Recent cannabis industry reports are all predicting the continuation of the seeming unending increase in revenues from year to year. The future is indeed looking bright for the retail sales market in the U.S. A May 30, 2019 article reported: “Retail sales of medical and recreational cannabis in the United States are on pace to eclipse $12 billion by the end of 2019 – an increase of roughly 35% over 2018 – and could rise as high as $30 billion by 2023. Continued sales gains in recreational markets as well as the rapid development of medical marijuana programs in newly legalized states will spur much of that growth over the coming year.” The article said the reason that the industry experts remain optimistic even though: “California’s massive new adult-use industry got off to a slow start, as high taxes, local licensing restrictions and a cumbersome bureaucracy made it difficult for licensed businesses to compete with the state’s entrenched black- and gray-market operators. But by the end of 2018, the number of licensed retail stores and delivery services in California was up considerably, pushing estimated sales past the $2 billion mark.” Active Companies from around the market with current developments include: Body and Mind Inc. (CSE:BAMM) (OTCPK: BMMJ), The Flowr Corporation (TSX-V: FLWR) (OTCPK: FLWPF), HEXO Corp (NYSE: HEXO) (TSX: HEXO), Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT), Terra Tech Corp. (OTCQX: TRTC).
The burden of symptoms associated with medical conditions has ravaged millions of people around the globe. Every day, people suffering from medical conditions are distraught by the harsh effects of the symptoms derived from their ailments. For instance, patients receiving cancer therapy can face a plethora of side effects such as nausea and severe pain. Generally, patients may take other medicines in order to subdue these side effects, and in particular, cancer patients suffering from chronic pain may be prescribed opioids from their physician. The major downside of these treatments is that opioids have life-threatening consequences. Overall, cancer patients suffer from side effects associated with cancer therapies as well as the treatments used to control their side effects. As a result, more medical institutions are beginning to recommend cannabis as an alternative to treat the adverse associated with cancer. The American Cancer Society has cited studies that determined that marijuana can be helpful in treating the side effects of cancer chemotherapy. A few studies have even uncovered that inhaled (smoked or vaporized) marijuana can help with the treatment of neuropathic pain. And more recently, scientists have also reported that THC and other cannabinoids such as CBD can slow the growth of and possibly eliminate cancer cells, ultimately reducing the spread of certain forms of cancer. Other studies have suggested that cannabinoids can be safe for humans in treating cancer, which has led to the wide spread of medical cannabis around the world. As more global government agencies collect positive data from clinical trials, more countries will move towards legalizing medical cannabis because of its valuable therapeutic effects. And as a result, the global legal marijuana market is expected to reach USD 146.4 Billion by 2025 while registering a CAGR of 34.6%, according to data compiled by Grand View Research. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), Canopy Growth Corporation (NYSE: CGC) (TSX: WEED), Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), HEXO Corp. (NYSE: HEXO) (TSX: HEXO).
Within the first quarter of legalization, 5.3 million or 18% of Canadian ages 15 years and older reported using cannabis, according to Statistics Canada. Following legalization, Canada reported a large spike in active users, as a year prior to legalization, just 14% of Canadian of Canadian reported using the plant. During the recent first quarter, approximately 646,000 of the users reported trying cannabis for the first time compared to 327,000 the same period a year ago. Predominantly, the rise is largely due to male users between the ages of 45 and 64, who primarily use cannabis for its therapeutic benefits to treat ailments such as chronic pain, cancer, Alzheimer’s, Parkinson’s, and epilepsy. Based on gender, a significantly larger amount of males used cannabis compared to females. It was estimated that 22.3% of Canadian males used cannabis, while only 12.7% females turned to the plant. Statistics Canada also reported that 29.5% of Canadians ages 15 to 24 years old used cannabis in the first quarter. Similarly, approximately 28.7% of Canadians ages 25 to 34-year-olds also used cannabis during the quarter. Overall, the number of active users has drastically increased over the past year, but it is important to note that the market is still continuing to mature. And despite having legalized cannabis entirely, the Canadian federal government still heavily monitors the market. As a result, many businesses have faced legal barriers, which have in turn negatively impacted their operations. Nonetheless, as the Canadian cannabis market continues to develop and expand, the industry is positioned to become a global driving force. Furthermore, with the second wave of legalization coming later in 2019, the market is expected to flourish even more going forward. According to data compiled by Verified Market Research, the global marijuana market was valued at USD 42.20 Billion in 2016. By 2025, the market is expected to reach USD 466.81 Billion while registering a CAGR of 35.3% from 2018 to 2025. BevCanna Enterprises Inc. (CSE: BEV), HEXO Corp. (NYSE: HEXO) (TSX: HEXO), New Age Beverages Corporation (NASDAQ: NBEV), The Alkaline Water Company Inc. (NASDAQ: WTER) (TSX-V: WTER), Emerald Health Therapeutics, Inc. (OTC: EMHTF) (TSX-V: EMH)
Mainstream retailers across the United States are embracing the growing popularity of the nonpsychoactive cannabinoid, cannabidiol (CBD), making room for CBD products on their prominent shelves.
