During the lockdown, consumers could not visit cannabis shops. The cannabis industry is heavily using social media and e-commerce platforms to reach consumers this year. Many cannabis products such as easy grow cannabis seeds become more popular as a result of the campaign.
Cannabis shops, producers, manufacturers, distributors, and warehouses were deemed essential services by some authorities. As a result, cannabis businesses and services have continued to serve consumers throughout the COVID-19 pandemic.
The key drivers identified within the market are:
- The medicinal properties of cannabis.
- Increasing the legalization of cannabis.
- Increasing advances in genetic development and the properties of cannabis.
As an example, in January 2018, the Australian government allowed cannabis producers within the region to export medical cannabis and its products to the global market.
North America dominates the market. The cannabis industry has grown and matured significantly within the US, thanks to its medicinal purposes. As a mind-altering drug, cannabis continues to gain favor among recreational and medicinal users within the US.
Trends Driven by Markets
In the cannabis market, medicinal cannabis accounts for the majority of sales. Many countries have legalized the usage of cannabis for medicinal purposes, like Australia, Canada, Chile, Colombia, Germany, Greece, Israel, Italy, Netherlands, Peru, Poland, Portugal, and Uruguay.
The US states where cannabis has been legalized to the greatest extent, comprise the adult population aged 50 years and above.
Consistent with Cannabis Europa, in Europe, France may catch up with Germany and the UK to legalize medical cannabis by the middle of 2020. Norway is exploring decriminalization of cannabis use and has some innovative harm-reduction policies in the works. Furthermore, several civil society movements for reforms are emerging across Scandinavia, including Sweden.
The North American Market Dominates
After the legalization of cannabis in Canada, the North American cannabis industry is set to become the world’s leading producer of cannabis. In October 2018, Canada legalized the use of marijuana for recreational purposes nationwide and many started cultivating home grown seeds.
In December 2018, the US government approved the bill, allowing cannabis containing less than 0.3% THC to be sold throughout the country. Similarly, a number of its derivative compounds are approved by the Food and Drug Administration for medicinal use.
The FDA has approved Marinol, Syndros, Cesamet, and Epidolex as cannabinoid medications. Furthermore, within the US, ten states have legalized cannabis for recreational use. On the other hand, 33 states and the District of Columbia have legalized cannabis for medical purposes.
Among these states, California, Washington, and Colorado are the top-selling cannabis products. The assembly levels of cannabis in North America have increased rapidly over the past few years due to the expansion of the leading players’ assembly capacities.
Landscape of competitive products and services
With local and regional players occupying significant shares within the market, the Global Cannabis Market is a particularly fragmented market. Within the cannabis market, companies are very active and are constantly involved in acquiring shares and developing various products. This is to draw in a broader portion of consumers toward their products. As an example, in January 2019, Canopy Growth Expanded Beverage Portfolio with the launch of the primary CBD-Infused Beverage Line Quatreau.
Companies within the US and Canada are focusing more on acquiring licenses for the assembly and trade of cannabis-based products. They’re also involved in the development of food products containing cannabis, which is the preferred mode of consumption by consumers.
Bottom Line
As cannabis continues to be researched and standardized for medicinal purposes, it is expected that demand and recognition will increase. This demographic profile is predicted to increase cannabis demand in the coming years as chronic diseases become more prevalent after 50 years of age.