Canada's Edibles, Beverages, and Concentrates Market is an Untapped Goldmine
Ever since "Legalization 2.0" was first announced, investors have been looking to it as a fulfillment of the long-promised pot gold rush. As of December 17, consumable pot products can be bought and sold on shelves across Canada and, as such, the industry is undergoing a significant disruption. According to Deloitte, the Canadian market for pot edibles and beverages will be worth $2.7 billion annually, and many of the biggest companies have been scrambling to gain access to that value. Because consumables are an entirely new market, they represent an exciting opportunity for retailers to distinguish themselves, and for investors to separate the minor league pot players from the major league ones. Companies that can take advantage of this exciting sector--such as BevCanna Enterprises Inc. (CSE:BEV) (OTCPK:BVNNF) (FRA:7BC), Canopy Growth Corporation (TSX:WEED) (NYSE:CGC), Cronos Group (TSX:CRON) (NASDAQ:CRON), Aurora Cannabis Inc. (TSX:ACB) (NYSE:ACB), and HEXO Corp. (TSX:HEXO) (NYSE:HEXO) - deserve to have investors' attention, as they stand atop an untapped goldmine in the still burgeoning pot industry.
Plethora of Public Figures Throw Support Behind the Cannabis Market
In recent times, more and more celebrities have come out in support of the cannabis industry. Recently, famous Canadian rapper, Drake launched a joint cannabis venture to produce cannabis along with medicinal products and a wide range of clothing apparel. Drake now joins a handful of other celebrities who have also publicly endorsed the use of cannabis. Notably, celebrities such as Snoop Dogg, Wiz Khalifa, Willie Nelson, Jay Z, Martha Stewart, and Rob Gronkowski have all entered into the cannabis marketplace. However, most of the celebrity-backed ventures typically focus on hemp-derived CBD products, even though celebrities such as Snoop Dogg and Wiz Khalifa focus more on highly potent marijuana products. As such, the CBD market is much more attractive in the U.S. because of the passage of the Farm Bill in late 2018. The bill legalized hemp-derived CBD products as long as they contained 0.3% THC or less. Consequently, CBD products began to rapidly emerge throughout retailers across the country. However, industry experts believe that the recreational cannabis market will eventually dwarf the medical sector due to increasing legalization efforts. In particular, U.S. states such as California, Colorado, Nevada, and Washington are expected to contribute billions of dollars collectively to the global market. Moreover, Canada is also rapidly growing and is also projected to become a global revenue driver for the cannabis industry. And according to data compiled by MarketsandMarkets, 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 exhibiting a CAGR of 30.7% during the forecast period. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), Tilray, Inc. (NASDAQ: TLRY), Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT), Charlotte's Web Holdings, Inc. (OTC: CWBHF) (TSX: CWEB)
Regulators Take Further Steps to Expand the Medical CBD Industry
The medical cannabis industry continued to progress after the National Health Services in England and Wales recently decided to approve cannabis-based medicines. Specifically, three treatments using medicinal cannabis were approved by the National Institute for Health and Care Excellence (NICE). As such, NICE noted that these cannabis-based medicines will be restricted to the treatment of only one of two rare forms of childhood epilepsy, multiple sclerosis, and chemotherapy-induced nausea. The institute also noted that all marijuana-based medications must be prescribed by specialist doctors. And an institute spokesman said that the recommendations could immediately be applied for England and Wales, with Northern Ireland expected to consider their use on a case-by-case basis, according to the New York Times. However, the rules do not apply in Scotland, which has its own healthcare guidelines. Generally, the approval by the constituent countries of the U.K. marks another major milestone within the cannabis industry. And England and Wales now join a handful of other international regions that have decided to move towards legalizing medical cannabis. For instance, major countries such as Australia, Canada, Colombia, France, Germany, Italy, Spain, and parts of the U.S. have all moved to adopt some sort of medical cannabis legislation. However, to note, most countries tend to have varying regulations on which specific ailments cannabis is eligible to treat. Nevertheless, as clinical trials continue to advance, industry experts believe that cannabis will become an important alternative treatment for numerous ailments. And according to data compiled by Fortune Business Insights, the global cannabis market was valued at USD 10.6 Billion in 2018. By 2026, the market is expected to reach USD 97.35 Billion while exhibiting a CAGR of 32.92% during the forecast period from 2019 to 2026. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), Canopy Growth Corporation (NYSE: CGC) (TSX: WEED), Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), Aphria Inc. (NYSE: APHA) (TSX: APHA), Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB)