Global Cannabis Market Projected Could Hit $97 Billion By End Of 2026
- Financialnewsmedia.com News Commentary
PALM BEACH, Florida, July 9, 2020 /PRNewswire/ -- The global cannabis market has been growing over the past few years and is projected to even intensify in the years to come. A report from Archview market Research and BDS Analytics said that that worldwide legal cannabis spending hit $14.9 billion in 2019, up from $10.2 billion in 2018 and is projected to grow to $42.7 billion by 2024. Another report from Fortune Business Insights topped that number by projecting that the global cannabis market will reach $97.35 billion by end of 2026 with a CAGR of 32.92%. Pretty impressive numbers both! The Arcview/BDS report added that the increase in sales from 2018 t0 2019 was "led primarily by adult-use markets in Canada, California and Massachusetts, and supplemented by the unique approach to medical markets in Florida and Oklahoma…" It continued: "This worldwide growth estimate… reflects the highest annual growth rate to date. This new data is in stark contrast with the mere 17% growth seen in 2018, due in large part to the shrinkage in California following the launch of adult-use sales on January 1, 2018. As a result of expected growth in key adult-use markets in the U.S. and Canada, Arcview Group has updated their 2024 forecast to $42.7 billion in worldwide legal cannabis sales." Active companies in the Cannabis market this week include Cannabis Strategic Ventures, Inc. (OTCQB: NUGS), Kona Gold Solutions, Inc. (OTCQB: KGKG), Puration, Inc. (OTCPK: PURA), Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT), The Green Organic Dutchman Holdings Ltd. (OTCQX: TGODF) (TSX: TGOD).
"The legal cannabis market grew by 46% in 2019 despite challenges caused by overregulation and overtaxing in the two biggest markets; California and Canada," said Troy Dayton, Founder and Chief Strategy Officer of The Arcview Group. "That is a true testament to just how popular cannabis is among consumers and the ongoing impact of new markets coming online and maturing. The possibilities are boundless as political progress opens up more markets across the world, and struggling markets sort out their regulatory framework."
Cannabis Strategic Ventures, Inc. (OTCQB:NUGS) BREAKING NEWS: Cannabis Strategic Ventures Announces Record Month with $1.3M in June Cannabis Sales - Cannabis Strategic Ventures, an emerging leader in the U.S. cannabis marketplace, is excited to announce topline performance data for the month of June, which featured over $1.3 million in sales, representing over 40% sequential monthly revenue growth. This performance demonstrates a dramatic acceleration in month-over-month growth.
"June set new records for the Company, with a massive acceleration in the pace of growth, which is so far continuing in July," stated Simon Yu, CEO of Cannabis Strategic Ventures. "We have successfully repositioned ourselves in the ecosystem of the California cannabis marketplace, moving up the ladder and widening our distribution footprint. We will continue to focus on ramping production capacity and steadily driving gains in quality, efficiency, and volume. That has been our focus all year. Besides dramatic expansion in sales volume by weight, we have also been rewarded by the market with steady gains in pricing. That represents the ultimate positive reinforcement."
Helping to drive performance in June, management notes that the Company's move in April to more than double its production capacity paid off in the form of expanded production last month as harvest size increased sharply. Prior to the expansion in harvest size, the Company had been consistently selling out of its entire inventory on a weekly basis.
To enable continued robust sales growth in the second half of the year and in 2021, and as noted in the Company's release dated June 17, Cannabis Strategic Ventures is in discussions aimed toward obtaining additional square footage up to 300,000 square feet of greenhouse capacity for cannabis cultivation, which would more than double the Company's current production capacity.
Other recent developments and major influences in the cannabis industry include:
Kona Gold Solutions, Inc. (OTCQB: KGKG) a hemp and CBD lifestyle brand focused on product development in the functional beverage sector, recently announced it recorded its highest gross revenue for 2020 in the month of June. The Company reported its two wholly owned subsidiaries, Kona Gold LLC and Gold Leaf Distribution LLC, had sales of over $100,000 and $30,000, respectfully, for the month of June. Gold Leaf Distribution's June revenue was also a record for the Company in terms of monthly sales.
Kona Gold started to see an increase in sales in late May as many states around the country eased restrictions and started their phased approach to opening back up. The Company attributes the increase in sales to the increase in distributor orders, wholesale orders, Amazon orders, and Ecommerce orders.
Puration, Inc. (OTCPK: PURA) recently confirmed the company expects the first step of a multi-step deal to merge PURA's cannabis cultivation spinoff with NCM Biotech to close (mid-July). PURA had previously spun-off its cannabis cultivation operation to Nouveau (NOUV) and is now unwinding that deal and moving forward with a new deal structured to include resolving the delayed issue of a planned dividend to PURA shareholders. NCM Biotech is a subsidiary of Kali-Extracts (KALY) being merged with PURA's cannabis spinoff. The terms of the planned merger transaction between PURA's cannabis cultivation operation and NCM Biotech includes a planned issue of dividends to PURA shareholders.
The overall transaction will take place in several separate steps. The first step anticipated is a change of control derived by a management buyout at a public company currently working in the medical cannabis sector. The management team at the public company is expected to simultaneously announce the planned acquisitions of PURA's cannabis cultivation company and KALY's NCM Biotech.
Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT), a diversified and fully integrated health and wellness company, recently announced 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.
The Green Organic Dutchman Holdings Ltd. (OTCQX: TGODF) (TSX: TGOD) a leading producer of premium certified organic cannabis, recently announced that it has expanded its exclusive licensing agreement with Colorado-based Stillwater Brands ("Stillwater"), it will be rolling out the powerful RIPPLE suite of products in Canada, including RIPPLE Gummies and RIPPLE QuickSticks.
Leveraging Stillwater's proprietary technology, TGOD launched its first Cannabis 2.0 product at the end of March – TGOD Infuser 10mg THC – which quickly became one of the top selling SKUs within the beverage category across the country. Given the success of this first product, TGOD has decided to expand the series by introducing additional formats. Moving forward, all formats will fall under the well-established RIPPLE brand name.
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