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Independent report reveals more than 70% of U.S. and Canadian retail investors expect cannabis investment to grow significantly over next 12 months

LOS ANGELES–(BUSINESS WIRE)–ManifestSeven (formerly MJIC), California’s first integrated omnichannel platform for legal cannabis, today released the first report exploring U.S. and Canadian affluent investor perceptions on investing in the legal cannabis industry over the next 12 months. The survey was independently conducted by FTI Consulting among 660 investors in both countries, 28 percent of whom have USD $1 million to $10 million or more of investible assets.

Cannabis 2.0: The Future of Investing in the Industry, a report commissioned by ManifestSeven, revealed that most investors in the U.S. (74%) and Canada (79%) find the cannabis industry an appealing investment area. Of those currently invested in cannabis, 90 percent in the U.S. and 82 percent in Canada believe they are “completely on track” to achieve their financial goals. Comparably, of those not currently invested in cannabis, only six in 10 are confident they will meet their financial goals.

“Based on these survey results, we’re invigorated by the fact that investors are recognizing the potential for growth across the cannabis industry,” said Sturges Karban, ManifestSeven’s Chief Executive Officer. “As legal, compliant cannabis continues to expand its reach, market leaders will begin differentiating themselves by strategically addressing and adapting to the challenges in such a rapidly changing space.”

Most investors in the U.S. (63%) and Canada (54%) believe investing in a diverse portfolio of cannabis companies will greatly help them achieve long-term financial goals. There is a consensus among those surveyed that the cannabis industry subsectors are poised for growth in the next 12 months, as projected by their positive or very positive outlook for the following:

  • Medical innovation companies using cannabis (85% U.S., 86% Canada)
  • Cannabis growing/operational companies (82% U.S., 82% Canada)
  • Cannabis distribution and logistics services (77% U.S., 78% Canada)
  • Ancillary cannabis companies (75% U.S., 77% Canada)

Such bullishness towards cannabis speaks not only to the potential of the market, but the type of investor who is attracted to it. Notably, interest peaks among millennials aged 18 to 34, with 85 percent in the U.S. and 92 percent in Canada finding cannabis investment opportunities appealing. Those numbers drop more than 30 points among surveyed individuals aged 55 and above in the U.S. (48%) and Canada (59%).

“Typically, the people that are willing to take those risks are people who feel like they’re in good shape financially, they have their portfolios where they want them to be and they feel comfortable with their net assets, so they’re willing to explore these alternative investments,” said Lincoln Eckhardt, Managing Director and Co-Head of FTI Consulting’s Cannabis Practice.

Retail investors in the U.S. and Canada differ on their motive for investing in cannabis, and the results suggest Canadian investors may take a longer-term view. Regardless of whether they would personally invest in the industry, 46 percent of U.S. investors credit the prospect of higher returns as the primary incentive driving investment in cannabis. In Canada, 53 percent point to the prospect of longer-term returns.

That said, challenges remain that give investors pause. In the U.S., nearly half (49%) of retail investors cite the “regulatory environment” as a factor restricting investment over the next year. In Canada, where cannabis is legal and there exists a more established public capital market for it, 56 percent of investors view “financial uncertainty and the volatility of the industry” as barriers to investment.

To encourage broader interest and adoption of cannabis investment in North America, closing the information gap will be key, with the majority of current investors (73% in the U.S. and 77% in Canada) agreeing that the cannabis industry needs to better communicate its benefits to society for medicinal and other purposes.

Tony Kiehn, Managing Director and Co-Founder of Fortis Pacific, in reviewing the survey results, explained that big brands could swoop in and seize the opportunity from smaller players, “Is there a Budweiser out there yet? Is there a Sam Adams out there yet? Nope. But I’ll tell you this much, the big brands are going to proliferate like nobody’s business, and they’re going to crush all these little guys if they don’t get their act together.”


ManifestSeven commissioned FTI Consulting to conduct market research with 660 retail investors across the U.S. and Canada who have a minimum of $250,000 of investible assets, 28% of whom have USD $1 million to $10 million or more of investible assets. The survey was conducted online between September 9th and September 18th, 2019 beginning with a representative sample of 2,300 adults weighted by age; gender; location; and voting behavior in the U.S. Presidential & Canadian Federal Elections in the U.S. and Canada.


ManifestSeven (M7 or the “Company”), formerly known as MJIC, is the first integrated omnichannel platform for legal cannabis, merging compliant distribution with a retail superhighway. The Company, based in Commerce, California, services the needs of lawful operators across the supply chain, from the cultivator to the consumer, through an expansive network of seven facilities stretching from the San Francisco Bay Area to San Diego. M7 further augments its business-to-business value proposition with a growing portfolio of owned and operated retail operations located in major metro markets, including brick-and-mortar dispensaries, local on-demand delivery services, e-commerce and subscription offerings. To learn more, please visit:


Julia DePaul, for ManifestSeven

+1 212.850.5615

[email protected]