The current market capitalization of Canopy Growth is about $10 billion. Indeed, according to the research Recreational Marijuana Insights and Opportunities by Deloitte Canadian market for recreational marijuana will reach 600,000 kg by 2021, and in dollar terms the market will reach somewhere between $4.9 to $8.7 billion. However, Canada has 21 publicly traded and licensed producers and they expect the production to reach over 2,000 tons. Of course, the supply-demand equation, in this case, means a significant downside for the prices of cannabis.
While the excitement of the legalized marijuana is still there, and many companies are ramping its production to meet ever-growing demand, the biggest risk in the next few years will be an oversupply of the product.