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.

 

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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Legalization of Cannabis Will Not Blunt Wine and Liquor Purchases, New TABS Analytics Report Reveals

CONNECTICUT: As legalized, recreational cannabis becomes available in more states, it is not expected to have a significant impact on the purchasing of wine and liquor, according to the TABS Analytics 2018 Wine and Liquor Study. Similarly, consumers are not strongly influenced by brand, outlet and price when it comes to their making purchasing decisions. Even though nearly two-thirds of consumers make wine or alcohol purchases, the study shows a highly fragmented, immature market in which 27 percent or fewer of survey respondents noted they were familiar with liquor brands and only 19 percent for wine. In comparison, brand engagement for other consumer packaged goods (CPG) categories typically exceeds 40 percent to 50 percent, with customers shopping more frequently at specific outlets, while seeking discounts and other deals.

“The wine and liquor markets are quite unlike any of the other CPG categories TABS tracks. Both categories are intensely fragmented, and consumers are not as heavily engaged in purchasing, which results in weaker brand power than we see in categories like cosmetics, vitamins or grocery,” said Dr. Kurt Jetta, president and founder of TABS Analytics. “Additionally, we don’t see the traditional deal-seeking behavior consumers typically exhibit when it comes to the beverage alcohol market. Even though outlets like Costco, Walmart and Trader Joes – which offer lower costs products – are among the top retailers, prohibitions on discounting liquors and other state-specific regulatory limitations to where these products can be sold result in pricing being less of a driver.”

TABS Analytics’ inaugural Wine and Liquor survey was conducted in June 2018 by SSI Research to examine key consumer, product and channel trends across 11 types of red and white wines and eight types of liquor, as well as attitudes toward use of cannabis. The survey included 1,900 geographically and demographically dispersed consumers, ages 21 and older.

Other key findings from the study include:

    • Legalization of cannabis to have minimal impact on beverage alcohol sales – Only 5 percent of regular wine purchasers and 9 percent of regular liquor purchasers indicated strongly that they would drink less if cannabis was legalized. Further, there does not appear to be a strong constituency against the legalization of cannabis, with less than 20 percent of wine and liquor drinkers saying they strongly opposed legalization.
    • Higher Education and Income Drive Wine and Liquor Purchases – Education has a high correlation with wine purchasing, growing from 29 percent for high school graduates or less to 60 percent for those with post-graduate degrees. Liquor purchases follow a similar trajectory, peaking at 40 percent with college graduates. Income appears to be a stronger predictor than education, however, for wine purchase levels, with 68 percent of consumers with incomes of $250,000 or more saying they regularly purchase wine. Liquor also shows upward momentum at higher income levels but is only regularly purchased by 42 percent in the highest income bracket. The survey also showed definite skews in ethnicity, with white consumers purchasing wine more frequently, black consumers purchasing liquor more frequently, and Hispanic and Asian purchasers at equally high levels for wine and liquor.
    • Geographic Wine and Alcohol Preferences Defy Conventional Wisdom – With the popularity of wine destinations of Napa and Sonoma in California, one would expect the West to dominate in wine purchasing. However, looking at regional preferences, the Northeast is the region where the largest percentage of people (53 percent) reported purchasing wine at least once during the past year, with the state of New Jersey outpacing the other top 13 states by a wide margin. Interestingly, the West region ranks lowest at 41 percent. Liquor purchasing is steady, around 35 percent in all regions overall. A closer look at census regions shows that only in the mid-South is liquor and wine purchasing equal at 41 percent.
    • Types of Wine and Liquor Purchased Highly Fragmented – Merlot (44 percent), Chardonnay and Cabernet (tied at 38 percent) are the top three types of wine purchased, while the remaining eight types are being purchased by 33 percent or fewer of consumers. At 61 percent, vodka is the most popular alcohol, with whiskey (45 percent), rum (36 percent) and tequila (35 percent) rounding out the top four types.
  • Walmart leads in wine, specialty retailers in liquor – Walmart accounts for 29 percent of wine purchases, followed by Costco (21 percent) and specialty retailers (19 percent). For liquor, specialty retailers rank at the top with 27 percent, followed by Walmart (20 percent), Costco (16 percent) and ABC stores (16 percent). The rest of the market for both wine and liquor is highly fragmented, with most other types of outlets accounting for less than 10 percent, including eComm, which has an estimated share of 5 percent

“Based on our survey, the wine and liquor industry appear immature, from the standpoint of market structure and consumer attitude, at present time,” Jetta said. “The combination of these factors create a fertile landscape for targeted marketing and investment spending to drive greater brand awareness. Since preferences and popularity of types of wines or liquors can change on a whim with a little catalyst, visibility at retailers – either through promotions at point of purchase or greater share of shelf – becomes disproportionate for wine and alcohol brands.”

Throughout 2018, TABS Analytics is conducting five studies across the consumer-packaged goods industry including: baby care, vitamins, wine and liquor, food and beverage, and cosmetics. The next webinar, on the food and beverage industry, will take place on September 12, 2018.

Analysts Forecast High Growth For North America Cannabis

IRELAND: The legal Cannabis revolution is only beginning. The 80+ years prohibition against its use is now ending and the tides are clearly turning. Despite being illegal for so long, more than 37 million people in the U.S. and millions more in Canada use Cannabis, both legally and illicitly.

The market for Cannabis in North America already is large and growing quickly. In 2018, more than $41 billion will be sold and by 2026 that figure will rise to $95 billion according to a new report, “North America Cannabis: New Markets, Competitors and Opportunities: 2018-2026 Analysis and Forecasts.

Authors state the Cannabis revolution offers new hope for many medical problems, a substitute for alcohol and tobacco, and unrivaled investment opportunities for individuals and companies wanting participation in this emerging market.

