U.S. Federal Cannabis Legalization Could Be Worth $128.8 Billion In Taxes And 1.6 Million Jobs

DISTRICT OF COLUMBIA: New Frontier Data, the authority in data, analytics and business intelligence for the global cannabis industry, releases its new study Cannabis In the U.S. Economy: Jobs, Growth and Tax Revenue, 2019 Edition. The report looks at the current state of legal cannabis jobs and tax revenues and projects the impact that full federal legalization would have on the U.S. economy, especially tax revenue generation and job creation. New Frontier Data forecasts that under full federal legalization the cannabis industry could produce nearly $130 billion in additional tax revenues and over 1 million jobs nationwide.

“With so much speculation about economic slowdown, the potential for federally legal cannabis to create up to a million new jobs and close to $130 billion in tax revenue is likely going to be of interest to regulators and presidential candidates in 2020,” said New Frontier Data Founder and CEO Giadha Aguirre de Carcer. “Cannabis is already being considered as an investment option for forward-looking portfolio and fund managers as a possible hedge against economic downturn impacting more traditional investments.”

Some of the report findings include that:

  • 2018-2019 YOY job growth in the cannabis industry generated nearly 82,000 jobs.
  • If full legalization occurred in all 50 states today, there would be in excess of 1.46 million jobs, increasing to 1.63 million jobs by 2025.
  • Full legalization would result in more legal businesses participating in the market, more consumers participating in the legal market, and more employees on official payrolls, resulting in $8.4 billion in payroll taxes. By 2025, payroll deductions would increase to $9.5 billion.
  • Assuming a 15% federal sales tax, total revenues from 2018–2025 would reach $73.7 billion. This amount would be entirely new revenue to the U.S. Treasury, as there are currently no federal sales or excise taxes.
  • The total combined taxes under full federal legalization would reach $175.8 billion between 2018–2025 based on business tax revenues, the payroll withholdings based on the estimated employment, and the 15% retail sales taxes.
  • The difference between the current structure and the theoretical model is a $128.8 billion increase in federal tax revenues.

A free Download of Cannabis In the U.S. Economy: Jobs, Growth and Tax Revenue, 2019 Edition is available at: https://newfrontierdata.com/jobs2019

U.S. Hemp Revenues 2nd To China’s: New Frontier Data Projects $5.7B In U.S. Hemp Sales by 2020

DISTRICT OF COLUMBIA: New Frontier Data, the authority in data analytics and business intelligence on the global cannabis industry, with sponsorship from Hoban Law Group, Shi Farms and Mary’s Nutritionals,  releases a new, first-of-its-kind report, The Global State of Hemp: 2019 Industry Outlook, stating the global hemp industry reached $3.7 billion USD in retail sales in 2018, with an annual growth rate of 15% driven by continued strength in Chinese textiles, European industrials, Canadian foods, and the U.S. hemp-derived CBD market.

China led all countries with nearly $1.2 billion USD in hemp sales in 2018, followed by the United States ($1.0 billion), Europe ($980 million) and South and Central America ($220 million). The U.S. market is positioned to grow under the 2018 Farm Bill, with an estimated $2.6 billion projected in sales by 2022, with $1.3 billion in sales estimated for hemp-derived CBD products by 2022.

“As regulatory barriers diminish in the months and years ahead, businesses will continue to expand the ways in which hemp is utilized, especially across medicinal and industrial applications,” said New Frontier Data Founder and CEO Giadha Aguirre de Carcer. “This report is the first in-depth, quantitative and fact-based analysis of the global hemp industry since the United States’ 2018 Farm Bill and Canada’s Cannabis Act passed; two groundbreaking changes in North America that dramatically re-shaped the entire hemp industry.”

By 2020, New Frontier Data estimates the global market will reach $5.7 billion USD across all markets, representing a three-year compound annual growth rate (CAGR) of 17.5%.

“The U.S. hemp industry is set to boom under the 2018 Farm Bill. American farmers have a new crop, and consumers are seeing an explosion of new and innovative products. Hemp: the ultimate triple bottom line crop for people, planet and profits,” said New Frontier Data Director of Hemp Analytics Sean Murphy.

