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The Demand For Medical Cannabis In Israel Is Growing Like A Weed

Apr 21, 2022 • 7:25 AM EDT
2 MIN READ  •  By Michael Berger
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When it comes to emerging international cannabis markets, Israel is one of the first countries to come to mind. 

From researching medical cannabis for more than 50 years to being able to cultivate for a fraction of the cost in North America, we are bullish on the economics and the long-term growth prospects that are associated with the Israeli market.

In mid-2020, Israel overtook Germany as the largest importer of medicinal cannabis in the world (according to data from Tel Aviv-based Cannabis Magazine and Marijuana Business Daily) and have noticed increased interest in the region as a result.

According to cultivation data from several large-scale Canadian Licensed Producers (LPs) which are levered to Israel, the all-in cost per gram of cannabis flower is less than $0.40 in the country. Due to the low cultivation costs, we find the economics of Israel’s cannabis industry to be very attractive and believe our readers should be aware of this. 

Another reason we are excited about the Israeli cannabis market is related to the export opportunity to the European Union (EU). From a geographic standpoint, Israel is located much closer to the EU than Canada. As a result, shipping costs from Israel to the EU are lower than shipping costs from Canada to the EU. 

So far this year, we have seen a spike in the amount of demand for medical cannabis in Israel and are working to identify companies that are benefiting from this. Some of the Canadian LPs that are focused on Israel are Aurora Cannabis Inc. (TSX: ACB) (Nasdaq: ACB), IM Cannabis Corp. (CSE: IMCC) (Nasdaq: IMCC), Aleafia Health Inc. (TSX: AH) (ALEAF), and Cronos Group Inc. (Nasdaq: CRON) (TSX: CRON).

If you want to learn more about the companies that have leverage to Israel, please send an email to support@technical420.com with the subject “Israeli Cannabis Companies” to be added to our distribution list.

For the fastest access to data on Israeli cannabis companies, sign up for our free newsletter!

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Authored By

Michael Berger

Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

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