Analysts Projected Numbers Differ on Revenue Potentials but Agree on Continued Growth in CBD Products Market

Almost everyone has heard the term “CBD”, even people who have never smoked recreational marijuana or have received a medical marijuana prescription, or even those who are not actively following the U.S. stock markets CBD is everywhere! In a recent report on this phenomenon BDS Analytics said: “Whether or not you keep up with the cannabis industry, you’ve likely heard the term “CBD” recently. Seemingly overnight, CBD is appearing everywhere from beauty product lines to burger joints. As it turns out, there’s legitimate reasoning behind “today’s” latest hype. The recent rise in use and popularity can be primarily attributed to the onset of cannabis legalization across the United States, and most recently, the passage of the 2018 Farm Bill. According to the newest service offered by BDS Analytics, CBD Market Monitor, U.S. sales of cannabis- and hemp-derived CBD products are expected to surge to $20 billion by 2024. With sales of only $1.9 billion in 2018, the forecasted 49% compound annual growth rate (CAGR) through 2024 is staggering. Active companies in the industry making moves to ready that include: OrganiGram Holdings Inc. (NASDAQ: OGI) (TSX-V: OGI), IONIC Brands Corp., (OTC: IONKF) (CSE: IONC), Plus Products Inc. (OTCQB: PLPRF) (CSE: PLUS), Planet 13 Holdings Inc. (OTCQX: PLNHF) (CSE: PLTH), Cresco Labs Inc. (OTCQX: CRLBF) (CES: CL).

Top Five Must-know Hemp Stocks for 2019

With the passage of the U.S. Farm Bill, hemp will see a significant catalyst for growth. It’s already allowing for hemp cultivation and the transfer of hemp products across state lines for commercial and other purposes, notes Forbes. Texas became the latest to legalized hemp just last month. New Hampshire recently passed a law allowing it be grown, processed, and traded in the state. That now bring the number of states with hemp laws to 46, according to Agri-Pulse. Along the way, the story could create a $39.4 billion market, says Markets and Markets, a marked improvement from a $10.3 billion valuation in 2018. That’s opening a wide range of opportunity for companies including MYM Nutraceuticals Inc., (CSE: MYM) (OTCQB: MYMMF), Village Farms International Inc. (TSX: VFF) (NASDAQ: VFF), Crop Infrastructure Corp. (CSE: CROP)(OTCPK: CRXPF), OrganiGram Holdings Inc. (TSX-V: OGI) (NASDAQ: OGI), and PharmaCielo Ltd. (OTCPK: PHCEF) (TSX-V: PCLO).

Cannabis Companies are Aggressively Expanding Their Global Footprint

The cannabis market is gaining significant traction. Over the last year, Canada approved its recreational use. More U.S. states are legalizing. Corporate America is using cannabis in everything from lotions and sunscreen to alcohol and sports drinks. President Trump signed the 2018 Farm Bill into law. In addition, over the next decade, spending on worldwide cannabis could reach $57 billion by 2027, according to Arcview Market Research and BDS Analytics. In their report, “The Road Map to $57 Billion Worldwide Market,” analysts note that the South American market for example could grow from $125 million in 2018 to $776 million by 2027. They also note that Germany could become the leader in the European cannabis market, with Italy expected to see $1.2 billion cannabis sales by 2027. That’s opening a wide range of opportunity for companies including MYM Nutraceuticals Inc., (CSE:MYM) (OTCQB:MYMMF), Cannabis Science Inc. (OTCPK:CBIS), OrganiGram Holdings Inc. (NASDAQ:OGI)(TSX-V:OGI), Curaleaf Holdings Inc. (CSE:CURA)(OTCQX:CURLF), and The Supreme Cannabis Company Inc. (TSX:FIRE)(OTCQX:SPRWF).

Cannabis Companies go Global as the Market Accrues Credibility

Cannabis legalization continued its relentless move forward as Illinois became the 11th U.S. state, including the District of Columbia, to fully legalize adult-use of cannabis. Illinois’ house approved the bill with a bipartisan vote of 66-47, which was passed by the Senate in late May. Illinois’ Governor J.B. Pritzker held a firm stance on legalizing cannabis when he campaigned for his position. Primarily, most of the states that have legalized cannabis entirely are located along the west coast or the northeast region of the U.S. Prior to Illinois, Michigan became the 10th state to legalize cannabis back in November 2018 during the U.S. midterm elections. The legalization of cannabis in the U.S. dates back to the 1990s when California first legalized medical use. Following California’s lead, other states such as Oregon, Alaska, Washington, Maine, and Colorado all legalized medicinal cannabis just a few years after. Moreover, all of these states have since legalized the recreational use of cannabis. However, the process to legalize adult-use did not come into effect for more than a decade later when Colorado and Washington completely reshaped the cannabis industry when they became the first states to legalize recreational use back in 2012. North of the border, Canada came into the spotlight when the nation completely legalized cannabis in October 2018, making it the second nation to ever do so, following Uruguay. It is also the only G7 country to have fully legalized the plant. However, the remaining G-7 nations, except for Japan, have all implemented a partial of full medical cannabis legislation, while some have decriminalized the plant for moderate personal use. Overall, numerous large nations have already moved to adopt a form of cannabis legislation. And as a result, more countries are expected to be influenced and explore opportunities within the marketspace. According to data compiled by ArcView Market Research and BDS Analytics, the worldwide consumer spending on legal cannabis was approximately USD 12.2 Billion. By 2022, consumer spending is projected to reach USD 31.3 Billion by 2022 while growing at a CAGR of 26.7% over a five-year frame from 2017. Canopy Rivers Inc. (OTC: CNPOF) (TSX-V: RIV), Tilray, Inc. (NASDAQ: TLRY), Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), OrganiGram Holdings Inc. (NASDAQ: OGI) (TSX-V: OGI), Altria Group, Inc. (NYSE: MO)