This report is focused on the U.S. and Canada (North America) markets for Cannabis, both legal and illicit. Specifically, this report covers:

  • North America Cannabis industry including market size and growth, price trends and competitive environment including the black market.
  • United States Cannabis market size and growth, regulation issues, market drivers, transition from illicit to legal, prices, user base, incidence of use, tax incentives, legal risks, financing issues, state metrics and characteristics, branding, derivative products, threats/opportunities to other industries.
  • Canada Cannabis industry including market size and growth, country metrics, regulation issues, comparisons with Colorado and California, black market, prices, market potential, production capacity, supply concerns, opportunities beyond cultivation, competitive environment.
  • Selected company profiles detailing product offerings, brands, facilities, operations, sales, distribution, prices, JVs, exports, expansion plans, yields, costs, patients, M&A activity, competitive advantages, strategies.

For more information about this report visit 

 

Global Cannabis Testing Market – Increasing Use For Medical Purposes To Propel Growth

UNITED KINGDOM: The latest market research report by Technavio on the global cannabis testing market predicts a CAGR of around 12% during the period 2018-2022.

The report segments the global cannabis testing market by product (instruments, consumables, and software) and by geography (the Americas, EMEA, and APAC). It provides a detailed illustration of the major factors influencing the market, including drivers, opportunities, trends, and industry-specific challenges.

Here are some key findings of the global cannabis testing market, according to Technavio researchers:

  • Increasing use of cannabis for medical purposes: a major market driver
  • Emergence of luxury cannabis products: emerging market trend
  • In 2017, the global cannabis testing market was led by the Americas with a market share of more than 54%
  • In 2017, the global cannabis testing market by product was led by the instruments segment with a market share of over 50%

Increasing use of cannabis for medical purposes: a major market driver

The increasing use of cannabis for medical purposes is one of the major factors driving the global cannabis testing market. Cannabis used for medicinal purposes is referred to as medical marijuana or medical cannabis. In this case, the whole, unprocessed cannabis plant or its extracts are used to treat a variety of symptoms and conditions. Medical cannabis contains many compounds that are collectively referred to as cannabinoids. The two main compounds are tetrahydrocannabinol (THC) and Cannabidiol (CBD). Though there are several other types of cannabinoids in cannabis strains, THC and CBD are the most abundant compounds. These compounds mainly address pain symptoms in multiple diseases.

Legislation Key For The Legal Cannabis Market

NEW YORK: 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, reaching $63.5 billion by 2024, according to a report by Ameri Research.

The market is going through a period of robust growth thanks to increasing legalization and decriminalization of cannabis products across North America and Europe. The report specifies that due to the complex regulatory structure at state and federal level, the full probable value 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 rise in CanadaCalifornia, and Massachusetts along with medical sales in Florida.

Major markets for the cannabis industry such as the state of California, where legal sales of recreational products have begun on January 1st, are expected to become examples of how to manage the new and growing cannabis industry. Giadha Aguirre de Carcer, New Frontier Data CEO, explained, “Significant changes are already underway in California for medical cannabis and adult use laws, which we see will have major implications for the cannabis industry, including ecommerce and delivery services in the state… As the largest state in the country – and the largest potential market for cannabis products – the implications for the growth of the industry because of California’s adult use market cannot be overstated.”

Cannabis Market Begins to Mature in Legal States

NEW YORK: According to a report by Ameri Research Inc., 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 and culminating to $63.5 billion by 2024.

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 legalization wave is moving beyond the U.S. region. In 2017, the Canadian prime minister has introduced a bill to legalize marijuana for recreational purposes. The proposed bill mandates the legal age for consumption of cannabis at 18 years, and provides clarity on the federal and state laws in regulating the cultivation, storage and distribution of cannabis across the country.

Strong sales in the cannabis market resulted in economic growth in states where sales of cannabis products are legal. The Ameri Research Inc. explains that, “Growing user base for recreational marijuana in states such as ColoradoCaliforniaAlaskaMassachusettsWashington DC and other states is a key factor boosting the tax revenues. For instance, in 2016 Colorado reported revenues exceeding 1.1 billion from the sale of marijuana products and the tax collected from the sale of these products is diverted into specific community development projects such as the construction of schools and infrastructure development, which is anticipated to improve the overall economy of the region.”

Global CBD Oil Market To Grow At 39.19% CAGR In 2017-2021.

UNITED KINGDOM: Cannabidiol (CBD) is one of the hundreds of cannabinoids found in the Cannabis sativa plant. CBD oil can be derived from two different species of cannabinoids: marijuana and hemp. The Americas dominated the global CBD oil market in 2016, followed by EMEA and APAC.

Hemp-based CBD oil products have a lower delta-9 tetrahydrocannabinol (THC) concentration, whereas marijuana-derived CBD oil products have a relatively high concentration of THC.

Technavio’s report, Global CBD Oil Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The firm’s analysts forecast the global CBD oil market to grow at a CAGR of 39.19% during the period 2017-2021.

Medical Cannabis Data Shows Strong Sales And Growth

According to a research published by Hexa Research, the U.S. medical cannabis market size was valued at USD 5.44 billion in 2016, and is expected to be valued $19.48 billion by 2024.

The medical cannabis market is still in stage of development and is expected to grow significantly during the forecast period owing to rising consumer demand. Consumer attitude towards the herb is continuing to shift in a positive direction in part thanks to its medical benefits for Arthritis, Migraine, Cancer and more. In the U.S it’s estimated that more than 50 million adults and 3 million children have arthritis. The demand for medical cannabis for arthritis alone is expected to grow at a CAGR of 17.8% over the projected period.