The cannabis industry impacts a wide range of industries throughout the economy. This includes companies that interact with or “touch” the marijuana plant, companies that directly support cannabis cultivators and retailers, and ancillary companies that provide products and services for the broader market. Cannabis stocks listed in the United States are predominantly ancillary in nature, whereas the Canadian public cannabis industry is largely dominated by licensed growers known as Licensed Producers.

We've broken down the cannabis industry into eleven different industry sectors. All companies in the Marijuana Stock Universe are assigned to one industry sector to classify their primary area of focus in the cannabis industry. Sector allocations are completed based on an analysis of the company's public information including its financial statements, marketing documents, website, and management's public statements. Companies that are involved in multiple sectors are allocated to the sector that most represents their stated operations.
The Agricultural Technology (AgTech) sector consists of companies focused on providing technologies, equipment, and supplies to assist in the production and cultivation of the cannabis plant. As the cannabis industry evolves, competition is driving greater efficiencies in the cultivation of cannabis, requiring higher production yields and lower costs. This sector includes companies that provide automated growing systems, greenhouses, farming products, nutrients, hydroponics, fertilization systems, horticultural expertise, LED/lighting technologies, air filtration systems, and climate control and energy efficiency systems.
The Biotech sector consists of pharmaceutical companies focused on the research and development of new drugs and products utilizing cannabinoids, the active compounds within cannabis. The sector is currently the largest sector in the U.S and is expected to continue its growth as more companies, universities, and governments around the world expand their research of cannabinoids, the endocannabinoid system, cannabis medicinal products, and more.
The Consumption Devices sector consists of companies focused on developing and selling personal consumption devices for cannabis consumers. Vaporizing cannabis has become an increasingly popular method of consumption for many cannabis consumers, especially given the potential health benefits it may offer compared to traditional smoking. The market for consumption devices also includes companies focused on developing alternative cannabis delivery methods such as inhalers.
The Cultivation & Retail sector consists of companies that grow and sell cannabis flower and related products. The sector is currently dominated by Canada’s Licensed Producers, companies with a license from the Canadian federal government to grow and sell marijuana. Despite the uncertain legal environment in the United States, an increasing number of cultivators and retailers have decided to enter the OTC public markets. Companies in this sector are highly sensitive to local, state, and federal cannabis regulations.
The Hemp Products sector consists of companies that produce and sell hemp products. While hemp is a member of the same plant species as cannabis, it has lower concentrations of the psychoactive compound tetrahydrocannabinol (THC) and a higher concentration of the non-psychoactive compound cannabidiol (CBD). Hemp is one of the most versatile plants in the world, and is used to make thousands of products, including paper, textiles, clothing, biofuel, food, beverages, and CBD products for medical purposes.
The Investing & Finance sector consists primarily of companies focused on investing in the cannabis industry. This includes holding companies which own and/or manage a portfolio of cannabis assets. This sector also contains financial service providers that offer capital and financing solutions for companies in the cannabis industry.
Companies in the Marijuana Products sector are focused on developing and selling marijuana-infused products. The growing popularity of cannabis has led to a wide and evolving range of new cannabis products including infused food products, drinks, oils, extracts, and lotions. This sector also includes companies focused on the extraction of cannabis compounds and their infusion into consumer products. As competition in the market grows, companies in the sector must continually develop their branding and consistency, while meeting the evolving local and state regulations regarding these products.
The Other Ancillary sector consists of companies that provide products and services related to the broader cannabis economy that do not fit within the other sectors. This sector includes companies focused on developing breathalyzers and testing kits for marijuana consumers and organizations. It also includes cannabis medical clinics, hospitality and tourism companies, cannabis vending machine manufacturers, and more.
The Real Estate sector consists of companies that develop, own, and/or lease commercial real estate properties to licensed cannabis operators. This includes investment companies and REITs focused on managing a portfolio of cannabis real estate assets. The high difficulty of identifying, acquiring, and managing commercial real estate for marijuana purposes has created an opportunity for real estate firms with specialized expertise in licensing and cannabis laws.
The Secondary Services sector consists of companies that provide consulting and other business services directly to marijuana cultivators and retailers. The complex and evolving cannabis business environment has led to strong demand for experts in areas such as licensing and cultivation. This sector includes companies that provide professional services such as branding, packaging, bottling, compliance, physical security, transportation, lab testing, distribution, and insurance.
The Tech & Media sector covers companies that provide technologies, software, and media for cannabis companies and consumers. New technologies are being developed to assess the challenges presented by the emerging cannabis industry, such as seed-to-sale systems which track cannabis cultivation until the point of sale. This sector includes companies that provide delivery services, enterprise software, e-commerce platforms, communication and mapping services, and trading platforms. It also includes companies that provide marijuana-related media including news, content, social networks, games, and entertainment.