Projections for the Canadian cannabis markets (medical & recreational) are numerous and vary… but the one thing they all agree on is that the markets will continue to rise… substantially! In a report, Cannabis Business Plans describes the overall picture as follows: “Canadian cannabis market has been steadily growing. The country has seen an average of a 10 percent increase each month in the number of Canadian patients signed up to receive medical cannabis. The sale of dried cannabis has grown steadily at 6 percent a month, and the sale of cannabis oil has been growing by 16 percent a month. In 2017, about 4.9 million Canadians aged 15 to 64 spent an estimated $5.7 billion on cannabis for medical and non-medical purposes. This was equivalent to around $1,200 per cannabis consumer. In 2018, Canadians spent $1.6 billion on legal cannabis, more than double the amount that was spent on solely medical cannabis in 2017, according to a new report “The State of Legal Marijuana Market”, released by Arcview Market Research and BDS Analytics. Active companies in the industry making moves to ready that include: Choom(TM) Holdings Inc. (OTCQB: CHOOF) (CSE: CHOO), Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), Fire & Flower Holdings Corp. (TSX-V: FAF) (OTCPK: FFLWF), National Access Cannabis Corp. (TSX-V: META) (OTCPK: NACNF), Tilray, Inc. (NASDAQ: TLRY).
Medical patients can easily obtain a prescription for drugs to treat a variety of ailments. Whether it is simply a common cold or a condition as severe as cancer, medically licensed professionals can prescribe treatment or a drug that they think are best suited for their patients. However, research conducted on some of the treatments has shown that they entail a plethora of drawbacks. There is a wide range of prescription drugs from depressants to opioids to stimulants and generally, prescription drugs are known to be highly addictive and can also cause bodily harm by damaging the heart, brain, and liver. Consequently, if patients abuse prescription drugs, it can ultimately prove to be life-threatening. For instance, the constant use of prescription drugs can cause severe damage to the heart and induce abnormal heart rates and other cardiac problems. Eventually, a patient can suffer from heart attacks, heart failure, and collapsed veins, according to Talbott Recovery. The concern over the growing epidemic of prescription drug abuse has led medical institutions and professionals to reconsider what patients are given. Notably, in regions where cannabis is legalized for medical purposes, more and more patients are beginning to use cannabis as an alternative to pharmaceutical medications. Specifically, Canada has witnessed its medical patient user base grow significantly over the past several years. There were 296,702 patients registered under Health Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR) program as of March 2018. Compared to the same period a year prior, the number of registered patients grew by 76.9%. The robust growth reflects how rapidly the user base is growing as more people turn to cannabis as a medical alternative. Moreover, the global user base is projected to continually grow as more countries begin to implement medical cannabis programs. According to data compiled by MarketsAndMarkets, the global cannabis market is projected to grow from USD 10.3 Billion in 2018 to USD 39.4 Billion by 2023. Furthermore, the market is anticipated to grow at a CAGR of 30.7% during the forecast period. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), Tilray, Inc. (NASDAQ: TLRY), Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT), Acreage Holdings Inc. (OTC: ACRGF) (CSE: ACRG.U), Green Thumb Industries Inc. (OTC: GTBIF) (CSE: GTII)
Canada made headlines in 2018 after it became the second country in the world to completely legalize adult cannabis use. Canada’s Prime Minister Justin Trudeau was a strong advocate for legalization and ultimately, the country decided to pass new legislation and initiate legal adult-use in late 2018. However, despite Canada’s legal market, the enormous U.S. market continues to cast a cloud over its northern neighbor, even though the U.S. has not yet moved to federally legalize cannabis. Instead, U.S. states are given the jurisdiction to legalize cannabis for either medical or recreational purposes. And as of June 2019, 33 states and the District of Columbia allowed the use of cannabis for medical applications. Moreover, 11 of those states, including the District of Columbia, have legalized