As the market for legal marijuana continues to grow at an international rate, trends come and go, anchored by numerous businesses that have decided to invest in the industry and hopefully come out victorious at the end.
For marijuana, 2018 continues to be a really monumental year. After almost a hundred years of prohibition, a sudden sea change washed over the entire world, and this year saw an increasing number of states legalizing either medical or recreational marijuana, along with numerous companies focused on the plant finding their footing in the young industry.
The sudden major change came about as a result of cannabidiol, or CBD, which is one of the many compounds that can be extracted from both the marijuana and industrial hemp plant. Widely known for its numerous health benefits, CBD single-handedly started a new market sector for the industry and ushered in a new age for the cannabis industry.
A sudden sea change
The enormous sea change in the industry is not without its problems, however. For one, CBD is usually derived from industrial hemp, which is a close cousin of marijuana. However, marijuana is still covered by a federal blanket of prohibition, even with numerous states making efforts to legalize both its recreational and medical use. Furthermore, it doesn’t help that marijuana and hemp almost look exactly the same.
Still, public understanding and acceptance have seen a steady increase throughout the more recent years, so it’s no surprise that both the plant and its wonder compound are still anchoring in a lot of support. As a matter of fact, CBD itself is enough fuel, with its numerous health benefits and uses.
Incredibly useful and technically legal at a federal level through a loophole, CBD managed to create a market sector that didn’t exist five years ago, and an increasing number of experts are projecting big numbers to come out from it.
For example, as per MarketWatch, a research by Ameri Research Inc. projected that sales for the global CBD industry would surpass the $30 billion mark by 2024. The research also explained that even though these numbers are already overwhelming, due to the complex legalities concerning CBD’s place in state and federal law, the market has not yet reached its full potential.
Moreover, as various countries from all over the world are starting to follow the trend (with Canada becoming the first-ever G7 nation to legalize the full recreational use of marijuana), it’s clear that this industry has nowhere to go but up.
In a report by Arcview Market Research, in partnership with BDS analytics, it’s also revealed that around one in four adults use cannabis where it’s legal. According to Arcview Group CEO Troy Dayton, “The end of marijuana prohibition is in sight and what that means for this market cannot be overstated.”
The entire movement can also be seen not just on the shelves but also in stocks, with the sector gaining a huge increase throughout 2018. In fact, according to Business Insider, millennials, a demographic that’s been known to stay away from investing, have taken an interest in marijuana stocks, and the result is a huge increase for the assets.
It’s interesting to see where this market will go and what it can reach as it fully ripens. Nevertheless, the industry is opening up more as each day passes, and it won’t be long before the marijuana industry takes hold and exhibits its full potential.