Expect 25% Growth Rate For Cannabis Industry: Artemis' William Muecke Says

At the recent Benzinga Cannabis Capital Conference, William Muecke, co-founder and managing member of Artemis Growth Partners, shared his insights on the future of the industry, touching on pressing issues like regulatory challenges, sustainability, and the industry’s intersection with healthcare.

A Bright Future for Cannabis Despite Growing Pains

Muecke expressed optimism about the global cannabis market despite acknowledging the challenges it faces. “The word for the global cannabis industry is that deregulation continues,” he said. He emphasized that the legal side has been growing year over year, noting a compound annual growth rate (CAGR) of 35% since legalization in the U.S. “We’re still projecting a 20 to 25% CAGR forward for the industry,” he added.

Muecke explained that while micro-level issues exist in individual U.S. states, the broader global market is opening up. “When you look at the global markets, it’s a deregulatory environment. It’s only opening up to have more patients, more consumers coming online,” Muecke said, predicting more revenue opportunities and operator success.

See Also: Kamala Harris’ Marijuana Plan Could ‘Remove Barriers To Employment, Housing And Education For Black Men’ Industry Leaders Say

ESG And Sustainability

Discussing environmental, social, and governance (ESG) principles, Muecke addressed the challenges companies face in aligning with these goals. “The challenge is actually in measuring what those goals mean,” he said, explaining that the cannabis industry is an ESG category. He emphasized that his firm set its own guidelines for ESG compliance and is currently auditing both itself and the companies it invests in, with plans to publish the results.

For Muecke, being ESG-compliant isn’t just a moral obligation and a sound business decision. “If you do it well, it drives multiples to be higher, valuations higher. So in the end, it’s good for business to be an ESG operator,” he noted.

Cannabis And Healthcare

Muecke also discussed how cannabis intersects with healthcare, pointing to the growing interest from pharmaceutical companies. He highlighted Jazz Pharmaceuticals’ $7.2 billion acquisition of GW Pharmaceuticals as an example. “We see that there’s further collaboration as laws change, and you get a better regulatory environment for testing, for clinical trials,” he said.

As the regulatory environment improves, Muecke expects to see more cannabis-derived compounds used in medical applications. He also pointed out that many global markets are opening first to medical cannabis, creating further opportunities for collaboration between the cannabis and healthcare industries.

Challenges And Opportunities

Despite the industry’s challenges, Muecke remains confident about its future. “It’s a very exciting market,” he said, emphasizing that deregulation is paving the way for more patients and consumers to access cannabis. “In the end, that’s better for society and better for the patient,” he concluded.

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