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Cannabis Statistics: One in Seven Americans are Now Using CBD

Interest in CBD Continues to Grow as Governments Reverse Regulatory Course

U.S. Cannabinoid Market Including Hemp Now Projected to Reach $44.8 Billion by 2024

Shifting Regulations Signal of New Horizons for the Cannabis Industry




Released: 11/04/19


Cannabis Statistics: One in Seven Americans are Now Using CBD

Demand for CBD-rich consumer products has been explosive in the U.S.  In fact, right now, one in seven Americans say they use CBD products, says a recent Gallup poll. However, those numbers are likely to increase as more CBD makes its way on to many more shelves of major retailers.  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 more consumer product categories including  food and beverage, pharmaceuticals, cosmetics, and health and wellness.

Released: 11/04/19


Interest in CBD Continues to Grow as Governments Reverse Regulatory Course

Cannabidiol or CBD has become the latest wellness craze among consumers. According to Hemp Industry Daily, citing a study conducted by health scientists from the University of California, San Diego, Johns Hopkins University in Baltimore and the University of York in the United Kingdom, it was uncovered that Google searches for CBD ramped up significantly in 2016. The study collected Google search data in the U.S. from 2004 to April 2019. From 2004 to 2014, CBD searches remained relatively consistent. However, in 2016 search volume began to increase drastically. And by 2017, Google searches for CBD had grown by 125.9%. Then in 2018, search volume grew by another 160.4% year-over-year. Now, the researchers are projecting the search volume to grow by 117.7% in 2019. Notably, Google searches for CBD were on par with yoga and e-cigarettes, but had seven times more clicks than acupuncture, five times higher than apple cider vinegar, and three times more than mediation. Moreover, CBD searches outnumbered searches for vaccination, exercise, marijuana, and veganism. In particular, CBD searches accelerated in 2018 because CBD was experiencing major legalization movements scattered throughout the world. Specifically, the U.S. passed the Farm Bill in late 2018, which legalized the commercialization of hemp-derived CBD products. Meanwhile, a number of countries were also moving towards legalizing CBD for medical applications. Overall, however, the passage of the U.S. Farm Bill sparked interest from millions of consumers nationwide because it was the first time the federal government legalized a derivative of cannabis since it became illegal in 1937. Nevertheless, it is important to remember that the CBD industry is still in its infancy stage due, in large part, to the lack of information. Nevertheless, researchers are continuing to progress through clinical trials to more fully understand the efficacy of CBD. And as a result, the global hemp market is projected to grow by 23.1% during the forecast period between 2019 and 2025, according to data compiled by QYR Consulting.

 

While the CBD market is still relatively new in most regions, it has already experienced dramatic innovations over the past few years. Originally, CBD products were predominantly sold as flower. However, entrepreneurs began to develop new methods of consumption. Consequently, CBD-based products such as concentrates, extracts, edibles, beverages, and tinctures became explosively popular. To note, CBD became popular because researchers discovered that it offers a number of therapeutic benefits. For instance, researchers noted that CBD can alleviate minor medical conditions such as headaches or soreness. Furthermore, extensive studies discovered that CBD can effectively suppress symptoms associated with severe conditions such as cancer, epilepsy, Alzheimer's, and chronic pain. However, its popularity is primarily attributable to CBD-based oils because they are nutrient-rich and emerging scientific research has mentioned that CBD provides consumers with protein, fiber, as well as essential fatty acids. Notably, full-spectrum CBD oils also contain all 20 amino acids, including the nine essential amino acids that the human body processes on its own. It is also believed that full-spectrum oils are an ideal source of Omega 3 and Omega 6 as well as vitamin A, C, E, and B complex. "It wasn't that long ago that we were talking about reefer madness and harms associated with cannabis," Timothy Caulfield, a health industry expert in Ontario, told Gizmodo. "But within a relatively short amount of time, CBD has become a mainstay of this multi-trillion-dollar wellness industry and its benefits are assumed, its efficacy is assumed—it's embraced this health halo."

Released: 11/04/19


U.S. Cannabinoid Market Including Hemp Now Projected to Reach $44.8 Billion by 2024

The U.S. and China are opponents in many categories today and years to come. In some of these interactions there are no winners or losers, however, the U.S. is the clear winner in the global hemp cultivation market. Hemp has more uses that most people would expect from fabric to medicinal uses, but it is the rise of the CBD market that makes this an important 'win'. According to industry reports the U.S. and China are #1 and #2 respectively (by acreage). The country in 3rd place is not even half of China's figures at #2. (Columbia). An article this month in Cannabis Business Times said: "The U.S. hemp-derived CBD market is expected to reach $23.7 billion by 2023, up from the current value of $5 billion, according to Brightfield Group. Thousands of farmers are ramping up production in response to the passage of the 2018 Farm Bill (which legalized hemp at the federal level), the expansion of state industrial hemp programs and the promise of profits. 