New Frontier Data’s online intelligence portal, Equio, provides readers with reports on global markets and a series of country profiles which offer an introduction to various markets, trends and recent investment activities in the cannabis industry. Equio subscribers have access to this new report.

Purchase and download The Global State of Hemp: 2019 Industry Outlook HERE.

Cresco Labs’ Mindy’s Edibles Ranks First for Cannabis Edible Sales In Nevada

ILLINOIS: Cresco Labs, one of the largest vertically integrated multistate cannabis operators in the United States, is excited to announce that its Mindy’s Kitchen brand has been ranked the top selling edible in Nevada according to Headset, the first real-time data analytics and business intelligence platform for the cannabis industry. In partnership with Cresco Labs, James Beard Award-winning chef Mindy Segal created the industry’s first culinary-backed, cannabis-infused edibles, with a six-state distribution planned for 2019. In Nevada, Mindy’s Pink Lemonade Gummies, Strawberry Sparkling Wine Hard Sweets and Wild Cherry Gummies, ranked first, ninth and tenth, respectively, by Headset, for edible sales in the state.

“We launched Mindy’s Edibles in Nevada in mid-August and, in less than six months, our products are now carried in 62 out of 67 dispensaries in the state,” said Cresco Labs CEO and co-founder Charles Bachtell. “Our proven ability to create brands that resonate with each consumer segment and establish a dominant retail market position is a key differentiator for Cresco Labs.”

Mindy’s Artisanal Edibles include a line of decadent chocolate brittle bars and homespun baked goods infused with clear distillate allowing the best ingredients to shine through. The Mindy’s Kitchen brand – a collaboration between Mindy and her talented group of chefs – offers fun, fruity confections for everyday enjoyability and effectiveness. The confections are infused with RSO and winterized sativa, indica and hybrid oil that complement the approachable flavors. Mindy’s Edibles are produced and distributed in partnership with Silver State Wellness in Nevada.

Eaze Releases 2018 California Cannabis Trend Report

Data Report Shows An Upward Trend Among Females, Baby Boomers and CBD for Wellness

CALIFORNIA: Eaze, a cannabis marketplace, has released its fourth annual Eaze Insights: 2018 State of Cannabis data report, a comprehensive overview of consumer trends driving the cannabis industry year over year. The report draws insights from the consumer behavior of more than 450,000 Eaze consumers and over 4,000 survey respondents across the state of California.

This latest report in the Eaze Insights series reveals that the cannabis customer base is growing and diversifying, demonstrating a rise in popularity across all adult groups, regardless of gender or age. Consumers are also turning to cannabis to curb unhealthy habits. A majority of participants surveyed stated cannabis as a reason for reducing their alcohol and tobacco consumption, and cannabis reduced or eliminated participants’ need for over-the-counter and prescription pain medication.

Key findings from the report include:

  • The cannabis customer base is diversifying across age groups: First-time cannabis consumers grew by 140% thanks to adult use legalization in California. Baby Boomers were one of the fastest growing segments, increasing by 25% over the past year.
  • Year of the female cannabis consumer: With female consumers nearly doubling, the growth of women entering the market outpaced men and continued the trend of increasing female participation, with women now 38% of cannabis consumers.
  • CBD is driving a new demographic of cannabis users: CBD consumers nearly doubled in 2018, growing from 2.6% in 2017 to 4.8% in 2018. Baby Boomers are the most common CBD enthusiasts of all generations (8.4% in 2018) and female Boomers are the most likely CBD users.
  • Cannabis products are used for a variety of wellness applications: Overall, 71% of surveyed consumers reduced (53%) or stopped (18%) their over-the-counter (OTC) pain treatment, and 60% have reduced (52%) or stopped (72%) their alcohol consumption.

“The 2018 State of Cannabis report shows continued acceptance and de-stigmatization of cannabis across legal age groups – along with continued enthusiasm for new products,” said Jim Patterson, CEO of Eaze. “Promoting wellness is a top priority for our company, so we’re excited to see how consumers are using cannabis as a part of their daily routines.”

