Increasing Application of Medicinal Cannabis to Promote Cannabis Growth
Cannabis legalization is gaining impetus across the world. Legitimate medicinal benefits and therapeutic applications are causing several companies to cultivate and manufacture new cannabis-based products.
Sophisticated Packaging and Innovation to Propel Cannabis-based Edibles Sub-segment
In terms of application, the cannabis market is grouped into medical, recreational, and industrial hemp. Under recreational application, the market contains topical and edible. The cannabis-infused edibles consist of cannabinoids and similar other active compounds from the plant. Hence, these are either developed with other infused products, such as cannabis-infused butter or with concentrates. Availability of cannabis-based beverages, candies, and chocolates is one of the notable cannabis marketcannabis markettrends. Additionally, product packaging related modification and innovation are projected to play a vital role in propelling the sales of edibles.
Fortune Business Insights profiles some of the major players operating in the global cannabis market. They are as follows:
- Aurora Cannabis
- Aphria, Inc.
- Canopy Growth Corporation
- MedReleaf Corp.
- Cronos Group, Inc.
- GW Pharmaceuticals, plc.
- CannTrust Holdings, Inc.
- VIVO Cannabis, Inc.
- Tilray
- OrganiGram Holdings
- Other key players
North America to Lead Due to Rapid Legalization of Cannabis for Medical Purposes
Geographically, the cannabis market is divided on the bases of Europe, Latin America, the Middle East and Africa, North America, and Asia Pacific. Out of these regions, in North America, the U.S. medical laws consider cannabis as a form of medicine or therapy for numerous medical conditions, such as epilepsy, Alzheimer’s disease, post-traumatic stress disorder, anorexia, chronic pain, cancer, and arthritis.
The legalization of cannabis first began in the U.S. in 2012 with Washington and Colorado becoming the first two states to approve its recreational usage. Canada has recently started playing a leading role in cannabis legalization and is emerging as a flag-bearer country. In July 2019, Columbia has legalized recreational utilization of cannabis.
The recreational usage of cannabis will be positively impacted by the subsequent price parity of cannabis bud as well as its commoditization in the legal and illegal market. Moreover, increasing mainstreaming and availability of raw materials will ensure price parity. It would also aid in smoothening the transformation of cannabis flower from the illegal market to legal business.
The taxes would be vital in channelizing the advancements in the legal market. A rise in the demand for cannabis from Canada, U.S., and the European countries is expected to help all the South American cannabis producers to upscale their production. It would reduce the pricing pressure on cannabis bud due to increasing imports both in wholesale and retail channels.
Key Market Players Focus on Expansion and Strategic Collaborations to Gain Competitive Edge
The cannabis market is robustly dynamic and highly competitive. Increasing number of expansion programs and strategic collaborations are positively affecting the market sales. A rise in the popularity of recreational cannabis is creating a rapid shift towards processed products, namely, topical, edible, and oils from simply buds. Given below are few of the key developments:
- Altria Group, Inc. declared that it has invested approximately USD 1.8 billion in Cronos Group, Inc. in March 2019. The main aim of the investment is to lead, scale, and compete in the rapidly growing cannabis industry.
- Hexo Corp., a prominent producer of cannabis, headquartered in Quebec, Canada, announced that it has partnered up with Molson Coors Canada in August 2018 to manufacture and supply cannabis-based beverages.
Source:
https://www.fortunebusinessinsights.com/industry-reports/cannabis-marijuana-market-100219