Legal Marijuana Market Size Could Now Exceed $70 Billion by 2027 as Demand Rises
Jul 25, 2020
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The global market for legal cannabis has been consistently rising the past couple of years and is expected to continue for the next several years according to industry market reports. The global legal marijuana market size is expected to reach USD $73.6 billion by 2027, according to a new report published by Grand View Research, Inc. It is anticipated to expand at a CAGR of 18.1% during the forecast period. Increasing legalization of cannabis for medical as well as adult-use is expected to promote growth. The report said: “On the basis of type, the medical segment held the leading revenue share of 71.0% in 2019, owing to the growing adoption of cannabis as a pharmaceutical product for treating severe medical conditions, such as cancer, arthritis, and Parkinson’s disease and Alzheimer’s disease among other neurological conditions. Moreover, increasing need for pain management therapies along with growing disease burden of chronic pain among elders is expected to boost the product demand.” Active cannabis companies in the industry making moves include: Cannabis Global, Inc., Aphria Inc., Cronos Group Inc., Kaya Holdings, Inc., Neptune Wellness Solutions Inc..
The report continued: “Based on product type, the legal marijuana buds segment accounted for the largest market share in terms of revenue and was valued at USD 9.1 billion in 2019… owing to the easy availability of buds than other products. Buds are primary plant products and are readily available without any processing, which makes them relatively affordable for low-income patients. Moreover, the rapid onset of action of smoking buds compared to other types is anticipated to further fuel the segment growth. Based on medical applications, the chronic pain segment dominated the legal marijuana market in 2019 owing to presence of a large patient pool. On the other hand, mental disorder application is expected to witness the fastest growth over the forecast period owing to the growing number of patients suffering from mental disorders, such as anxiety disorder, depressions, and Alzheimer’s disease.”
Cannabis Global, Inc. BREAKING NEWS : Cannabis Global Closes on Definitive Agreement with Los Angeles-based Brand Whisper Weed Entering the Estimated $10B Regulated Cannabis Market – Cannabis Global, Inc. (“Cannabis Global” or the “Company”), a cannabinoid and hemp extract science-forward company developing infusion and delivery technologies, announces the closing of a definitive agreement to enter the fast-growing California cannabis delivery market. Via the executed agreement, Whisper Weed, Inc. and Cannabis Global, have created a new California Corporation to be named CGI Whisper W, Inc., which will provide management services for the delivery entity. CGI Whisper W, Inc, will receive 51% of the profits from the new entity, which will be recognized as income by Cannabis Global, Inc.
“The delivery sector is the hottest area of the California cannabis business and we are very pleased to have a seat at the table,” commented Arman Tabatabaei. “We not only will be able to grow our revenue base relative to direct delivery, but we also see Whisper Weed as a perfect platform to launch our infusion technologies in the regulated marketplace. With the deal closing, we are already in the process of adding other delivery platforms and other businesses to our overall portfolio.”
Cannabis Global views this agreement as an important step toward the verticalization of its IP-driven focus. Many of the technologies developed for CBD and non-THC marketplaces can be directly applied to the regulated California cannabis marketplace, including the Company’s newly developed tetrahydrocannabivarin (THC-V) and Cannabinol( CBN) delivery technologies.
Whisper Weed Inc operates its website at www.WhisperWeedDelivery.com. Consumers are able to browse products in the flower, pre-roll, cartridge, edibles, and concentrate categories. Consumers simply sign up on the website and order products with a delivery typically within a few hours. The operation headquartered in Downtown Los Angeles delivers to the Los Angeles metro area. Cannabis Global believes the trend toward home delivery for cannabis is robust with further growth expected over the coming year. Read this full release and more news for MCTC at: https://www.financialnewsmedia.com/news-mctc/
Additional industry related developments from around the markets:
Cronos Group Inc. recently announced that it will hold its 2020 Second Quarter Earnings Conference Call on Thursday, August 6, 2020 at 8:30 a.m. EDT. Cronos Group’s senior management team will discuss the Company’s financial results and will be available for questions from the investment community after prepared remarks. A live audio webcast of the earnings call will be available on the Company’s website. The webcast of the call will be archived for replay on the Company’s website.
Cronos also recently disclosed the departure of the CBD company CEO and co-founder, Robert Rosenheck, in a Securities and Exchange Commission filing, less than a year after the big tobacco-backed Cronos Group closed its $300 million acquisition of the Calif.-based cannabidiol brand Lord Jones, the CEO of that business has departed.
Aphria Inc., a leading global cannabis company, recently announced that it will release financial results for its fourth quarter and twelve months ended May 31, 2020 on July 29, 2020. Aphria executives will host a conference call to discuss these results at 9:00 am Eastern Time. A telephone replay will be available approximately two hours after the call concludes through August 29, 2020.
Kaya Holdings, Inc. the first U.S. publicly traded company to vertically integrate cannabis retail, cultivation and processing, recently announced that it has formed a strategic partnership with Day Three Labs (“DTL”), a cannabis innovation and development lab headquartered in Denver, CO with scientific research operations in Ra’anana, outside of Tel Aviv, Israel.
The parties will focus their first cooperative endeavor on sourcing and developing select CBD supplements for pets, to be distributed in Europe by Kaya Kannabis, KAYS’ joint venture in Greece. Additionally, both Joshua Rubin and Rafi Cohen, DTL’s principals, will serve on the Advisory Board of Kaya Shalvah, KAYS’ cultivation and processing project targeted for construction in Israel.
Neptune Wellness Solutions Inc., a diversified and fully integrated health and wellness company, recently announced that it has been authorized by Health Canada to sell cannabis products to provinces and territories. This sales license includes edibles, vapes, extracts, and topicals, including beverage products to name a few. This authorization adds to previously held processing license and will expand Neptune’s cannabis operations to include proprietary branded products. Additionally, the authorization enhances the capabilities of the Company’s white label offerings, providing incremental value and service offerings to its B2B customers.
In addition to the sales license, Neptune’s cold storage and added operating space have been approved for operation. The enlarged cold storage and approved space in the Sherbooke facility provide greater capacity to process larger volumes of product and store at low temperature to protect product. The increased storage adds significantly to Neptune’s logistic capabilities and provides incremental solutions to the Company’s clients.
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