Cannabis & CBD Retail Market To Reach $33 Billion In 2024

MARYLAND:  U.S. retail sales of cannabis and CBD products reached $14 billion in 2019, and are on pace to increase 18% per year to $33 billion in 2024, according to data published in Cannabis and CBD: U.S. Retail Market Trends and Opportunities, the latest report by leading market research firm Packaged Facts.

Cannabis products can be segmented by delivery format—i.e., the method by which the product’s desired compounds are ingested:

  • The most common delivery format, flower—smoked in the form of buds or pre-rolled cigarettes—accounts for nearly 40% of retail sales.
  • Another smokable product, vaporizer cartridges with concentrated THC or CBD compounds, comprises the second largest share. However, this share is falling as concerns about vaping-related lung illnesses rise and as states increasingly restrict sales of both nicotine- and cannabis-infused vaping products.

The fastest annual gains are projected for those delivery formats—namely edibles and topicals—that stand to benefit the most from federal legalization of hemp-based CBD. Major retailers—including foodservice establishments in certain states—are increasingly offering CBD-infused food, beverages, cosmetics, and toiletries that appeal to consumers because these products have the therapeutic benefits of CBD without the psychological effects of THC.

Other major delivery formats include tinctures, pills and capsules, and ingestible oils, which are used for both marijuana- and hemp-based products. Ingestible oils made from hemp seed oil (which does not include CBD or THC) have been available for decades and are used by health-conscious consumers for their purported nutritional benefits.

For more information on this emerging market purchase the report from our website.

OLCC Provides Oregon Legislature With Recreational Marijuana Supply And Demand Study

OREGON: Today the Oregon Liquor Control Commission provided the Oregon Legislative Assembly with the 2019 Recreational Marijuana Supply and Demand Legislative Report required by ORS 475B.548.
2019 Recreational Marijuana Supply and Demand Legislative Report
A Letter from OLCC Director Steve Marks

Oregon’s Public Policy Approach to Support Legal Marijuana Production and the State’s Abundant Supply: The Course for Seeking the Right Balance

The Oregon Liquor Control Commission is grateful for the opportunity to produce for the Oregon Legislature a comprehensive examination of the amount of marijuana accounted for and contained within Oregon’s regulated recreational marijuana market.
Let me first acknowledge that we have a considerable supply of marijuana in our state’s recreational marijuana system.  That licensed Oregon cannabis growers have become successful in producing this volume of marijuana is due in no short order to the intentional choices made by Oregon voters and policy makers.  Now we find ourselves at a crossroads where our state’s history with marijuana and the future of cannabis commercialization meet.

Oregon’s unique geography and climate are qualities that have enabled generations of Oregon farmers to produce copious amounts of cannabis. The illegal export of Oregon cannabis has been taking place for decades. For Oregon, producing a lot of marijuana is not new news; producing a lot of marijuana that is tracked in the legal system is.

Recognition that cannabis is woven into the state’s cultural fabric initially emerged as institutional tolerance when Oregon became the first state in the country to decriminalize marijuana possession in 1973. Greater acceptance of cannabis occurred in 1998 when Oregon, following California’s lead two years earlier, established a medical marijuana program. A broader embrace of cannabis took place when Oregon voters approved Measure 91 in November,2014, and became the 3rd state to legalize recreational marijuana.

With the debate around legalization largely settled, Oregon’s elected officials began making annual adjustments during legislative sessions beginning in 2015.  Each legislative modification to Oregon’s regulated cannabis system has attempted to improve the industry’s economic stability by removing barriers to entering the market while at the same time enhancing regulatory compliance to address public safety concerns while withstanding federal scrutiny.

Oregon is not creating a new industry, it is converting an illegal cannabis production economy, and a loosely-regulated medical program, into a well-regulated legal market

Oregon oversupply is a sign that policy choices made to attract illegal and grey market producers into the new commercial system have been successful; this was a start-up challenge Colorado and Washington didn’t have to face. Oregon medical marijuana growers had long been suspected of diverting into the illegal market so it was important to attract these well-established producers into the OLCC’s new regulated recreational marijuana program.

To entice medical as well as formerly illegal growers into Oregon’s legal market the state lowered the barriers to entry with low license fees and taxes and chose not to limit the number of licenses. This approach fulfilled the immediate objective to absorb medical marijuana providers into the OLCC market, but it has led to industry churn as businesses face mounting cost pressures and attempt to position themselves for the long term.

