The surge of global cannabis industry through CBD products

While the cannabis industry continues to surge in the United States, the global market is predicted to see massive gains in the coming years. These days, cannabis-derived products such as CBD are heralded as research-based health-promoting solutions that can safely be used by billions of people around the world.

Green is the colour of money

According to The Brightfield Group’s new report Canada and International Cannabis Markets, the current global cannabis industry is worth US$7.7 billion (AU$9.76 billion) and, as reported in Forbes, is predicted to reach US$34 billion (AU$43.10 billion) by 2021.

Cannabis legalisation is a hot topic for debate in many countries including the United Kingdom where the value of illicit trade has been valued at £6.8 billion (AU$12.03 billion). Proponents argue that legalisation in the UK could generate as much as £1 billion (AU$1.77 billion) in tax revenues.

Around the world, increased tolerance is creating immense opportunity for brands which can bring innovative cannabis products to market. As the global industry continues to expand, new verticals and segments are being created on a daily basis.

Global cannabis investment opportunities on the rise

While recreational cannabis use continues to be a sensitive topic in many areas and legal jurisdictions, a large part of the growth of the industry is tied to medical applications and innovations such as CBD therapies, which do not feature the psychoactive effects prevalent in normal recreational marijuana.

Today, more than 90 percent of cannabis sales occur in the United States. Though with many governments currently considering legalisation initiatives, it is predicted that by 2021, the US will only account for 57 percent of the lawful global cannabis industry.

Medical and recreational marijuana, marijuana concentrates, and edibles are only one part of this growing industry, which also includes CBD products, refined pharmaceutical, nutraceutical, beauty as well as hemp fibre-based products.

The rise of CBD

The cannabis-derived compound known as cannabidiol or CBD for short has emerged as an extremely promising health and wellness promoting substance. CBD products are being brought to market which can be smoked, vaporised, drank, eaten, or used topically in lotions, creams and salves.

Many leading scientists and medical researchers, including the World Health Organization, have determined that CBD offers a range of medical health benefits without the potential to be abused or cause harm to users.

Key research published in May of 2017 in the New England Journal of Medicine found CBD therapies to be effective in treating seizures. The study was randomised, double-blind and placebo-controlled to promote validity and reliability of its research findings.

While CBD-rich marijuana strains have likely been used medically by humans for more than 10,000 years, the combination of legal prohibition and illicit cultivation focused on generating higher THC levels made CBD therapy an afterthought until recently.

In the United States, CBD products are sold extensively by industry leaders such as PotNetwork Holding, Inc. (OTCMKTS:POTN) and its subsidiary Diamond CBD. PotNetwork posted revenues of US$14.5 million (AU$18.38 million) in 2017.

According to a press release, in just the first 45 days of 2018, PotNetwork has already generated US$3 million (AU$3.80 million) in sales. Compared with 2017, this represents a growth of over 300 percent. It demonstrates the immense potential for the global growth of CBD as encapsulated by key performance indicators from one of the United States most successful vendors.

Currently, PotNetwork subsidiary Diamond CBD has brought 15 distinct CBD focused brands to market, products ranging from concentrated oils, edible candies, vape pens and pet products, among others.

According to Technavio’s report Global CBD Market Report 2017-2021, the global CBD market is expected to grow at a compound annual growth rate (CAGR) of 39.2 percent.

Local challenges and global opportunities

Australia, Poland, Czech Republic, Canada, Croatia, Macedonia, Turkey, Austria, Belgium, Estonia, Finland, France, Germany, Ireland, Spain, Netherlands, Slovenia, Uruguay, Italy, Macedonia, Malta, Portugal, Romania, Russia, Serbia, Switzerland, parts of the United States and other countries currently offer options for medical and or recreational cannabis sales. Laws differ widely between counties, and in the case of the United States, between states within nations.

While there are challenges to meet local requirements of international cannabis product distribution and sales, there are also immense opportunities due to consumer demand and willingness on the part of governments to reconsider public health, criminal and commercial laws.

Advances in medical applications of cannabis-derived products such as CBD and their acceptance by mainstream medical professionals will create immense investment opportunities for the individuals and firms able to continue to bring these products to new markets.

Article from press release sent for publication consideration.