adult recreational use. The U.S. adopted cannabis as early as the late 1990s when states such as California, Oregon, Alaska, and Washington were the first to implement a medicinal cannabis program. However, the industry was completely reshaped when Colorado and Washington legalized recreational cannabis in 2014. Throughout the beginning phases, legal cannabis sales were slow. For instance, Colorado reported total marijuana sales of USD 683 Million in 2014. But by the end of 2018, Colorado’s legal cannabis market delivered revenues of USD 1.54 Billion, according to the Colorado Department of Revenue. Furthermore, Colorado is on pace to report another record-breaking year in marijuana sales for 2019. As of January 2019 to April 2019, the state had already reported sales of USD 522 Million. While Canada’s market may seem minuscule in comparison to the U.S. market, it is still positioned to become a major global growth driver. Unlike the U.S., Canada has federally legalized cannabis, meaning that its market penetration is much greater, even as Canada’s legal market still remains relatively new. Nonetheless, the market will continue to mature as the legal business progresses. And according to data compiled by ArcView Market Research and BDS Analytics, the legal cannabis spending in Canada was USD 569 Million in 2018. By 2024, the spending is expected to reach USD 5.2 Billion while exhibiting a CAGR of 44.4%. Canopy Rivers Inc. (OTC: CNPOF) (TSX-V: RIV), Tilray, Inc. (NASDAQ: TLRY), Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), Curaleaf Holdings, Inc. (OTC: CURLF) (CSE: CURA), Green Thumb Industries Inc. (OTC: GTBIF) (CSE: GTII)
Zenabis Global Inc.’s (TSX:ZENA) (“Zenabis” or the “Company”) wholly-owned subsidiary, Zenabis Ltd., has closed its previously-announced non-dilutive financing via a pre-paid supply agreement with High Park Holdings Ltd. (“High Park”) (the “Supply Agreement”), a wholly-owned subsidiary of Tilray, Inc. (NASDAQ:TLRY) (“Tilray”).
United Kingdom, Germany Among Primary Targets As More EU Countries Enact Cannabis Legislation
Zenabis Global Inc. (TSX:ZENA) (“Zenabis” or the “Company”) today announced that its wholly-owned subsidiary, Zenabis Ltd., has entered into an agreement with High Park Holdings Ltd. (“High Park”) (the “Supply Agreement”), a wholly-owned subsidiary of Tilray, Inc. (NASDAQ:TLRY) (“Tilray”), pursuant to which High Park will advance CAD $30 million to Zenabis (the “prepaid amount”) in return for a supply of dried cannabis from Zenabis.
Customers around the world consume sugary drinks on a daily basis. While the statistics on the daily average consumer sugar intake are astonishing, the number has steadily fallen over the past several years. For instance, in Canada, adults over the age of 19 have drastically decreased the amount of sugar they ingest as, according to a study by Statistics Canada, Canadians aged 19 or older consumed 85 grams of sugar daily in 2015, cutting down from 93 grams in 2004. While the daily intake can be comprised of other factors such as foods, the study suggested sugary drinks were the top sugar source for all Canadians. Nowadays, consumers are becoming more aware and cautious about what they put in their bodies. And in turn, consumers are beginning to transition towards health-beneficial and functional beverages instead of ones packed with sugars. For instance, cannabis-infused beverages are gaining momentum particularly quickly within the beverage industry. Specifically, the CBD or cannabidiol compound found within the cannabis plant is being infused into beverages to create a therapeutic and functional drink, as studies have linked CBD to treating a range of health benefits such as insomnia, anxiety, seizures, inflammation, and chronic pain. CBD is more commonly being used as opposed to THC or tetrahydrocannabinol because it does not provide consumers with psychoactive effects. Instead, two compounds offer similar health benefits, despite having different biological makeups. While the legality of CBD-based products was unclear prior to last year, the market has swiftly gained traction following the passage of several historic bills. Notably, the passage of the U.S. Farm Bill paved the way for the hemp-derived CBD industry’s growth, while Canada’s legalization of adult-use cannabis also greatly contributed to the industry. Lastly, Canada’s upcoming legalization of cannabis-infused edibles in October of this year is expected to propel the industry even further. According to data compiled by Mordor Intelligence, the global cannabis market was valued at USD 14.5 Billion in 2018. By 2024, the market is projected to reach USD 89.1 Billion while registering a robust CAGR of 37% during the forecast period from 2019 to 2024. BevCanna Enterprises Inc. (CSE: BEV), Constellation Brands, Inc. (NYSE: STZ), Anheuser-Busch InBev SA/NV (NYSE: BUD), Molson Coors Brewing Company (NYSE: TAP) (TSX: TPX), Tilray, Inc. (NASDAQ: TLRY)
