The COVID-19 pandemic has caused several businesses and industries. This impact has led to massive revenue loss, unemployment, and a general drop in social welfare. However, the cannabis industry happens to be among a few sectors that have enjoyed significant growth during the pandemic, with 2020 record-breaking reporting consumption for medical and recreational products.
The current events in the cannabis industry are not entirely new. The industry has maintained an upward trajectory in recent years, spurred by the legalization of both medicinal and recreational marijuana across several states in the U.S.
In 2019, the global cannabis industry was valued at $17.5 billion and would value $65.1 billion by 2027. The market is said to be growing at a rate of 17.8% between 2020 and 2027.
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Canada Leading the Global Legalization of Marijuana
In 2018, Canada made international news and dominated several debates when the country’s upper house of parliament voted to legalize recreational cannabis use. A promise to legalize recreational cannabis was one of the campaign factors that drove Prime Minister Justin Trudeau into power. In his campaign pledge, Trudeau noted that the move to legalize the herb would deal a blow to the black market and prevent consumption among the underage. It’s a promise that seems to resonate well with the Senate as they voted 52-29 in favor of the bill.
Canada became the first country among the G7 to legalize recreational cannabis. It will be a case study and point of reference for many industry watchers, investors, and countries working on legalization policies.
Since the move to legalize, the Canadian cannabis industry has been booming and remains bullish. Investors have poured billions of dollars into the industry. Significant companies like Aurora Cannabis, Horizons Marijuana Life Sciences ETF, Aphria, and Canopy Growth led efforts to legalize cannabis in Canada. Also, you can always search for the best hash in Canada through google or other platforms for the best offer in the market.
The Changing Attitude Towards Weed
The marijuana industry has been drawing a lot of attention from growers, investors, and manufacturers. Although weed is illegal at the federal level in the U.S, several states have legalized either medicinal, recreational, or both uses of marijuana.
The U.S cannabis industry is booming, having generated $13.6 billion in 2019 and added 340,000 jobs to the economy. Up to 35 states have legalized the use of medicinal marijuana, while another 15 states are legalizing adult use of recreational cannabis.
In December 2020, the United Nations’ Commission for Narcotic Drugs, with a World Health Organization recommendation, voted to remove cannabis from the most dangerous drugs. The vote removed cannabis from Schedule IV classification under the 1961 Single Convention on Narcotic Drugs. This vote is an enormous vote of confidence and expected to have a far-reaching impact on the already booming global cannabis industry.
Cannabis was in the category of substances that were “highly addictive and highly liable for abuse.” This is the same group heroin and other opioids are placed in. Over time, research has proved the medical use that comes with the consumption of cannabis. These substances are also regarded as “particularly harmful and of extremely limited medical or therapeutic value.” This designation led to cannabis being labeled an illegal substance in many countries around the world.
The Emergency of CBD Products
Marijuana was legal in the U.S until 1937 when the Marijuana Tax Act came. At the time, the plant was becoming accepted as a medicine for different ailments, including cancer and pain relief.
Marijuana has a non-psychoactive natural compound called cannabidiol or CBD, from which the plant derives its health benefits. The mixture is extracted and sold in creams, oral sprays, pills, oils, and edibles like cookies and lollipops. In 2018, the market for CBD products was estimated to be $390 million and projected to grow three times to $1.3 billion by 2022.
Cannabis Stocks on the Rise
During the pandemic, cannabis has been an engaging social activity as friends met to wade off the loneliness that came with the quarantining. Also, it was a good source of entertainment and also used to reduce stress and anxiety.
The pandemic has been characterized by uncertainty episodes that have left people and families more stressed and anxious. Weed has been a relaxing substance for many. While many industries have dipped during the pandemic, the cannabis industry reported a lot of growth.
In October 2020, Canada’s monthly cannabis sales were soaring to $CAD 270 million. This was an increase from the $CAD 180 million reported the previous month.
The End of the Black Market
The illegal tagging and restrictions imposed on cannabis use have created a thriving illicit market for the substance that amounts to billions of dollars.
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In addition to political goodwill, there has been a growing sense of acceptance among citizens for medicinal and recreational use. Research shows that up to 70% of Americans support the legalization of weed consumption.
In states where cannabis is still illegal, plans are underway to have restrictions removed.
As North America continues to open doors for cannabis consumption, attention will now shift to the European market. The European cannabis market is expected to reach $39 billion, and Germany is leading the way.
With all these new and exciting updates happening around the world, you can expect to see the Cannabis industry take off to new heights in the coming years.