CBD Producers Jumping the Pond to Capitalize on Potential Multi-Billion-Dollar EU CBD Market

Much has changed in the aftermath of the World Health Organization’s (WHO) marijuana reclassification recommendation back in February — in particular, the potential for the European Union (EU) CBD market. Products made from the non-psychoactive cannabinoid are growing in popularity in the EU, through innovation and perseverance from North American companies such as StillCanna Inc. (CSE:STIL) (OTCPK:SCNNF), Marijuana Company of America, Inc. (OTCQB:MCOA), ICC International Cannabis Corp. (OTCPK: WLDCF) (CSE: WRLD.U), OrganiGram Holdings Inc. (NASDAQ: OGI) (TSX. V:OGI) and Aleafia Health Inc. (OTCQX: ALEAF) (TSX: ALEF).

Craft Cultivators Take Meticulous Steps to Ensure Cannabis Quality

As cannabis continues to become more mainstream in modern day society, new users are eager to get their hands on the latest craze. However, every individual user has different tolerance levels, meaning some users may require much more to feel the effects, while some may need a comparatively insignificant amount. In particular, consumers who use cannabis for medicinal purposes can face issues if their tolerance level increases and the drug loses potency. According to Analytical Cannabis, there were 22 unique studies involving 629 participants to study the effects of intoxication. Of the 22 studies, 15 found some positive evidence that higher cannabis tolerance affected intoxication. As a result, most users take short breaks from cannabis use, or more commonly known as “t-breaks,” which frequent recreational users have said that taking t-breaks can help reduce their tolerance levels. On the other hand, medical cannabis users that suffer from chronic pain or discomfort say that t-breaks are rarely an option. In order to meet the demands for both frequent and infrequent users, cultivators are tasked with the challenge of creating strains to please both markets. Typically, strains are either indica, sativa, or a hybrid mix. Indica and sativa are the two major types of the cannabis plant, but the two offer widely different effects. Indica strains are generally known to be more physically sedating, making them perfect for relaxing or sleeping. Meanwhile, sativa strains offer a more uplifting and cerebral effect. On the other hand, hybrid strains usually offer varied effects or a mix between the two depending on the THC to CBD ratio and the parent strains. For instance, a popular strain known as Girl Scout Cookies or “GSC” is a 60% indica and 40% sativa crossover of another hybrid strain and a sativa strain. GSC offers consumers a euphoric body high and a potent relaxation effect, making it optimal for both frequent recreational users and medical patients suffering from pain, nausea, and appetite loss. However, new users may be enticed by a strain that is weaker such as a CBD-dominant strain that simply only offers relaxation effects. Now, as the market continues to grow, the options for strains are virtually endless for consumers with dispensaries and retailers carrying a wide variety of strains. The rather ample selection attracts different demographic markets, helping the cannabis industry accelerate forward. According to data compiled by MarketsandMarkets research, the global cannabis market was valued at USD 10.3 Billion in 2018. By 2023, the market is expected to reach USD 39.4 Billion while growing at a CAGR of 30.7%. Pasha Brands Ltd. (CSE: CRFT), Tilray, Inc. (NASDAQ: TLRY), Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), OrganiGram Holdings Inc. (NASDAQ: OGI) (TSX-V: OGI), New Age Beverages Corporation (NASDAQ: NBEV)

Booming Supply and Demand Conditions Fueling Growing Number of Acquisitions in Cannabis Markets

A recent article looking at what changes 2019 may bring to the global cannabis market projected that mergers and acquisitions will redefine the Marijuana Sector in 2019. Owners of well known brands, from alcohol to sunscreens, have seen that adding a CBD infused variety of their popular brands increases sales. Now everyone will want to have reliable sources to make sure they have enough supplies to meet the demand they hope will be coming in this year. The article said: “The cannabis sector is beginning to snowball and the global legal cannabis market is predicted to be worth $146.4 billion by 2025 (companies) will have to compete with existing operators and other entrants interested in the ancillary cannabis sectors” to lock up enough projected supplies of CBD to add to their product lines. Cannabis, alcohol and tobacco companies represent natural partnerships. Beverage companies are particularly interested in marijuana infused beverages, a market that is predicted to be worth $600 million in the US alone by 2022. Active companies in the industry making moves to ready that include: IONIC Brands Corp., (CSE: IONC), OrganiGram Holdings Inc. (NASDAQ: OGI) (TSX-V: OGI.V), Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF), Planet 13 Holdings Inc. (CSE: PLTH.CN) (OTCQX: PLNHF), Cresco Labs Inc. (CES: CL.CN) (OTCQX: CRLBF).