Australia is a legal cannabis market that seldom gets the attention it should have and is a market that we are bullish on in 2021.
In 2019, we discovered a downturn in interest in the Australian cannabis market as business began to concentrate on the chance in Latin America. Ever since, the Latin American cannabis market has actually not grown as much as anticipated while the Australian market has actually revealed indications of strength.
2020 was a tough year for Australia. From enormous fires to the COVID pandemic, the nation’s economy has actually been under pressure and this is a pattern that is anticipated to reverse now that a COVID vaccine is being dispersed in nations all over the world.
Although Australia’s economy has actually been adversely affected by the pandemic, the cannabis sector has actually reinforced and this is a pattern that captured our attention. Throughout the in 2015, we have actually seen a reduction in the variety of cannabis business that are concentrated on the chance in Australia or Latin America. A number of these business remain in conservation mode and have actually decreased the rate of acquisitions or have actually closed down operations entirely.
Throughout the last couple of years, we have actually highlighted the significance of being selective with worldwide cannabis markets. Cannabis markets beyond The United States and Canada tend to have actually less capital bought them and this makes the development procedure take longer. We choose markets that have existing facilities (circulation and retail) that can be customized for the cannabis market and agree with on the long-lasting outlook that is related to the Australian market as an outcome of this.
When it pertains to the cannabis flower side of the market, Aleafia Health Inc. (AH.TO) (ALEAF) has actually been profiting from the export chance to Australia and is an operator that we anticipate to tape strong development in 2021.
When it pertains to the cannabis oil side of the market, MediPharm Labs Corporation (LABS.TO) (MEDIF) has actually been performing on a multi-national growth and has actually been profiting from the chance in Australia.
After business like Canopy Development Corporation (CGC) (WEED.TO) and Aurora Cannabis Inc. (ACB) (ACB.TO) left the Australian market, the chance for business like Aleafia Health and MediPharm has actually ended up being more considerable and is a pattern that we anticipate to benefit both services in 2021.
If you have an interest in discovering more about the business that are performing on the Australian cannabis market, please send out an e-mail to [email protected] with the subject “Australian Cannabis Business” to be contributed to our circulation list.