The ongoing objective is to account for and contain legally produced cannabis within Oregon, create consumer confidence in the legal market, and establish compliance performance boundaries for marijuana licensees.

By requiring the tracking of marijuana flower and marijuana products, CTS has provided the most reliable accounting for legally produced cannabis in Oregon. For the first time, the state’s production of marijuana is accounted for and there are consequences – criminal and administrative – for licensees that divert product from the regulated system.

Oregon’s legal market has created a new growth industry with quality product, a diversity of choices, and transparent information for consumers

Oregon’s successful transition to a regulated adult-use market has provided customers an unprecedented degree of consumer safety confidence. Oregon’s testing program and packaging and labeling requirements are considered best-in-class and are being replicated by other states that have legalized adult use cannabis. This confidence has contributed to consistent growth in retail activity as evidenced by the $198 million in state and local sales tax revenue generated since legalization.

On the demand side the establishment of a legitimate market has resulted in consumers shifting their purchase activity away from the illegal market to licensed retailers. The conversion of most OMMP dispensaries to OLCC retailers, coupled with the OLCC’s deliberate effort to allow medical grade products for sale at retail, has established a statewide retail network, in which medical marijuana patients are also able to obtain tax-free products.

Industry innovation has continued since the OLCC’s establishment of and oversight over the marijuana supply chain in January 2017; today consumers are able to find a selection of products reflecting a marketplace with 2,100 licensees. As more consumer choices have been introduced and prices have decreased, sales have seen a corresponding increase.

A context for change

Oregon’s current supply in the legal market is a reflection of successful policies to move production into the legal system. The adoption of the legal system by recreational consumers and medical patients for the purchase of branded and tested cannabis products is a strong indication that the legal system is winning the battle against the illegal market.

At the same time, Oregon regulators and law enforcement, with support of the licensed industry, are developing and utilizing new resources and tools to confront illegal market activity. Now that the legal system has successfully taken hold, policy makers can make adjustments combined with market forces to work towards a sustainable economic balance between supply and demand.

The economic condition of the market that the OLCC will be regulating in the next two years remains uncertain. Just as it took time to establish legal alcohol markets after the repeal of alcohol prohibition, the development of the legal marijuana industry will require patience. In less than three years Oregon has made substantial progress toward creating a controlled, economically viable and well-regulated cannabis industry. While regulations to control and manage this new industry will continue to change, no matter the future course, the ability to support existing and aspiring licensees and take enforcement against those that don’t follow the rules will be a crucial function for the state and the private sector businesses that have entered this industry.

A primary objective of establishing Oregon’s regulated market was to contain cannabis legally produced in Oregon from diversion into the illegal market.  Oregon’s legal cannabis market and its framework for accountability and containment indicates the system is performing as it was designed.

At this point we have another opportunity to make intentional choices.  With market mechanisms and thoughtful public policy, the state of Oregon and the OLCC can continue to control what we’ve created – to reinforce and strengthen the regulatory system we’ve built in just three short years.  One corrective policy tool proposed by the Governor would allow the OLCC to place a moratorium on licenses.  As the 2019 legislative session progresses other ideas may emerge.

We expect any guidance that the Governor and Legislature may develop during the 2019 legislative session will strengthen the continued implementation of a regulated marijuana system that balances public safety concerns with the vision of Oregon voters.

The 2019 Recreational Marijuana Supply and Demand Legislative Report is more than just about numbers. Its substance and specific methodology reflect a state-of-the-art approach for evaluating use and demand and normalizing values and equivalencies of differing cannabis products as produced and sold in the Oregon marketplace. While not infallible, this study provides a sound base for the discussion and debate of policy development. The OLCC appreciates the work and time its talented staff and outside peer reviewers have spent to bring forward this public data on legal marijuana production in Oregon.

A copy of the 2019 Recreational Marijuana Supply and Demand Legislative Report can be found on the OLCC on the Recreational Marijuana main page under the Government Resources column.

 

How To Choose The Right Kind Of Legal Marijuana For You

By Nancy Fernandez

Legal marijuana marketplaces are opening across the country, introducing a wide variety of strains and infused-products, all carrying individual effects and benefits. The balance of cannabinoids, terpenes, and THC changes the high and medicinal effects of cannabis. There is no single plant which produces an identical effect. Instead, each strain carries its own distinct characteristics. From the mellowing stoned of a good Indica to the energetic mood-brightening buzz of a strong Sativa, marijuana is diverse.

