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While people like to smoke (and otherwise consume marijuana, companies operating in the cannabis space have struggled.
Retail sales in the cannabis space continue to rise, but brands have struggled to differentiate themselves. A number of major players have declared bankruptcy because marijuana remains a commodity.
Related: Another popular restaurant chain files for Chapter 11 bankruptcy
Even top-tier retailers, including Las Vegas-based Planet 13, which offers an impressive complex with a retail store, consumption lounge, and a restaurant have struggled to duplicate that success in other markets. When it comes to cannabis and marijuana retail brands, no player stands out.
No company has become the Coca-Cola or Pepsi of the marijuana industry. In reality, every brand is closer to being a store brand than even having the name recognition of RC Cola or Polar Soda.
It's hard to charge a premium price when the consumer does not see much differentiation between brands. In addition, the cannabis audience tends to be well-educated and know the product.
They will pay for the right flower and THC content, but brand names and labels have yet to mean much. The market has also become filled with celebrity brands. It's easier to market marijuana products from Mike Tyson or Tommy Chong than it is to create a standalone brand.
Perhaps that's why Bright Green Corporation has struggled with the company filing for Chapter 11 bankruptcy protection.
Cannabis sales are climbing
"Revenue in the Cannabis market in the United States is forecasted to reach 45.35 billion in 2025. The revenue is anticipated to demonstrate an annual growth rate (CAGR 2025-2029) of 2.24%, leading to a market volume of $49.56 billion by 2029. When compared globally, the United States is expected to generate the highest revenue in 2025,," according to data from Statista.
The challenge for companies isn't the demand for cannabis; it's making consumers want one brand over another. That has been part of the struggle for Bright Green Corporation, which filed for Chapter 11 bankruptcy in late January.
"Bright Green Corporation produces and exports legal cannabis, cannabis extracts, and tetrahydrocannabinol in the United States. Its products are used in research, manufacturing, and export, as well as for the production of medical cannabis products and preparations. The company was incorporated in 2019 and is based in Grants, New Mexico," according to its profile on Yahoo's stock ticker page.
The company trades under the symbol BGXX and it has been trading below $0.05 per share.