Other insights from the report include different ways consumers are choosing to consume cannabis, an increase in first-time buyers, the most popular holidays to buy cannabis, and a comparison of buying patterns between consumers in Northern and Southern California. The full report can be found here.

 

Aphria And UNOapp To Partner On Technology And Analytics Solutions For The Adult-Use Cannabis Industry

CANADA: Aphria recently entered into an exclusive agreement with Toronto-based UNOapp to collaborate on the development of technology and analytics solutions for Canada’s adult-use cannabis industry.  

aphria logo“With our innovation-focused approach, Aphria is setting the pace for the evolution of the adult-use cannabis industry in Canada,” said Jakob Ripshtein, President of Aphria. “Our industry’s long-term future will be driven by consumer-centric, innovation-led product, brand and technology solutions. We are excited for this collaboration with a fantastic technology partner in UNOapp and look forward to developing industry-leading solutions that shape the adult-use cannabis market for years to come.”

Founded in 2010, UNOapp has developed proven technology, marketing and analytical solutions that has enabled more than 4,500 customers across the globe to engage with their customers and drive revenue.

“This is a great opportunity for UNOapp to apply its proven technology driven solutions to the Cannabis industry. Helping brands connect, educate and engage consumers seamlessly through one platform in retail, is at the core of what we do.” said Olivier Centner, Founder of UNOapp. “We’re thrilled to be partnered with Aphria. Their team’s expertise, innovative thinking, and global reach give us a tremendous opportunity to evolve our platform to meet the unique needs of the burgeoning adult-use market in Canada and scale quickly to other markets internationally.”

As part of the Agreement, UNOapp has granted Aphria a first option to commercialize any platform or solution developed from this collaboration in any international market outside Canada.

New Report: Legal Cannabis Market Projected To Grow 27% CAGR By 2023

IRELAND: The legal cannabis market is projected to register a CAGR of over 27% by 2023, according to “Global Legal Cannabis Market 2019-2023” a new report just added to ResearchAndMarkets.com.

The latest trend gaining momentum in the market is the use of advanced techniques in cannabis cultivation. According to the report, one of the major drivers for this market is the rapid legalization of cannabis. Further, the report states that one of the major factors hindering the growth of this market is the health hazards associated with the consumption of cannabis products.

Market Trends

  • Increasing demand due to growing number of patients who need cannabis for medical use
  • Use of advanced techniques in cannabis cultivation
  • Rising mergers and acquisitions in the cannabis sector

Key Players

  • Aphria
  • Aurora Cannabis
  • Canopy Growth Corporation
  • CV Sciences
  • Tilray

New Report Details Growth Of Global Cannabis Market to 2023

IRELAND: ResearchAndMarkets.com has released the “Cannabis Market by Product Type (Flower, Concentrates), Compound (THC-Dominant, CBD-Dominant, and Balanced THC & CBD), Application (Medical and Recreational), and Region (North America, South America, Europe, and Row) – Global Forecast to 2023” report.

Among the highlights:

Growing medicinal application of cannabis is expected to drive the overall growth of the cannabis market

  • The cannabis market size is expected to grow from USD 10.3 billion in 2018 to USD 39.4 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 30.7% during the forecast period.
  • The cannabis market is driven by various factors such as the growing medicinal application of cannabis and the increasing legalization of cannabis. However, a complex regulatory structure for the use of cannabis can hinder the growth of the market.
  • The concentrates segment is the fastest-growing segment in the cannabis market, by product type. This is due to their ease in usage and their versatility in the method of delivery, such as dabbing, ingestible oils, and tinctures. Also, along with ingestion, concentrates can offer cleaner, smoother, and less-odiferous hits than flowers. Concentrates are being increasingly opted for over flowers, as these as more potent in nature. The potency of concentrates could also be modified as per requirement and usage, to evoke a higher consumer likeability.
  • The THC-dominant segment is projected to hold the largest share and grow at the highest CAGR during the forecast period. The dominance of this segment is majorly attributed to the fact that THC is the psychoactive substance in cannabis products and is responsible for head high feeling. Even though high THC content is better known for its mind-altering euphoria, it has important medical benefits and is considered effective in relieving nausea, appetite loss, and insomnia.
  • The market in this region is primarily driven by the growth in the US and Canadian markets. The market in this region is driven by the increasing legalization of cannabis for both medical and recreational purposes all over North America and the increasing awareness among consumers regarding the health benefits of cannabis.

