There's little doubt that the U.S. is going to be the most lucrative legal cannabis market, once it's fully up and running, and assuming pot is legalized federally. And while the No. 2 spot has typically belonged to Canada, it may not end up that way. While Canada certainly has a head start, having been just the second country to fully legalize marijuana (Uruguay was first), it hasn't exactly been a smooth ride for the cannabis industry there in the period since.
Supply issues have been a big problem, and restrictions on advertising have made it difficult for companies to build their brands. However, even if those issues are addressed, the potential for the Canadian market may still not be all that big, if for no other reason than its relatively small population of 37 million people.
Results so far have been so disappointing that researchers from BDS Analytics recently cut their revenue forecasts for the Canadian market: Where they previously expected it to hit $5.9 billion in 2022, they now are predicting it will hit $5.2 billion by 2024. The managing director of BDS Analytics, Tom Adams, blames the "very cautious approach" that the country's government is taking to cannabis for the slower growth of the market.