Infused Drinks Create a New Dimension to the Cannabis Market
Most people generally associate cannabis with smoking, however, the infused edible and beverage industry has become one of the fastest-growing market segments. Typically, cannabis-infused products are created using an extract that is mixed into the end-product. For instance, producers use solvents such as heat and pressure or CO2 to extract oil from dried cannabis flowers. Afterward, the extracted oil can be used as a baking ingredient in edibles. On the other hand, beverages can also use oil, while some producers use activated ground cannabis or tinctures. A variety of beverage producers are now even infusing CBD and THC into sodas, tea, functional drinks, and even alcohol. Overall, the THC content in infused beverages can range anywhere from minuscule doses of 2.5 milligrams to as much as 100 milligrams per container. The smaller dosage of THC, along with a mixture of CBD, can be used for health and wellness purposes. However, a higher and more concentrated dosage can cause mind-altering effects and would be geared more towards frequent recreational users. And with the rapid growth of the infused beverage market, many large corporations are beginning to explore opportunities within the market. Generally, as consumer preferences continue to change, beverage producers are required to adapt in order to thrive among their competition. And with the increasing popularity of cannabis beverages, many companies are looking to expand their portfolios by adding a cannabis-based operation. Furthermore, current statistics have signaled that alcohol and sugary beverage consumption rates are declining as consumers are notably shifting towards healthier alternative. In particular, CBD-infused beverages are highly popular because they do not cause psychoactive effects but instead, offer therapeutic effects. And according to data compiled by Arcview Market Research and BDS Analytics, North American consumer spending on cannabis-infused foods and drinks reached USD 1.5 Billion in 2018. By 2022, the two firms suggest that edible sales are on track to reach USD 4.1 Billion. BevCanna Enterprises Inc. (OTC: BVNNF) (CSE: BEV), Tilray, Inc. (NASDAQ: TLRY), New Age Beverages Corporation (NASDAQ: NBEV), Charlotte's Web Holdings, Inc. (OTC: CWBHF) (TSX: CWEB), iAnthus Capital Holdings, Inc. (OTC: ITHUF) (CSE: IAN)
The Medical Cannabis Industry Continues its Spread Around the Globe
The cannabis industry has emerged as one of the fastest-growing global industries due to its widespread adoption. While cannabis is still monitored under international regulations, many countries have either legalized or decriminalized the plant, which has heavily accelerated the industry's growth. Moreover, industry experts also believe that increasing advancements in genetic development, as well as the intellectual property of cannabis, is further driving the market. In particular, countries such as the U.S., Australia, Canada, Germany, and Colombia are experiencing overwhelming growth. And specifically, most countries are legalizing cannabis for medical applications because of the multitude of therapeutic benefits that have been associated with cannabis. Researchers have unraveled that the cannabinoids prevalent within cannabis buds have medical benefits. And while cannabis is currently not an approved treatment for either cancer or chronic pain it is approved in several countries to treat conditions such as epilepsy, AIDS, HIV, and multiple sclerosis. As numerous countries have begun entering into the medical cannabis industry, many others are still hesitant because of the psychoactive property that the marijuana plant has long been associated with. While certain regions allow for the use of THC for medical purposes, most countries are using CBD, the non-psychoactive component found within the hemp plant. Furthermore, the medical cannabis industry is primarily being accelerated by the growing number of users ages 50 and above. Consequently, there is an increasing demand for medical cannabis as the possibility of contracting a chronic disease increases after the age of 50. According to Mordor Intelligence, the cannabis market is expected to reach USD 89.1 Billion from USD 14.5 Billion in 2018. Additionally, the market is expected to register a CAGR of 37% during the forecast period from 2019 to 2024. Pressure BioSciences, Inc. (OTC: PBIO), Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT), Sorrento Therapeutics, Inc. (NASDAQ: SRNE), iAnthus Capital Holdings, Inc. (OTC: ITHUF) (CSE: IAN), MariMed Inc. (OTC: MRMD).