Medicinal marijuana is cultivated to meet patient needs and preferences. Here’s a look at how to choose the right kind of legal marijuana for you, so that you make an informed decision when buying or growing your bud.

Most Common Uses of Medical Marijuana

Usage statistics show that certain conditions are treated far more frequently than others. The medical marijuana registries of Colorado, Minnesota and Rhode Island reflect the following conditions to be the most commonly treated during 2018:

  • Chronic / Severe Pain
  • Severe Nausea
  • Post-Traumatic Stress Disorder
  • Cancer

Seizures, glaucoma, AIDS, muscle spasms and cachexia also feature as common treatments, but each makes up less than 2% of patients treated. Using these statistics as a guideline, one can see where the demand lies. Fortunately, almost all medical marijuana treats a broad spectrum of symptoms. While it is true that different cannabis induces different effects, any marijuana or marijuana-based treatment will relieve pain, reduce nausea, and help you deal with anxiety, depression, and stress. After all, 94% of all patients receiving treatment for pain agree that the intensity of their symptoms reduced drastically. Marijuana’s benefits cover a broad range of symptoms no matter which type you opt for.

Dank Denver

Your Medical Marijuana Options

Marijuana strains are classified according to the effects which they work the best at promoting or alleviating. Each plant, whether its hybrid, Indica or Sativa, will produce a unique combination of effects. Although cannabis is a complex plant, most users find that two basic choices emerge. Regardless of your symptoms, patients typically use one type of medical marijuana or alternate between two. Indica-dominant strains promote a sedative effect although delivering outstanding nausea & pain relief. Sativa-dominant strains promote an energizing effect & are great for combating depression. While keeping you productive they also grant a good mood and relief from pain & inflammation. Let’s take a closer look at your options.

Marijuana Strains for Pain Relief & Energy

Most often, medical marijuana manages and mitigates pain. Many potent strains are available to help sufferers overcome their burden. Patients get to decide between a range of stress relieving strains. Certain cannabis gives you the energy you need to stay productive, and others put you in a calm, relaxed mood. Sativa-dominant Sour Diesel is a perfect example of a strain which melts away stress. Thanks to its cerebral high, it provides pain relief to the whole body while elevating your mood. Finding diesel seeds rewards you with a plant which needs a lot of space. Its lemony-scent is quite strong so growers will need good ventilation. Sour Diesel is a very versatile strain. Aside from its excellent pain relief, it is also a great treatment for anxiety and depression. Recreational users also enjoy the high, thanks to how its intensity is comparable to NYC Diesel.

Medical Marijuana for Nausea & Sedation

Another key use for medical marijuana is to ease severe nausea. Patients are looking for cannabis which relaxes while slowing the mind and body, for example, Black Diamond Strain. Strong Indica-derivatives and intense CBD concentrates all promote sleep and nausea relief.  Darkside OG is a great treatment for nausea, and can be found at all leading marijuana dispensaries. As a prime Indica, it helps patients by providing powerful antiemetic effects. Those battling nausea will also love the way that it promotes a healthy appetite. Insomnia and stress-related nausea are also brought under control thanks to its balance. The buds given to the patients are with an earthy yet fragrant aroma. Carrying a scent similar to skunk but with hints of lemon, it is highly recommended before bed.

Cannabis Cultivation – Constantly Expanding

Between these two strains, you can see just how vast medical marijuana’s range of treatment is. According to Fortune cannabis industry will grow by as much as 220% in 2019 alone. We have already seen steady growth across both recreational and medical marijuana. With more and more patients seeking treatment, it is important to stay aware of buying trends and demand. Growers find opportunities for hybrids with medicinal effects targeted to a specific range of effects. Patients receive the benefit of a wider range of treatments to pick from. Whether you’re growing or looking for smoke-able buds, strains can always be found matched to your individual needs.


Author Bio:
Nancy Fernandez is a blogger who loves to write especially in the Cannabis vertical. She has written many informative blogs in other verticals too.

What Canada’s Legalization of Cannabis Means to the United States

By Scott Mandell, President of Cannabistry Labs

Following Uruguay’s lead, Canada recently became the second country in the world to federally legalize adult-use cannabis. This measure will allow the country to capitalize on substantial economic opportunities, propelling it towards becoming the cannabis capital of the world. Meanwhile, just south, the United States struggles to find a balance between federal and state policies. Global spending on legal cannabis is expected to reach $63.5 billion by 2024 which will almost exclusively flow to Canada. This means the U.S. is leaving copious amounts of cash on the table until the day federal legislation classifies cannabis as a Schedule 1 drug.

