These are the Biggest Catalysts for CBD in 2020
Investors would be hard-pressed to find an industry expected to nearly double in value over the next four years. The Brightfield Group says CBD could grow to into a $23.7 billion a year industry in the U.S. by 2023 - a CAGR of 100%. Better, consumers are clamoring for CBD products, as retailers race to keep product on shelves. Even Congress has introduced several new cannabis bills. Presidential candidates are even promising legalization. And many more U.S. states could soon legalize its use. At the moment, 33 U.S. states have legalized its medicinal use. Eleven states approved it recreationally. Another nine states are now on track to hold key votes on legalization by 2020, including Arizona, Florida, and New Jersey. That's opening a wide range of opportunity for companies including The Yield Growth Corp. (CSE:BOSS) (OTCQB:BOSQF), Aphria Inc. (NYSE:APHA) (TSX:APHA), Charlotte's Web Holdings Inc. (CSE:CWEB) (OTCQX:CWBHF), and Canopy Growth Corporation (TSX:WEED) (NYSE:CGC), and OrganiGram Holdings Inc. (TSX-V:OGI) (NASDAQ:OGI).
The Top Companies Disrupting a Massive $23.7 Billion Medical Cannabis Market
Global demand for cannabis-based consumer products has been increasing at a rapid pace. In fact, the Brightfield Group estimates the U.S. CBD product market alone to be worth over $23.7 billion by 2023, as CBD finds its way into a variety of consumer product categories including food and beverage, pharmaceuticals, and health and wellness. Analysts at Research and Markets say the global medical cannabis market could be worth up to $44.4 billion by 2024 from just $13.4 billion last year. In addition, analysts at Statista says U.S. medical retail sales could reach $7.3 billion by 2022, as compared to $4.5 billion sales in 2018. Better, according to a May 2018 survey from Nielsen, analysts found that consumers are quickly embracing CBD products, particularly when it comes to medicinal purposes. In fact, according to the survey, 40% of head and migraine suffers are considering cannabis in addition to 40% of all arthritis pain suffers, and 41% of all back and neck pain sufferers. As CBD continues to disrupt major industries, it's creating a wide range of opportunity for companies such as XPhyto Therapeutics Corp. (CSE:XPHY), HEXO Corporation (NYSE:HEXO)(TSX:HEXO), Aphria Inc. (NYSE:APHA) (TSX:APHA), Tilray Inc. (NASDAQ:TLRY), and OrganiGram Holdings Inc. (TSX-V:OGI)(NASDAQ:OGI).
The Cannabis Market Continues its Sprawl as Legalization Efforts Intensify
The cannabis industry has been witnessing robust growth throughout the U.S., largely due to increasing legalization and decriminalization efforts. Currently, 44 U.S. states have varying degrees of cannabis laws, however, under federal regulations, cannabis is still considered illegal. Additionally, U.S. legislation lists cannabis as a controlled substance. And the Controlled Substances Act (CSA) classifies cannabis as a Schedule 1 drug, primarily because of its marijuana derivative. Under the CSA, marijuana is viewed as a highly addictive drug and serves no medical benefits. Overall, cannabis is predominantly split into two derivatives, the hemp and marijuana plant. The marijuana plant causes cerebral-altering effects because of its THC or tetrahydrocannabinol content. On the other hand, hemp contains an insignificant amount of THC, but is rich with CBD, or cannabidiol. While the two are widely different in their biological makeups, THC and CBD both serve similar demographics. Specifically, THC and CBD are both being used for recreational and medical purposes. Researchers have also highlighted that both compounds can effectively treat a variety of medical conditions such as arthritis, chronic pain, and epilepsy. However, despite medical breakthroughs, the cannabis industry is still heavily hindered by legal barriers. And as research continues to undermine the stereotype revolving around cannabis, the overall industry is expected to become prevalent. According to data compiled by Ameri Research, the global legal marijuana market was valued at USD 14.3 Billion in 2016. By 2024, legal marijuana global sales are projected to reach USD 63.5 Billion while exhibiting a CAGR of 21.1% from 2017 to 2024. Americann Inc. (OTC: ACAN), HEXO Corp. (NYSE: HEXO) (TSX: HEXO), OrganiGram Holdings Inc. (NASDAQ: OGI) (TSX-V: OGI), KushCo Holdings, Inc. (OTC: KSHB), Emerald Health Therapeutics, Inc. (OTC: EMHTF) (TSX-V: EMH).