Spending on Cannabis Continues to Grow in Legalized Regions
Due to various recent regulatory changes, the cannabis industry is slowly evolving out of the black market and morphing into a global economic powerhouse. While cannabis still remains heavily regulated in most regions around the world, a handful of countries have moved to legalize cannabis for either medical or recreational use. Notably, only Canada and Uruguay have completely legalized cannabis yet it is the U.S. that accounts for the majority of the global market share. In fact, the U.S. is the largest individual market primarily because of its massive addressable market as well as its early adoption. To note, the U.S. has not federally legalized cannabis, but instead gave states the jurisdiction to decide for themselves. Consequently, 11 states and the District of Columbia moved to legalize recreational cannabis, while more than half the country approved medical cannabis use. In particular, California was the first state to adopt medical cannabis back in 1996. And shortly after, Oregon, Alaska, and Washington joined California and legalized medicinal cannabis in 1998. However, Colorado and Washington completely reshaped the entire industry after the two states moved to legalize recreational adult-use in 2014. By 2015, Colorado reported total cannabis sales of USD 995.59 Million, while Washington reported total sales of USD 486 Million. Meanwhile, Canada reportedly sold approximately USD 1.1 Billion worth of cannabis in the past 12 months, according to Cannabis Benchmark. Moreover, Canada recently launched its "Cannabis 2.0" program, which legalized additional cannabis products such as edibles and beverages. Now, the rapidly growing North American market is anticipated to push the global cannabis industry into mainstream markets. And according to data compiled by Ahead Intel, the global cannabis market was estimated at USD 14.5 Billion in 2018. By 2025, the market is expected to reach USD 107.67 Billion, exhibiting a CAGR of 33.17%. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), HEXO Corp. (NYSE: HEXO) (TSX: HEXO), OrganiGram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), The Green Organic Dutchman Holdings Ltd. (OTC: TGODF) (TSX: TGOD), Emerald Health Therapeutics Inc. (OTC: EMHTF) (TSX-V: EMH).
The Smartest Ways to Invest in CBD Growth Right Now
CBD is quickly becoming a multi-billion-dollar business. In fact, sales of products containing CBD are expected to grow 700% in 2019 year over year, says the Brightfield Group. "The CBD market has been growing rapidly, but we will see unprecedented growth in 2019," Brightfield Managing Director, Bethany Gomez, explains. "The bulk of this growth is coming from large retailers like CVS, Walgreens, and Kroger entering the market and providing that availability to consumers." Better, more Americans are supportive of cannabis legalization. In fact, according to a Gallup survey, 66% of Americans are in favor of legalization. That's up from just 60% in 2016. In addition, cannabis has become a major platform for presidential candidates, as we near the 2020 presidential election. That's leading to a wide range of opportunity for companies including CBD Global Sciences, Inc. (CSE: CBDN), Curaleaf Holdings Inc. (CSE:CURA) (OTCQX:CURLF), CV Sciences Inc. (OTCQB:CVSI), HEXO Corporation (NYSE:HEXO)(TSX:HEXO), and The Supreme Cannabis Company Inc. (TSX:FIRE) (OTCQX:SPRWF).
Patients Turn to CBD for Comfort as Access Becomes More Widespread
Anxiety disorders are one of the most common mental illnesses in the U.S., affecting nearly 40 million adults, according to the Anxiety and Depression Association of America. Anxiety disorders are highly treatable, yet only 36.9% of those suffering actually receive treatment. Generally, people with anxiety disorders are three to five times more likely to visit a doctor and six times more likely to be hospitalized for psychiatric disorders than those who do not suffer from anxiety disorders. Furthermore, the discrepancy between people who receive treatment and those who seek medical attention is alarming. Additionally, the cost of treatment and medical visits can become quite high, especially for people who lack access to adequate healthcare coverage. Typical low-cost treatments such as cognitive-behavioral therapy can cost roughly USD 100.00 or more per hour. Plus, some healthcare insurers do not provide coverage for certain medications, making it increasingly difficult for people suffering from anxiety to manage their conditions. Consequently, many people have decided to turn to CBD or cannabidiol to suppress their anxiety disorders. CBD is a derivative of cannabis, but unlike its marijuana counterpart, the compound does not cause psychotropic effects on the consumer. Instead, CBD offers a relaxing effect in addition to a handful of therapeutic benefits. As such, it is now commonly being used for health and wellness purposes, however, researchers have determined that CBD can also be used to alleviate more serious medical conditions. Notably, medical practitioners have prescribed CBD to patients to better manage symptoms associated with severe conditions such as cancer, chronic pain, Alzheimer's, Parkinson's and epilepsy. In particular, the use of CBD to relieve anxiety has become increasingly popular due to the sheer number of people suffering from anxiety disorders. And as a result, the global cannabidiol market is expected to increase from USD 303 Million in 2018 to USD 2.28 Billion by 2025 while registering a CAGR of 33.5%, according to data compiled by QY Research. Smart Decision, Inc. (OTC: SDEC), HEXO Corp. (NYSE: HEXO) (TSX: HEXO), Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), Emerald Health Therapeutics Inc. (OTC: EMHTF) (TSX-V: EMH), Liberty Health Sciences Inc. (OTC: LHSIF) (CSE: LHS)