‘They’ll Eat It, Drink It, Wear It, Take Bubble Baths In It’: How Cannabis Could Be A $1T Industry By 2029
IAfter 90 years of prohibition and 30,000 years of being used by
There’s an opportunity in that, says Todd Harrison, co-founder of CB1 Capital, an investment manager and advisor for cannabinoid-based wellness solutions, products
Given the “tsunami of global growth” around cannabis, some people will continue to smoke it but most won’t, Harrison predicted in an Investopedia, column. “This won’t be a niche market or cottage industry … In cannabis 2.0, they’ll eat it, drink it, wear it, rub it on, stick it in and take bubble baths in it.”
Cannabis and hemp are expected to show up as ingredients in a wide array of products from cosmetics and pet supplements to animal feed, medicine, clothing and more. “We foresee a trillion dollars or more of global market capitalization in 10 years’ time vs roughly $100 billion today,” Harrison said.
“The price action could mirror the dot.com bubble and bust.”Todd Harrison, co-founder of CB1 Capital
Most cannabis equities won’t survive the bust portion of the cycle, Harrison predicts, “as the industry shifts from front-end farming to the consumer-packaged goods, industrial use-cases and biosynthetic applications.”
However, the ones that do make it to the other side will enjoy success beyond what most of us can fathom.
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“In the next few years, we expect to see the FAANG-
Harrison expects the cannabis market to separate into several categories:
- Consumer packaged goods (beverages and nutraceuticals)
- Industrial use-cases (plastic composites and hempcrete)
Expect to see more mergers and acquisitions like Constellation Brands, the maker of Corona beer, which partnered with Canopy Growth Corporation to create cannabis-based beverages, and Altria Group, which partnered with the Cronos Group.
Harrison estimates revenues for U.S. cannabis operators will exceed $5 billion in 2019. However, until
When that gets resolved, it will trigger several dynamics: “Wall Street will initiate coverage and institutions will accumulate equity exposure in U.S. operators, with