Investing in Cannabis: 3 Top Trends for 2022

What's next for cannabis investors? We look at three vital trends that will define the landscape for the year ahead.

The year 2022 written out with a cannabis leaf as the zero
(Image credit: Getty Images)

The U.S. cannabis industry is growing at an unparalleled pace. Cannabis sales for 2021 are estimated to finish at $31 billion, an increase of 41% over 2020. And yet, despite this positive sales growth, the outlook for investing in cannabis is mixed.

Cannabis stocks slumped in the second half of 2021 after diminished prospects of near-term U.S. federal regulatory reform extended barriers to broad ownership of cannabis equities by institutional investment managers. At the same time, mergers and acquisition (M&A) activity in private markets reached record levels as the industry grappled with increased competition and other byproducts of its latest expansion cycle.

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Matt Hawkins
Contributing Writer,

Matt Hawkins is the Founder and Managing Partner of Entourage Effect Capital. He has 20-plus years of private equity experience and has founded multiple $500 million-plus alternative firms. Matt also serves on the boards of numerous cannabis companies.