Last year, bitcoin made investors go on a mad rush and this year, it’s marijuana stocks’ turn. This is especially true against the backdrop of more legalization of the plant for recreational use.

In the United States, nine states and Washington, D.C., have currently legalized recreational marijuana, while 29 states have legalized medical weed. Canadians will also be able to buy and consume cannabis legally, effective Oct 17. The move made Canada the second country in the world to legalize the drug for both medical and recreational use, trailing Uruguay, and the first country among G-7 nations.

Growing legalization of recreational or medical marijuana has paved the way for a merger mania, spurring a large number of deal activities in the industry. The most notable among this is the beer and spirits giant Diageo (DEO – Free Report) , which is in talks with three Canadian pot producers for buying a stake or forming a partnership to produce cannabis-infused beverages. An international producer and beer marketer Constellation Brands (STZ – Free Report) invested $3.8 billion last month to increase its stake in Canopy Growth (CGC – Free Report) , the biggest marijuana industry deal so far.

Molson Coors (TAP) is also starting a joint venture with Hydropothecary to develop marijuana drinks in Canada while Heineken (HEINY – Free Report) owned Lagunitas launched a THC-infused sparkling water in California dispensaries on Jul 30.

According to the Arcview Market Research, the U.S. legal cannabis market is projected to reach $11 billion in consumer spending this year and more than $23 billion by 2022. Per an analyst at Cowen, the U.S. legal cannabis industry is expected to reach $75 billion in sales by 2030, surpassing the carbonated soft drink market in 2017.

How to Play?

Given this, investors seeking to ride the ongoing green rush may want to tap the space. For them, we have highlighted a few ETFs and stocks that could be compelling picks.

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