If you’re a growth investor, the U.S. cannabis industry is one area you’ll want some exposure to. The U.S. pot market is going to grow at a rate of 18% per year (on average) and reach a value of $34.5 billion by 2025, according to cannabis research company BDSA. That’s more than five times the Canadian market’s projected value, which by 2025 will be worth approximately $6.1 billion. International sales are only set to climb to $6.5 billion five years from now.
Two companies that could stand to benefit from massive U.S. market growth are Trulieve Cannabis (OTC:TCNNF) and Harvest Health & Recreation (OTC:HRVSF). Trulieve recently announced its expansion into a fifth U.S. state with the acquisition of two Pennsylvania-based companies, while Harvest owns and operates over 30 retail locations across seven states. Let’s take a closer look at where these two cannabis companies are going (and where they’ve been) in order to determine which one is the better buy for cannabis investors today.
Can Trulieve’s domination continue outside of Florida?
Although its presence technically spans five states, Trulieve has achieved most of its success by focusing on its home market of Florida. On Sept. 22, the company announced the opening of its 61st dispensary and its 59th in Florida. With only two dispensary locations outside of the state, the company faces a big test with further expansion.
Trulieve’s recorded a profit in each of the past five quarters, and a big reason for that stability is its simplified business model. Many cannabis companies struggle to stay out of the red amid rapid growth. They often deploy strategies that include expansion into many different regions out of a desire to grow their presence and overall market share.
Moving into more states will certainly boost Trulieve’s