Most regions around the world allow young adults at the age of 18 to enjoy or purchase their own alcohol and tobacco. However, the U.S. has strictly enforced that adults must be 21 years old or older in order to purchase alcohol. Meanwhile, some parts of the U.S. have also implemented a mandated age of 21 years or older to purchase tobacco. The U.S. government strongly believed that if the minimum age requirement was raised to 21 it would reduce the number of young adults drinking or smoking. However, Mike Males, a Senior Researcher for San Francisco’s Center on Juvenile and Criminal Justice, highlighted that changing the age limit has little to no effect in the reduction of underage users. Additionally, teenagers are more likely to obtain their supply from an illegal source and consequently, teenagers are more likely to drink or smoke in excess. Similarly, as the legal cannabis market begins to take off, lawmakers are approaching the industry with caution. In U.S. states where cannabis is legal for adult-use strictly only allow adults 21 years old and over to purchase any cannabis-based products. On the other hand, Canada allows consumers 18 years old and older (19 years old in some provinces) to purchase cannabis-based products. The age difference between the two countries allows Canada to minimize the illicit trade market. Additionally, setting the legal age at 18 years old would also open a whole new demographic of young adults, expanding the market penetration even further. Following Canada’s complete legalization of cannabis, the adult use market is positioned to become a major growth factor for the overall industry. In 2018, adult use cannabis sales totaled USD 112.5 Million and are projected to reach USD 4.8 Billion by 2024. Furthermore, the medical cannabis segment is expected to decline at a CAGR of 3% at the legal adult use market continues to ramp up over the next shortcoming years. According to data compiled by ArcView Market Research and BDS Analytics, the overall Canadian legal cannabis market was valued at USD 569 Million in 2018. By 2024, the market is expected to reach USD 5.2 Billion while accelerating at an explosive CAGR of 44.4%. MediPharm Labs Corp. (OTC: MEDIF) (TSX-V: LABS), Innovative Industrial Properties, Inc. (NYSE: IIPR), Tilray, Inc. (NASDAQ: TLRY), Akerna Corp. (NASDAQ: KERN), Pyxus International Inc. (NYSE: PYX)
Before the prohibition era, cannabis was commonly used as a medicinal treatment, however, it became illegal under international regulations due to its psychoactive properties derived from the marijuana compound. While marijuana provides users with cerebral-altering effects, scientific studies have linked marijuana to effectively treating a variety of medical conditions such as cancer, Parkinson’s, Alzheimer’s, arthritis, and other neurological conditions. Currently, advancements in the medical and healthcare industry are expected to accelerate the cannabis market. However, within the shortcoming years, the recreational segment is expected to overshadow the medical segment as the North American cannabis marketplace continues to mature. Nevertheless, the medical cannabis industry is still expected to be much more globally prevalent and accessible because of the numerous countries that have moved to adopt medical legislation. Now, large global markets such as Australia, Canada, Germany, Colombia, Poland, Uruguay, and Israel are all expected to contribute to the global medical cannabis market. Furthermore, countries such as the U.K. and Thailand are also exploring cannabis legalization. According to data compiled by Grand View Research, the global legal marijuana market is expected to reach USD 66.3 Billion by the end of 2025, exhibiting a CAGR of 23.9%. Blueberries Medical Corp. (OTC: BBRRF) (CSE: BBM), Tilray, Inc. (NASDAQ: TLRY), Khiron Life Sciences Corp. (OTC: KHRNF) (TSX-V: KHRN), PharmaCielo Ltd. (OTC: PHCEF) (TSX-V: PCLO), Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT)
The cannabis sector continues its steady shift toward big business and big money, with much of growth based on acquisitions, agreements and consistent research.