Canadian cannabis producers are likely to scale back their investments in Europe as they come under pressure to cut costs and deliver profit, according to a joint report by two industry consultants on Tuesday. Depending on the pace of legalization, the market for European cannabis could grow at a compound annual rate of 52% for the next five years, hitting $3.1 billion in sales by 2025, Chicago-based research firm Brightfield Group and London-based consultancy Hanway Associates said. They, however, projected the current market at just a tenth of that value and said some Canadian companies may choose to follow two of the sector’s big players in trimming spending outside North America. Cannabis investment in North America has surged in the past three years as Canada became the first major country to legalize the drug for recreational use.
Shariq Khan, Business & Financial News, U.S & International Breaking News | Reuters, 12/01/2020 08:34:25