The European market is on course to grow 400% over the next four years, according to the Brightfield Group. “CBD is just starting to take hold in Europe, with both product availability and consumer awareness still quite limited. This is a great opportunity for developed brands to enter and expand through Europe with far less competition than we’re seeing in the U.S.” That’s opening a wide range of opportunity for companies including The Yield Growth Corp. (CSE:BOSS) (OTCQB:BOSQF), Canopy Growth Corporation (NYSE:CGC) (TSX:WEED), Aurora Cannabis Inc. (NYSE:ACB), Wayland Group Corp. (CSE:WAYL) (OTCQB:MRRCF), HEXO Corporation (NYSE:HEXO) (TSX:HEXO), and ICC International Cannabis Corp. (CSE:WRLD-U) (OTCPK:WLDCF).
The cannabis industry is set to maintain its positive trajectory as legalization sweeps throughout the U.S., Europe, and Latin America. For instance, Jefferies Group, an investment bank, predicts that these regions will legalize cannabis for both medical and recreational use in the shortcoming years. Moreover, Jefferies projects that the cannabis industry will also penetrate into various industries such as pharmaceutical, alcohol, health and wellness, and pet supply industries. Notably, Canada made headlines in 2018 after it became the second country to ever legalize cannabis and the first G-7 nation to do so. Additionally, the remaining G-7 nations, with the exception of Japan, have all adopted partial or full medical cannabis programs, while several have decriminalized the recreational use of cannabis. Uruguay was the first country to fully legalize cannabis back in 2013. And while Canada and Uruguay have both legalized cannabis entirely, the U.S. remains the largest sole market in the industry. Despite not having federally legalized cannabis, the country still delivers billions of dollars in cannabis sales annually, largely thanks to states such as California, Colorado, Nevada, and Washington. Jefferies predicts that less regulated markets can account for nearly USD 80 Billion of the total global cannabis market value. Specifically, Jefferies projects the U.S. cannabis market to reach a value of USD 21.7 Billion by 2029, compared to Canada’s estimate of just USD 5.8 Billion. Additionally, the estimated value is added onto Jefferies’ base valuation for the global cannabis industry of USD 50 Billion by 2029, a figure that accounts for the countries that have already legalized cannabis for either medical or recreational use. As a result, Jefferies forecasts that the total global legal cannabis industry is positioned to reach USD 130 Billion by 2029. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), HEXO Corp. (NYSE-A: HEXO) (TSX: HEXO), Charlotte’s Web Holdings, Inc. (OTC: CWBHF) (TSX: CWEB), The Supreme Cannabis Company, Inc. (OTC: SPRWF) (TSX: FIRE), Emerald Health Therapeutics Inc. (OTC: EMHTF) (TSX-V: EMH)
Consumers across the world enjoy drinking beverages packed with flavors and sweetened sugars like fructose and glucose. In 2011 to 2014, 63% of the U.S. youth and 49% of U.S. adults had consumed a sugary beverage on a daily-basis, according to the Centers for Disease Control and Prevention (CDC). The CDC also mentioned that adults and adolescents who smoke, don’t get enough sleep, don’t exercise as much, and eat fast food regularly tend to be more frequent consumers of sugary beverages. However, people are now beginning to become more conscious about what they consumer. According to a survey by Nielsen, 83% of North Americans changed their diet and 74% engage in physical activity to lose weight. And now, more consumers are putting sugary beverages aside and drinking healthier and more functional drinks instead. Notably, the cannabis-infused beverage market has gained traction among consumers because of its therapeutic benefits. Specifically, most cannabis infused beverages are CBD based because the compound does not induce psychoactive effects on the consumer. Research conducted has also linked CBD to successfully treating of a variety of health concerns such as acne and anxiety. Moreover, CBD is also being leveraged in the healthcare and medical industry to alleviate symptoms associated with conditions such as chronic pain, cancer, arthritis, and epilepsy. In particular, CBD-infused beverages are quickly gaining popularity in North America, largely due to the legal markets prevalent in the region. Nonetheless, more and more countries around the world are also beginning to adopt CBD for medical applications. As a result, the CBD-infused beverage market is positioned to become a thriving segment within the broader cannabis industry. And according to data compiled by Zion Market Research, the global cannabis beverage market was valued at approximately USD 1.61 Billion in 2018. By 2025, the market is expected to reach USD 4.46 Billion while registering a CAGR of 15.6% throughout the forecast period from 2019 and 2025. BevCanna Enterprises Inc. (CSE: BEV), Canopy Growth Corporation (NYSE: CGC) (TSX: WEED), HEXO Corp. (NYSE: HEXO) (TSX: HEXO), New Age Beverages Corporation (NASDAQ: NBEV), The Alkaline Water Company Inc. (NASDAQ: WTER)
