The legalization of recreational marijuana across Canada in addition to several U.S. states has garnered a lot of attention as of late — and rightfully so.

Experts are forecasting that the Canadian market for recreational marijuana could reach as much as $10 billion annually within the next decade, and if you were to factor in the potential of a federally regulated U.S. market, that figure could literally go sky high (ahem).

But this Foolish writer has to wonder about the possibility that some of those same experts have been overlooking the role that a lesser-known substance — Cannabidiol, or “CBD” — could play in revolutionizing the way adults look at responsible cannabis consumption.

The world is watching the Canadian cannabis market to see how legalization plays out in a relatively free-market landscape. One of the biggest questions: how will consumer tastes shape the fortunes of the so many new (and newly legal) cannabis producers and retailers?

After price, the most important consideration for purchase decisions is the type of cannabis products made available at a retailer, according to Deloitte’s most recent survey of Canada’s cannabis industry.

Over the past two years, marijuana stocks have been all the rage among investors -- and for several good reasons. With the march toward legalization gaining momentum worldwide, for instance, medical and recreational cannabis sales are on pace to hit a jaw-dropping $146.4 billion by 2025, according to a report by Grand View Research. 

AgMedica Bioscience Inc. has only be licensed to grow medical cannabis in Chatham for just over a year, and the company is already establishing strong roots for success.

The company has recently received current Good Manufacturing Practice (cGMP) certification.

“Having that certification is a step toward getting into the international market,” said Sengkee Ahn, vice-president, investor relations and international business development.

While there are more than 100 licensed producers of medical cannabis, he said less than 10 per cent have the cGMP certification.

No other licensed producer has received EU or Canadian GMP certification as quickly as AgMedica following the receipt of the original Health Canada licence.

More people own shares of the Canadian cannabis producer Aurora Cannabis than Apple on Robinhood, a free trading app popular among millennial traders, highlighting the “green rush” into marijuana by younger investors.

The "Green Rush" to cash in on the potential of a brand-new market has cooled, and it appears that the bloom is off the bud in the volatile cannabis space. Major cannabis companies like Canopy Growth Corporation and Aurora Cannabis Inc. have seen their stock values sharply decline. After the heady rush to recreational legalization, it appears that investors are taking a long, sober second look at pot stocks.

What they're seeing is an infant industry suffering growing pains. Concerns over governance, inefficiencies within the production space, and marketing, as well as looming supply shortages, have cannabis companies scrambling to win back investors who have left and also vying to gain the confidence of new investors sitting on the sidelines.

It's only been a little over three months since marijuana became legal in Canada, but the country's government statistics agency has already added a relevant report to its monthly data set.

Cannabis stocks had a strong performance in Thursday, with a slew of green across Canada and US markets.

The North American Marijuana index, which tracks top cannabis stocks in the US and Canada, added 2.3% to hit 289.50 on Thursday.

The momentum comes a day after Bill Blair, Canada’s minister for the Cannabis Act, reported that there is enough marijuana in Canada to meet demand.

Building on our considerable experience with medical cannabis, and with 147 Health Canada licensed producers, the data is clear: there remains sufficient supply to meet and exceed existing demand.https://t.co/HE4e34jGAi

Slang Worldwide Inc. listed on the Canadian Securities Exchange Tuesday and investors valued the Canopy Growth Corp. CGC, +3.57% WEED, +2.69% -backed cannabis branding and distribution business at C$645 million ($480 million). Slang listed at C$1.50 and closed up 33% at C$1.99 Tuesday, according to CSE data.

Investing in marijuana stocks continues to remain a highly volatile trade. After the investment boom that preceded the Canadian legalization of the commodity for recreational use, many pot stocks are trading much lower than their peak last year.

The British Columbia-based medical marijuana company, Tilray  Inc. (NASDAQ:TLRY), is certainly one of them. After reaching $300 a share in the middle of that hype and speculation, Tilray stock is now trading around $80 a share.