Question

Describe the industry in which Organigram is operating.

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Answer 1

Organigram is operating within the cannabis industry. The cannabis is very early therefore, there is a lot of ambiguity and risk.In 2016, the Trudeau government announced on April 20th, 2016 that legalization of recreational cannabis would be introduced in the spring of 2017 with the intention of having it become law in the spring of 2018.“The size of the recreational market was predicted to be 5 billion and up to 22.6 billion if including the ancillary market”

The single most important determinant for OrganiGram's future success is just how big the global cannabis market can grow. You'll hear some cannabis industry executives talk about a $150 billion potential market. That number stems from a United Nations estimate of the illegal worldwide cannabis market size. Getting to a $150 billion market assumes that marijuana will become legal everywhere it's currently illegal. Maybe that could happen, but it will take a long time.

Another more realistic projection comes from Statista, which estimates that the global legal cannabis market will grow from $20.1 billion in 2018 to $63.5 billion by 2024. This figure is in the ballpark of the $66.3 billion global cannabis market in 2025 predicted by Grand View Research.

However, this estimates don't include hemp-derived cannabidiol (CBD) sales. OrganiGram touts Brightfield Group's projection of a $22 billion U.S. hemp CBD market by 2022. That estimate, however, is much higher than others. Hemp Industry Daily forecasts a $7 billion U.S. hemp CBD market by 2023.