In the U.S., the profit potential of CBD is driving the growth in hemp cultivation, with about 87% of the 288,000 acres expected to be used for hemp-derived CBD processing in 2019. On a per-acre level, hemp for CBD could potentially generate $45,203 in revenue, compared with $773 for corn." In yet another bout in the ring, the U.S. again comes out on top…: "… the total cannabinoid market in the U.S. -- which includes hemp-derived CBD -- will reach $44.8 billion by 2024." So says an article in Green Entrepreneur reporting on: "Arcview Market Research and BDS Analytics…  seventh edition of their "State of Legal Cannabis Markets" report.

 

There are now hundreds of CBD brands in the marketplace, so differentiation is critical.

Released: 11/04/19


Shifting Regulations Signal of New Horizons for the Cannabis Industry

The hemp industry made headlines recently, as the U.S. Department of Agriculture (USDA) proposed new draft rules. Currently, under federal regulations, only hemp plants with 0.3% THC or lower are allowed to be commercialized. However, under the new rules, cannabis plants with up to 0.5% THC would be eligible for commercialization. Currently, the agency noted that any farmers who produced hemp which test at 0.3% to 0.5% THC levels must dispose of their inventory. The USDA noted that many of these farmers take necessary steps and precautions to ensure their hemp meets regulatory guidelines, however, sometimes they still produce unacceptable hemp. The new proposal will provide farmers with a slight cushion in order to avoid potential charges as well as profit losses. The proposal by the USDA hints that regulators may be toning down cannabis regulations in general amid widespread legalization efforts. However, to note, 0.5% THC levels are still very minuscule and will not cause psychoactive effects on the consumer. Nonetheless, the draft rules show that federal regulators are beginning to change regulations within the cannabis marketplace as the industry continues to advance. And while hemp-derived products are having a prominent impact throughout the U.S., states that have legalized adult-use cannabis are flourishing from increased marijuana-derived product sales. For instance, in the past six months, states such as Oregon, Colorado, and Washington had over 40% of adults 21 years and older try cannabis products. Notably, Colorado is already on track to report another record-breaking year in cannabis sales. And as states like Michigan and Illinois prepare to kickstart their recreational programs, the North American cannabis market is expected to witness immense growth. Specifically, according to data compiled by IMARC Group, the North American cannabis market was valued at USD 10.1 Billion in 2018. By 2024, the market is expected to reach USD 43.19 Billion, growing at a CAGR of 27.4% during the forecast period from 2019 to 2024.. (OTC: VGWCF) (TSX-V: VGW)

 

The U.S. is the primary global cannabis market driver, however, cannabis is still federally illegal in the country. On the other hand, Canada is just the second nation to legalize cannabis so far, following in Uruguay's footsteps last year. And while the U.S. is a much larger market in terms of revenue, many cannabis operators have decided to establish operations north of the border, in Canada. However, Canada's adult-use cannabis sales are significantly lower than certain U.S. states'. Specifically, during the first nine months of legalization, Canada reported a total of USD 545 in adult-use cannabis sales, according to Statistics Canada. In comparison, Colorado reported USD 1.15 Billion in marijuana sales from January to August this year. As such, it is important to note that Colorado's recreational market is much more developed because the state legalized adult-use back in 2014. Nevertheless, Canada's market is continuing to ramp up as provinces witness their retail and online sales grow. Additionally, while many consumers may simply prefer standard cannabis from dispensaries, avid consumers have sought after high-quality and organic products. Notably, the development of the "craft cannabis" market has added value to the overall industry. Craft cannabis is the precise process of growing and tending to each and every individual plant to ensure premium products. Unlike large licensed producers, craft cannabis cultivators generally avoid using machinery, which can diminish cannabinoid content within the buds. Instead, craft producers harvest each plant by hand to ensure the buds stay intact. Additionally, craft producers also avoid using artificial byproducts which can also affect the cannabinoid output outcome. Consequently, producers are required to monitor each plant for quality checks to avoid potential molding or outbreaks that may destroy harvests. And as a result, craft cultivators are able to produce high-quality strains that large licensed producers are unable to compete against in terms of quality. "Farm-to-table isn't just a food trend. Whether for health, quality or ethical reasons, people want to smoke farm-fresh cannabis, too," said Rose Mattio, Founder of Rosie Mattio Public Relations. "More and more consumers desire a tangible connection with the cannabis flower and care about small farm values such as sustainability, craftsmanship, organic principles and hands-on cultivation techniques."

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