Sources estimate that medical cannabis could become a $7 billion industry under Trudeau

As Justin Trudeau became prime minister in October, Forbes reported that medical cannabis could potentially develop into a billion dollar industry in Canada. Should Trudeau fully legalise cannabis within the next two years, as promised, then recreational cannabis could cause the overall industry value to skyrocket:

Medical marijuana has been projected to become a $1 billion business in Canada by 2020. The legalization of recreational use could push the industry into a $7 billion business by some estimates.

If the estimates prove accurate, then ‘corporate cannabis’ could become a valuable source of employment and tax revenue for the Canadian economy en masse. Recent figures reported in the Guardian show encouraging signs, as a swell of interest in shares for the nation’s medical cannabis companies bodes well for future developments.

Shares in all of Canada’s major listed cannabis companies surged on Tuesday, as the market reacted to Trudeau’s pledge to legalise recreational cannabis use. Canopy Growth Corp, the country’s biggest producer, saw its shares spike as high as 21% when the markets opened the morning after the Liberal’s victory party. Shares in the company, which owns medical marijuana brands Tweed and Bedrocan, had already risen by 29% in the past week.

Trudeau has pledged to legalise cannabis “the right way”, and hopes to impose responsible regulations on its availability, which would restrict the ready access that young people have to the criminal market. However, it now appears that Trudeau’s harm reduction policy may well reap economic dividends, as ‘corporate cannabis’ looks set to bring the ‘green dollar’ to Canada.

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