this year. The legalization of these cannabis derivative products would be a major catalyst for the companies that are levered to the Canadian market and we have been following how these companies are approaching this opportunity from a branding standpoint.

Being the only developed jurisdiction to legalize the recreational consumption of cannabis has seen Canada become the global leader in cultivation, processing, and distribution of marijuana. This has been a boon for companies such as Canopy Growth (TSX:WEED)(NYSE:CGC), Aurora Cannabis, and Cronos Group, which have seen their stocks soar by 578%, 393%, and 1,074%, respectively, over the last two years.

Much like California's Emerald Triangle, Canada's Kootenay (pronounced koot-nee) region in British Columbia (BC) is known for its small, off-the-grid pot growers, who are famous for their high quality, black market weed, writes Erin Hiatt. 

The "canna-business" is booming, in case you haven't noticed. After generating a whopping $10.9 billion in legal sales last year in licensed stores, the newest "State of the Legal Cannabis Markets" report from the duo of Arcview Market Research and BDS Analytics projects that worldwide sales will top $40 billion by 2024, which is good enough for a more than 24% compound annual growth rate.

Truss CEO expects huge demand for cannabis-infused beverages in Canadian market 

Shares in the world’s leading cannabidiol (CBD) brand Charlotte’s Web Holdings (TSX:CWEB) have gained more than 19% in fewer than the past two weeks of trading. Yet the company’s market capitalization, valued at under $800 million, suggests it’s still only a small-time player within the rapidly growing market for cannabis and cannabis-related products.

How big could this company get?

A $20 billion opportunity

In its most recent investor presentation, Canadian-licensed cannabis producer Aurora Cannabis suggested it thinks the potential size of the market for hemp and CBD products could reach as much as US$22 billion by the year 2022.

You likely don't need the reminder, but there aren't many industries expected to deliver a faster or more consistent growth rate over the next five to 10 years than legal marijuana. A newly released report from Arcview Market Research and BDS Analytics calls for more than $40 billion in global licensed-store salesby 2024, which is almost quadruple what was generated in 2018. Then, by the end of the next decade, cannabis cheerleader Cowen Group has called for $75 billion in annual worldwide sales.

But there's an even larger growth trend within the marijuana industry that has the full and undivided attention of Wall Street and investors. Namely, cannabidiol (CBD).

The last year has been a tough one for cannabis investors. After performing strongly since the start of 2017, many high-flying marijuana stocks have plunged sharply in the wake of Canopy Growth’s (TSX:WEED)(NYSE:CGC) disappointing fiscal fourth-quarter 2019 earnings, which sparked considerable doubts about the earnings potential for cannabis companies.

While there are signs that cannabis stocks could be in a bubble, there is every indication that the burgeoning global marijuana industry is here to stay and can only continue growing despite recent hiccups.