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As more jurisdictions have approved medicinal uses of cannabis, many of them have followed with approval of consumer recreational uses… and more food & other consumer CBD infused products are increasingly on the rise as well. This formula should continue the rise in both the projections and in the cannabis markets overall revenues for years to come. A report from Mordor Intelligence, forecasts that: “The cannabis market was valued at USD 14.5 billion in 2018, and it is projected to reach 89.1 billion by 2024, with a CAGR of 37% during the forecast period. The drivers identified in the market are medicinal properties of cannabis, increasing legalization of cannabis, and increasing advances in genetic development and intellectual property of cannabis. Medicinal cannabis accounts for the majority share of the cannabis market, when segmented on the basis of usage. Many countries have legalized the usage of cannabis for medicinal purposes. Many countries, where cannabis has been legalized, have a large adult population aged 50 and above. This increases the demand for medicinal cannabis, as the affinity of getting sick with chronic diseases increases after 50 years. “The growth rate can be attributed to the fact that various countries are now legalizing the usage of cannabis for medical purposes and various states in the US are legalizing the usage of cannabis for recreational purposes as well. North America accounts for more than 95% of the cannabis market, with the US alone making up more than 90% share of the North American market. In the cannabis market, companies are very active and are constantly involved in acquiring shares and developing new products to attract a larger portion of consumers toward their products. Active Companies from around the market with current developments this week include: Marijuana Company of America, Inc. (OTCQB:MCOA), Medical Marijuana, Inc. (OTCPK: MJNA), Kona Gold Solutions, Inc. (OTCPK: KGKG), HEXO Corp. (NYSE: HEXO) (TSX: HEXO), Terra Tech Corp. (OTCQX: TRTC).
Cannabis is most commonly associated with its flower form, however, innovative producers within the industry have developed new products to stand out among the competition. Specifically, in Canada, many producers are designing new products such as concentrates, extracts, and edibles for consumers. Notably, these products are much more potent and effective than traditional flower, which is why many consumers are beginning to shift towards less conventional delivery methods. Moreover, the price of flower has increased since Canada legalized adult-use back in October 2018. According to Statistics Canada, Canadians paid 56.8% more for dried cannabis in legal channels than they did from illicit sources since legalization. Following Canada’s legalization, consumers were paying on average of approximately CAD 9.99 (USD 7.47) per gram compared to the illicit source prices of CAD 6.37 per gram. Health Canada noted that prices in Manitoba prices surged as high as 27.7% per gram, while British Columbia’s prices increased by as little as 3.7%. Typically, the price of cannabis is directly correlated with costs of cultivation and federally or provincially mandated taxes and fees. For instance, the Department of Finance Canada states that in most provinces, cannabis excise taxes is CAD 1.00 per gram, of which the federal government collects CAD 0.25 and the province collects the remaining CAD 0.75. However, back in the 1980s, Canada implemented a tax increase on cigarettes which ultimately lead smokers to turn to the black market for cheaper alternatives. Canada ended up cutting the tobacco taxes. Similarly, the country’s cannabis taxes could potentially be reduced in order to keep consumers away from the black market, as Federal Finance Minister Bill Morneau has pledged to keep taxes as low as possible to keep consumers out of the illicit market and eliminate illegal sources. Furthermore, according to data compiled by Ameri Research, the global legal marijuana market was valued at USD 14.3 Billion in 2016. By 2024, legal marijuana global sales are projected to reach USD 63.5 Billion while exhibiting a CAGR of 21.1% from 2017 to 2024. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), HEXO Corp. (NYSE-A: HEXO) (TSX: HEXO), CannTrust Holdings Inc. (NYSE: CTST) (TSX: TRST), Harvest Health & Recreation, Inc. (OTC: HRVSF) (CSE: HARV), Emerald Health Therapeutics Inc. (OTC: EMHTF) (TSX-V: EMH)