The rapid legalization of cannabis is changing the way this industry is headed drastically. Medical cannabis is now legal in 29 states and recreational marijuana has been legalized in 9 states so far. With the world heading towards widespread legalization of cannabis, here are a few cannabis trends that are changing the world:
Large consumer base
With increased awareness of the numerous cannabis benefits, the consumers for cannabis is rapidly rising. According to a study, the number of worldwide cannabis users rose from 194 million in the year 2008 to 234 million in 2016. These consumers include customers who buy cannabis both for medical as well as recreational use. With the legalization of cannabis in many states so far and in the future, this number is only expected to rise.
A recent report suggests that about 4.2 million or 14% of Canadians aged 15 years and older reported use of some form of cannabis “daily” or “weekly. The population of Canada Medical Marijuana users is estimated to be about 4.9 million Canadians between the ages of 15 to 64.
Diverse cannabis products
With such a large consumer demography, there will be an increased demand for cannabis products. Moreover, there will be varied consumer demands so brands must be ready to offer a wide range of products to achieve and maintain a good rank in the cannabis market.
There is an increasing trend towards brands pursuing consumers interested in the specific effects of cannabis like sleep, energy, leisure or medical benefits rather just producing cannabis products with a general effect. Whether it’s tinctures, strains, edibles or topicals, cannabis-infused healthy foods, CBD supplements, cannabis products are being developed to meet particular customer demands. With this approach, product development is exploding to the benefit of the consumer.
Affordability in cannabis products
The legalization of cannabis makes them easily accessible. Thus as competition increases, there is a dramatic decline in the price of cannabis. According to a report by Statistics Canada, the price of non-medical cannabis in Canada has declined by an average of 1.7 percent a year since 1990 mostly due to increased supplies. In 2018, the average price for cannabis is found to be $6.77 per gram, 25% lesser than $9.09 per gram in 2012. This price is expected to reduce further with the legislation on recreational marijuana in the county. In fact, customers can avail deals and discounts on products from various online dispensaries.
Surging cannabis industry
Cannabis data collection company, New Frontier Data predicts the cannabis sector will be $24 Billion by 2025, with a compound annual growth rate of 15%. Consider this: The amount of revenue generated from cannabis in Canada was C$5.4 billion in 2017, where nearly all cannabis consumed in the country came from within the country. The medical Cannabis Market is expected to reach C$1.1 billion by the year 2020.
Canadians purchased $0.3 billion of illegal cannabis from abroad in 2017 while illegal Canadian sales outside of Canada were estimated to be around $1.2 billion. A more recent survey suggests, almost one in four cannabis user reported spending more than $250 over the past three months while many got it from their friends or family.
Increased investment in the cannabis industry
Investors have understood just how lucrative the cannabis industry can be. The rapid expansion of the marijuana industry has enabled new companies to operate in new ways besides just the cultivation and distribution of marijuana. It has opened doors for investment in various cannabis-related businesses like agriculture, technology, consultancy, products, retail and industrial hemp.
Unlike other countries, Canada’s cannabis industry has been legalized on a federal level which encourages and promotes safe marijuana investment. There are many high-performance cannabis stocks in the Canadian cannabis market that shows promising gains in the near future. The country’s annual revenue from the cannabis industry is expected to reach $22.6 billion which is more than the combined value of the entire liquor industry. Food industries are also investing as well as developing infused products which are rich in proteins and all the vitamins needed.
Increased Funding For Medical Research
With the cannabis culture in rally mode, many marijuana businesses are funding medical research and performing trials and studies to gather more info on the use of this plant for treating various ailments. It has also attracted doctors and experts from the pharmaceutical industry for examining the medical science behind the cannabis plant.
The latest in marijuana news is Canada’s federal government decision to provide $1.4 million to fund 14 separate marijuana research projects with the objective of examining and learning about a wide variety of factors related to pot legalization. Each of the 14 research projects will be carried out by experts in universities, hospitals, and other research facilities across the country as individual projects and will receive a $100,000 grant each from the Canadian Institute of Health Research.