Before the legalization of cannabis in Canada, anticipation alone created a financial boom not seen since the dot-com mania of the late 1990s. Canadian investors began plowing millions of dollars into cannabis companies, without having recording profits yet. And they are not alone, American companies are also jumping on the bandwagon. There is a new wave of American companies becoming publicly listed in Canada for valuations approaching those of their Canadian counterparts. The only chance the U.S. has is to slow and ultimately stop this trend is the legalization is adult-use cannabis.

There are a few areas of the economy that would benefit most from adult-use cannabis sales: trade, taxes and job growth. The categorization of marijuana as a Schedule I drug alienates the U.S. economy from a lucrative global trade market. Legalizing cannabis on a federal level would enable the U.S. to enter the worldwide market for the plant itself as well as products derived from its compounds. The U.S. could trade cannabis plants with its neighbors and NAFTA partners Mexico and Canada, in addition to countless other international markets where cannabis is medically legal.

In addition to the international revenue plant trading would generate for the U.S., with the legalization of cannabis on a federal level, the government could tax cannabis sales and profit from the plant. Colorado provides informative and promising statistics that reflect the potential for the U.S. as a whole. Since legalizing cannabis for adult-use, Colorado has generated more than $500 million in tax revenue. A perfect example is Pueblo County. In a landmark report out of the Colorado State University-Pueblo’s Institute of Cannabis Research, researchers found that a taxed and regulated cannabis industry contributed more than $58 million to the local economy, reports The Denver Post.

Additionally, New Frontier Data projects that if legalization were to occur in all 50 states today, there would be access of 654,000 jobs, and would increase to 1 million by 2025. ZipRecruiter chief economist Cathy Berrera says, “Year over year growth of job posts in the cannabis industry is outpacing both tech (254% growth) and healthcare (70%).” This is a direct result of the vast amount of jobs in the industry, such as growers, extraction technicians, harvesters, marketers and budtenders, to name a few. There is no shortage of opportunities in the industry whether you touch the plant or not.

Legal cannabis in Canada will be an economic experiment, but it seems it will be an experiment that has the potential to pay off in a big way. Adult-use cannabis will undoubtedly improve the country’s economy and would do the same for the U.S. The U.S. missed out on the opportunity to become the first G7 country to legalize cannabis and reap the benefits that will come with it, but it’s not too late. The fact is, Americans now support legalization at historically high rates. A CBS News survey found that 59 percent of Americans think cannabis should be legalized. At this point, it not a question of “if” but of “when.” And the good news is when it does occur, the U.S. will have the benefit of using Canada as a model for best practices, eliminating some trial and error.

 

CBD And Legal Cannabis Market On The Rise

NEW YORK: A recent report by Arcview Market Research indicates that consumer spending on legal cannabis in North America is outpacing previous estimates. The report projects that retail cannabis sales will grow 33% from 2016, to about $10 billion this year. The data published projects that by 2021 the legal cannabis market will reach a value of $24.5 billion and at a 28% compound annual growth rate (CAGR).

A Major segment of the legal cannabis industry is the hemp-derived cannabidiol (CBD) market. According to a report by Forbes, Brightfield Group estimates that CBD sales have already hit $170 million in 2016 and at a 55% compound annual growth rate over the next five years the market will cross the billion-dollar mark.

In a report by Forbes, Director of Research at Brightfield Group, Bethany Gomez, explained, “One of the most surprising things we found during this research was how many companies are currently operating in the space, and how few of them are generating significant revenue. Essentially everyone is trying to do hemp, but only a handful is 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.”

Cannabis Sales Projected To Increase as California Paves the way for Recreational use

CALIFORNIA: The global legal cannabis market was valued at $14.3 billion in 2016 and is forecast to grow at a CAGR of 21.1% between 2017 to 2024 or culminating to $63.5 billion by 2024, according to a report by Ameri Research.

The market is going through a period of strong growth thanks to increasing legalization and decriminalization of cannabis products across North America and Europe. The report indicates that due to the complex regulatory structure at state and federal level, the full potential of the market is not yet clear. A recent report published by Arcview Market Research explains that growth of the legal cannabis industry will reaccelerate beginning 2018, as adult use sales ramp up in CanadaCalifornia, and Massachusetts along with medical sales in Florida.

