NEW YORK: According to a recent report by New Frontier Data, the Viridian Cannabis Stock Index gained 236.1% in 2016 and outperforming such mainstream indexes as the Russell 2000 (up 19.5%), the Dow Jones Industrial Average (up 13.4%), the S&P 500 (up 9.5%), and the Nasdaq composite (up 7.5%). New Frontier Data also reported that legal cannabis sales in California alone are projected to reach $2.8 billion in 2017 and $6.6 billion by 2025, with a compound annual growth rate of 12% over the next eight years. Medical cannabis products are now legal in 29 states and Washington DC.
A significant portion of the total legal cannabis market is the CBD market. Cannabidiol (CBD) is the part of the cannabis plant that is usually used for medical purposes, and is a natural component of industrial cannabis or hemp. Growth of the medical cannabis market is expected to accelerate as the products become more popular treatments for various medical applications such as chronic pain, post-traumatic stress disorder (PTSD), sleep disorders, anxiety, nerve pain and others.
Bethany Gomez, the Director of Research at Brightfield Group said, “Essentially everyone is trying to do hemp, but only a handful are doing it well. It’s seen as easy because it can be sold online but, with restrictions on traditional marketing, it is very difficult to connect with your core consumer and even communicate why they need your product,” Forbes reported.