Examining The 2021 Cannabis Market And M&A Activity

Following peak investor excitement in 2018 and early 2019, the cannabis markets in Canada and the U.S. have seen a major shift. After its initial uptake, both Canadian and U.S. cannabis markets are now seeing a slow downturn.

The Canadian Cannabis Landscape

In Canada, legal retailers face immense competition from a rampant illegal market. These illegal operations are not subject to the restrictions and regulations imposed on legal retailers, thereby dominating the market with a more competitively priced, readily available product. This has made the costs of investing in a legal cannabis enterprise tenuous. In contrast, the U.S. has suffered from an oversupply and a lack of regulation, which has driven down prices.