Cannabis
The Cannabis industry will enter 2021 with continued momentum. On November 3rd, a “Green Wave” was evident at the state and local level, as all six cannabis-related ballot measures were passed. Ballot knock-on effects, coupled with COVID-19 budget deficits, will push other states to legalize adult use, potentially adding another $6B to our $34B U.S. legal TAM by 2025. Longer-term, the generational challenge for enactment at the Federal level should ease, and the addressable opportunity could multiply.
What we’re watching:
- New adult use ballot states
- State legislative changes
- Market share consolidation
- Profitability
- Cash flows
Related themes:
Adult use legalization in NJ could serve as more than enough of a catalyst to set off a domino effect on surrounding Northeast states.
Vivien Azer, Cowen’s Cannabis Catalyst Series Part 2 — Knock-on Effects: Ballots And Budgets