In states like California for example, where new recreational cannabis laws went into effect on January 1st, 2018, analysts are projecting an increase in sales of Cannabis. The new industry is also expected to contribute to California’s tax revenue. The LA times reported that, California is on the verge of creating a legal market for marijuana worth more than $5 billion that will help make the state a destination for pot-loving tourists.

Top 3 Drivers Of North American Cannabis Packaging Market

UNITED KINGDOM: Technavio market research analysts forecast the cannabis packaging market in North America to grow at a CAGR of more than 10% during the forecast period, according to their latest report.

The market study covers the present scenario and growth prospects of the cannabis packaging market in North America for 2017-2021. The report also lists rigid packaging and flexible packaging as the two major segments based on packaging type. The rigid packaging segment dominated the market with close to 62% of the market share in 2016.

 

Revenue Growth In The Legal Cannabis Market

NEW YORK: A research published by Arcview Market Research indicates that people in North America spent $53.3 billion on legal, medical, and illicit cannabis in 2016.

The North American legal cannabis market posted $6.7 billion in revenue in 2016, or up 30% from the year before. The illicit market generated 87% of total pot sales, down from 90% in 2015. The data reveals that the illicit market is slowly losing steam as legalization campaigns continue to gain momentum across the country.

The legal market is expected to widen its reach and the research forecasts that growth will accelerate in the beginning of 2018 as adult-use sales ramp up in CanadaCalifornia, and Massachusetts along with medical sales in Florida. The market is expected to grow at 27% CAGR to $22.6 billion in 2021.

Troy Dayton, CEO of Arcview Market Research said in a statement, “The enormous amount of existing, if illicit, consumer spending sets cannabis apart from most other major consumer-market investment opportunities throughout history, the cannabis industry doesn’t need to create demand for a new product or innovation – it just needs to move demand for an already widely-popular product into legal channels.”

 

Oregon Economist Beau Whitney Releases Cannabis Jobs Report

12,500 Cannabis Jobs in Oregon Generating $315 Million in Wages

OREGON: Cannabis industry economist Beau Whitney of Whitney Economics today released the results of “Cannabis Employment Estimates,” a report compiled at the request of the Oregon State House of Representatives Committee on Economic Development and Trade on the number of jobs associated with the Oregon cannabis industry and a projection of the economic impact the industry is having on the state.

“On a national basis, the $50 billion cannabis market is essentially the equivalent to the U.S. wine market ($55 billion),” Whitney said. “And there are more than 1,000 businesses in Oregon that touch cannabis. I suspect that this is a very conservative estimate based on limited data from the Department of Employment and the OLCC.

In summary, Whitney’s report found:

  • As of February 21, 2017, there are 917 OLCC licensed cannabis businesses and an additional 1,225 applications for a cannabis business. 2,142 in total. The Oregon Employment Department lists 776 cannabis businesses inOregon
  • There are approximately 12,500 jobs associated with the cannabis industry in Oregon. These are jobs that directly touch cannabis and are not jobs associated with auxiliary businesses such as security, regulatory, accounting, consulting, real estate, etc. This is a very conservative estimate and these numbers are expected to increase once the more detailed analysis is completed
  • At an average wage of $12.13/hour, the total annual wages associated with these jobs are $315 million. With a multiplier of 4, this implies that there is $1.2 billion in economic activity related to these wages

The report does not extend into the supply chain for “shovels or picks,” meaning lights, greenhouses, insurance, real estate, accounting, security, etc.

“At present, I feel there are roughly 300,000 – 400,000 cannabis-touching jobs in the USA,” Whitney said. “That number will grow to more than a million as more states come online as legal markets. Cannabis is a job-creation machine.”

Whitney said a more comprehensive jobs report will be researched and published later in 2017, but this initial update should demonstrate the cannabis industry is a powerful force in the Oregon economic engine.

Green Bits Conquers Washington Cannabis Compliance Market

WASHINGTON: In episode 25 of the Investing in Cannabis Podcast, Brandon David interviews Ben Curren of Green Bits, discussing the company’s point-of-sale service designed specifically for cannabis companies. Founded on March 24, 2014, Green Bits has been growing steadily and building out its service to help canna-businesses grow and stay legal. Green Bits was also named the first runner-up at TechCrunch Disrupt, the first time in history that a cannabis technology company had been invited to participate.

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