 

Headset Insights Launches In California

CALIFORNIA: Headset is proud to announce the latest launch of its market intelligence product Headset Insights, for California’s legal cannabis industry, expanding its cannabis intelligence coverage to the largest cannabis economy in the US.

Headset Insights is a tool for businesses that delivers market trends based on aggregated sales data collected from retailers and dispensaries in real-time, so operators can better understand the competitive landscape, know their brands’ position in the market, and even identify opportunities for future product development.

As the birthplace of cannabis legalization initiatives in 1996, the forecasted size of the California market is expected to swell to $5.6 billion by 2020, marking it the largest in the United States, with all four of its major metropolitan markets currently online with legal cannabis production, testing and retail outlets.

The number of retail licenses grew by 113% during the first six months of 2018, proving that there will be no shortage of outlets available to the adult use consumer. As of July 1, stringent new regulations on testing, packaging, and labeling have gone into effect in California, securing the positions of the industry’s most serious players. There has never been more need for big data products and services.

“Since we launched our Insights platform last year in Washington, Colorado and Nevada, retailers, manufacturers and brands throughout the state of California have been asking us when we would be expanding to their state to provide them with this valuable tool,” says Cy Scott, founder and CEO of Headset. “We are delighted to be able to now offer California market data to our customers helping companies get a better sense of category, segment, brand and product trends as the California cannabis industry continues to mature and cement itself as the largest market in the world. Although the market is quite new, our data already shows that California is behaving in a significantly different way than other recreational markets.”

The cannabis industry is moving rapidly, and operators are looking to use data analytics to identify the fastest-moving product segments and consumer demographics before their competitors do.

Unlike other software tools, Headset collects this data in real time, directly from the industry’s top POS systems, and reports back to operators to guide their most crucial business decisions.

Cannabis operators and other industry players can run analytics on cannabis products at the SKU, brand and category level, gaining key insights into where they rank within the overall market. Headset’s market data illustrates how manufacturers stack up next to the competition and is invaluable for brand positioning when approaching new or existing clients.

Real-time analytics are important, as the state regulations continue to change, and new licenses continue to roll out, creating even more competition. With Headset Insights real-time data, operators can find out what is happening in the market right away and make timely business decisions.

For information about the California cannabis market, read Headset’s Early Market Trends: California 2018 industry report.

 

Atlanta Cannabis Market Report

GEORGIA: The following Cannabis Marketplace Report summarizes the full Atlanta Market Report. Based on large sample sizes that are weighted and balanced to represent the market, the report delivers insightful consumer data about cannabis users including more than 1,000 data points such as opinions, reasons for use, attitudes, types of cannabis products purchased and spending levels.  Consumer Research Around Cannabis surveys 85+ markets in the U.S., and has just release its first Canadian report for the Greater Toronto-Niagara. For more information, click here.

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Columbus Ohio Cannabis Marketplace Report

OHIO: The latest Cannabis Marketplace Report highlights data from the Columbus, OH area. Based on large sample sizes that are weighted and balanced to represent the market, the report delivers insightful consumer data about cannabis users including more than 1,000 data points such as opinions, reasons for use, attitudes, types of cannabis products purchased and spending levels. In addition to cannabis, we offer options to tie into general market consumer information (demographics, occupation, education, financial, lifestyle, media usage, automotive and other plan to purchase targets) as they relate to marijuana use.

The Columbus, OH “Cannabis Marketplace Report” reveals some interesting facts about consumers. For example, 71.9% of Adults 21+ in Columbus, OH approve of medicinal and/or recreational cannabis use.

71.9% of Adults 21+ in Columbus, OH approve of medicinal and/or recreational cannabis use.

71.9% of Adults 21+ in Columbus, OH approve of medicinal and/or recreational cannabis use.